The consumer electronics retail business in India is characterised by low margins.
The recent increase in the prices of raw material such as aluminium, copper and steel has added to the margin pressure.
However, one expects margin improvements with increasing reliance on private labels, better after-sales service and retailer-provided guarantees.
Consumers increasingly prefer organised retail stores in durables and electronics because they offer the entire range under one roof, convenience, good in-store service and so on. There is huge potential for consumer electronics retailing as retailers scale up.
