Market Structure

Our research reveals that the switches market is more fragmented than any other building electrical. Regional brands contribute 50% of the sales. This is in sharp contrast to the CFLs market wherein small and regional brands contribute only 13% of the sales.

Almost 20% of the switches sold were to projects. The sales contribution towards projects was lowest in South zone.

15% of CFLs were being sold to projects.

Market Growth

Sales of switches registered a 34% decline in the February 2009 compared to the November 2008. The decline in sales was more pronounced in the non-modular category. The dip was evident in all parts of the country.

The picture in the lighting industry was quite different. Even though there was a decline in sales, it was not as steep as in wiring accessories. CFLs registered a 19% decline in sales. North India -the biggest market for all building electrical products registered a 26% decline in sales for CFLs.

Retail Dynamics

A very high proportion of the outlets selling building electrical stock both switches and CFLs. The decline in sales was not accompanied by a dip in product presence.

Our research revealed a definite seasonality in the sales volume in most parts of India. The third quarter which is a festive season in all parts of India registered higher sales.

Wholesale markets for building electricals (present in almost all major cities) registered a lower selling price for electrical goods. Our research revealed a price differential of almost 10% between the wholesale and retail markets for CFLs and Switches.

For further information, please write to bibison@marketpulseindia.com