Ever since 1991 when the Indian economy was liberalised, floodgates have opened for the so-called ‘white goods’ or consumer durables and electronic goods. Both foreign and indigenous entrepreneurs capitalised on the various sops and incentives to flood the market with consumer goods. The approval of FDI upto 51% as also trade flow, capital flow and technology flow helped in the rise of different brand names in the white goods sector.
Whirlpool, Samsung, Thomson etc. to name a few. The cut-throat competition meant that prices were slashed and a whole lot of incentives offered to lure the consumer. As more and more companies joined in the fray a glut resulted. The major names in TV, fridge or washing machine production could absorb the shock but indigenous companies had to pay the price.
The ‘middle class Indians’ is known for his consumer savvy mentality. However, though his desires never dry up, his bank account is limited. The demand for white goods rise steeply. The concerned companies eagerness to tap the market during this period results in over estimation and thus over production and what follows is Take two one free schemes.