India's Consumer Durables Market: The Rise of Premium Demand

Saurabh Srivastava, Vice President – Sales & Marketing, EPACK Durable Limited (NSE: EPACK & BSE Scrip Code: 544095), in an interaction with Thiruamuthan, Assistant Editor at Industry Outlook, discusses the growing premium demand in India’s consumer durables market and the factors influencing consumers to spend more on appliances and electronics.

With over two decades of experience across sales, marketing, business development, and manufacturing, he highlights how OEM/ODM partnerships, efficient manufacturing, product differentiation, and customer-centric strategies are helping brands respond to evolving consumer expectations.

What is driving Indian consumers to spend more on premium appliances and electronics?

The Indian consumer durables market is seeing a gradual shift from need-based purchases towards more considered buying decisions, where consumers are looking at performance, convenience and the overall value a product offers. Rising aspirations, urbanization, changing household needs and greater access to information have all contributed to this shift. Consumers are increasingly aware of the features available across product categories and are willing to spend more when they see a clear benefit.

However, premiumization is not limited to high-end products or affluent consumers. It is also visible in the growing demand for products that offer better functionality at accessible price points. Whether it is an energy-efficient air conditioner, a washing machine that simplifies everyday chores or a kitchen appliance that saves time, consumers are increasingly looking for products that improve their everyday lives.

This presents an opportunity for brands and manufacturers to develop products that combine improved features with reliability and affordability. The challenge is to understand which features consumers genuinely value and translate them into products that meet these expectations without making them unnecessarily expensive.

What makes consumers choose a premium appliance over a more affordable alternative?

The decision often comes down to the perceived value of the product over its lifetime rather than the initial purchase price alone. Consumers may be willing to pay more for better performance, durability, energy efficiency or features that make the product easier to use. In many cases, the additional investment is justified when the product delivers a noticeably better experience.

At the same time, consumers remain conscious of their budgets. A higher price does not automatically make a product more attractive, particularly if the additional features do not address a practical need. The distinction between premium and affordable products is therefore becoming more nuanced, with consumers looking for the right balance between functionality, quality and cost.

For brands, this means understanding the consumer segment they are targeting and ensuring that product differentiation is meaningful. From a manufacturing perspective, the ability to develop products with different feature sets and price points, while maintaining consistent quality, is increasingly important. The opportunity lies in making better product experiences accessible to a wider range of consumers.

How are consumers deciding whether a premium product is actually worth the price?

Consumers today are better informed and have greater access to product reviews, online comparisons, demonstrations and recommendations before making a purchase. This has made the buying process more considered, with consumers looking beyond marketing claims to understand how a product is likely to perform in everyday use.

The evaluation also extends beyond the initial price. Energy consumption, maintenance requirements, durability, ease of operation and the reliability of the product over time can all influence the perception of value. Consumers increasingly expect the benefits associated with a premium product to be visible in their day-to-day experience.

For the industry, this places greater responsibility on product development and quality assurance. Features must deliver tangible benefits, and product performance needs to be consistent. As an OEM/ODM manufacturing partner, we recognize that translating a brand's product proposition into a reliable, well-engineered product is critical. Ultimately, the strongest justification for a premium price is a product that consistently delivers on the expectations it creates.

Are Indian consumers paying more for technology, convenience, or better ownership experience?

It is a combination of all three, although the relative importance varies across product categories and consumer segments. Technology can make a product more attractive, but consumers are more likely to value it when it solves a practical problem, improves convenience or enhances performance. Features that appear impressive on paper must also prove useful in everyday situations.

Convenience is particularly relevant in categories such as washing machines and small domestic appliances, where consumers are looking for ways to simplify household tasks and save time. In room air conditioners, performance, comfort and energy efficiency remain important considerations. Across categories, reliability and ease of use influence whether consumers feel they have made the right purchase.

The ownership experience also depends on how well a product performs over time. Consistent quality, dependable operation and ease of maintenance all contribute to consumer confidence. This requires manufacturers to look beyond individual features and focus on the complete product, from design and component selection to production and quality control.

At EPACK Durable, our role as an OEM/ODM partner involves working closely with brands to develop products that respond to these evolving expectations. Understanding the intended consumer and the product's positioning is an important part of translating market requirements into practical and reliable offerings.

What does the rise of affordable premium mean for consumer durable brands?

Affordable premium is creating an important middle ground between basic products and high-end offerings. A growing section of consumers wants better features, improved performance and greater convenience, but remains conscious of the price they pay. This means brands need to identify the features that matter most to their target consumers rather than simply adding more features to justify a higher price.

Achieving this balance requires close coordination between product design, sourcing, manufacturing and quality functions. Brands need flexibility in product configurations, while manufacturing partners must be able to support different requirements without compromising consistency or cost competitiveness. Efficient processes and greater integration across the manufacturing value chain become particularly important.

