Consumer Electronics and Appliances Market—Assessment of Service Skillset and Workforce Demand, 2017

Scope & Limitations

India vs. the World—India is expected to overtake major world economies; create urban infrastructure complexities and thence demand for skilled workforce

Workforce availability in CEA Industry—With growing demand for CEA and their increasing complexities, trained/skilled personnel are necessary; 70% of current workforce unorganized

Drivers and barriers of the Indian economy—Consumer confidence is expected to remain optimistic, leading to spending on appliances and thus the requirement for skilled workforce

Growing need for customer service—Brand loyalty is driven by customer centric service models which can be implemented with the help of skilled service personnel

Skillset Requirements by Service Models—Pooled engineers should have the requisite skillsets to work across multiple product lines and hence the imperative for training initiatives

Urban vs. Rural Service Scenario—CEA companies are already investing in developing training infrastructure in urban areas, however rural market needs attention

Methods Employed for Manpower Retention—Monetary incentives based on performance is the most effective technique adopted by CEA companies to retain service personnel

Challenges Faced by the Service Industry—Manpower deficit, outdated curriculum coupled with high attrition and lack of soft skills in engineers impacts the dynamics of the industry

Current Service Infrastructure—Consumer electronics has 96% share of the total exclusive service franchise and 86% share in the total shared service franchise centres

Workforce Segmentation by Service Infrastructure—85% of the servicing of consumer appliances is done mostly by the unorganized segment creating the need to move them to organized gamut

CEA Market Size and Forecast—Consumer Electronics and Appliances Market is witnessing robust growth which will drive the need for manpower in after sales service

Consumer Electronics: Market Segmentation—TV market represents the biggest category in the CE market; Need for skilled technicians for installation and service of feature rich FPD TVs

Consumer Appliances: Market Segmentation—Consumer appliances primarily require after sales service involving replacement of parts due to wear and tear

Key challenges in the CEA industry—Manpower constraints in terms of installation, repair and after sales support is a huge challenge in the CEA industry

Evolving India’s Demographic Profile—With 70% of the population in middle class group by 2020, the spending on appliances and subsequent service requirements would increase

Urbanization Rate in India by 2025—Higher rate of urbanization will have a ripple effect on the purchase and service requirements of consumer goods

Online Retailing in CEA Industry—High-end appliances such as TV, WM, AC and REF would require installation and service post purchase through online channel

Focus on building customer-centric models—CEA companies should focus on identifying needs by different customer segments and ensure effectiveness of customer engagement models

Critical Initiatives by Government and OEMs—Focus by government on implementing PIA in association with NSDC while OEMs should create Resident Engineers by providing training platform

Recommendations for Skillset Development—Developing training infrastructure, compelling remuneration, increasing female workforce & enhancing course curriculum would be the critical steps

Glossary

Maximize opportunities from existing products and markets; systematically explore new products, markets, including inorganic opportunities

Our Growth Consulting Canvas

Legal Disclaimer