This is where OEM/ODM partnerships can play a meaningful role. At EPACK Durable, our capabilities across room air conditioners, small domestic appliances, large domestic appliances and components enable us to work with customers across a wider range of product requirements. Our focus is on helping customers develop and manufacture products suited to their target segments, while balancing functionality, quality and affordability.

As affordable premium becomes more mainstream, the competitive advantage will increasingly lie in delivering the right product at the right price, supported by efficient manufacturing and dependable quality.

How should brands balance premium features with India’s strong value-conscious buying behavior?

Brands need to recognize that Indian consumers are not necessarily looking for the cheapest product; they are looking for a product that offers the right value for their money. The approach, therefore, should be to identify the needs of different consumer segments and develop products with meaningful differentiation across price points.

This begins with understanding which features influence purchase decisions and which genuinely improve the user experience. While quality and reliability must remain fundamental, additional features should have a clear purpose. Offering too many features without a corresponding benefit can increase costs without necessarily improving the product's appeal.

Manufacturing efficiency is equally important. Thoughtful product design, effective sourcing, component integration and disciplined cost management can help brands introduce improved functionality while remaining competitive on price. Flexibility in manufacturing also allows different product configurations to be developed for varying market requirements.

For manufacturing partners, the objective is to support brands in achieving this balance without compromising product performance. As consumer expectations continue to evolve, the ability to combine product development capabilities with efficient, scalable manufacturing will be important in making premium features accessible to a broader market.

What has your leadership experience taught you about building products and strategies for consumers who are increasingly willing to trade up?

One of the key lessons is that product development must begin with a clear understanding of the consumer and the market the product is intended to serve. Consumer preferences are constantly evolving, but not every emerging trend translates into a sustainable business opportunity. It is important to distinguish between features that generate initial interest and those that create lasting value for consumers.

In an OEM/ODM business, this understanding also needs to be translated into close collaboration with customers. Building a successful product involves more than manufacturing to a specification. It requires an understanding of the product's positioning, intended price point, performance expectations and the requirements of the brand. This calls for coordination across product development, sourcing, manufacturing and quality functions.

My experience has also reinforced the importance of staying adaptable while maintaining strong operational fundamentals. Businesses need to respond to new opportunities, but expansion must be supported by execution, quality and the ability to deliver consistently at scale.

As EPACK Durable continues to expand across room air conditioners, small domestic appliances and large domestic appliances, our focus remains on strengthening these capabilities and building deeper customer relationships. Ultimately, sustainable growth comes from understanding what the market needs and developing the capabilities to deliver it reliably.

Looking ahead, what will India’s consumer durables market look like over the next 5–10 years as premium demand becomes more mainstream?

Over the next five to ten years, I expect India's consumer durables market to become more diverse, with greater emphasis on product differentiation, convenience, energy efficiency and value. As consumer aspirations evolve and product awareness increases, features that are currently associated with premium offerings are likely to become more accessible across a wider range of price points.

We are also likely to see demand develop across a broader set of product categories. While room air conditioning will continue to be an important market, categories such as washing machines, air coolers and small domestic appliances offer opportunities to address changing household needs. For brands, this will mean responding to different consumer segments with products that are differentiated but remain competitive.

These changes will also have implications for the manufacturing ecosystem. Product development capabilities, component integration, efficient sourcing and consistent quality will become increasingly important as brands seek to expand their portfolios and respond to market opportunities. The ability to develop products efficiently and scale manufacturing in line with demand will be a key consideration.

For EPACK Durable, portfolio diversification and the strengthening of our OEM/ODM capabilities remain important priorities. Our focus is on building capabilities across product categories and deepening our partnerships with customers, so that we can support their evolving manufacturing requirements. Over the long term, the opportunity will be to combine consumer understanding, product development and efficient domestic manufacturing to create sustainable value for the industry.

What is your personal leadership mantra?

My leadership mantra is to stay close to the customer, remain open to learning and focus on execution. Markets and consumer expectations change, and it is important to keep questioning existing assumptions rather than relying on what has worked in the past. At the same time, new ideas must be supported by a clear understanding of business requirements and the ability to implement them effectively.

I also believe in building teams that take ownership, collaborate across functions and remain focused on quality and customer requirements. In a manufacturing business, the final outcome depends on how well different functions work together, from understanding the initial requirement to delivering the finished product.

For me, sustainable growth comes from combining ambition with discipline. It is important to recognize new opportunities and adapt to changing market conditions, while remaining consistent on the fundamentals of quality, operational efficiency and customer relationships. In the long run, businesses grow stronger when they can evolve with the market and continue delivering value to their customers.