In a Country Where Washing Machine Penetration Is Just 21%, "First Home Appliance Is Samsung or LG"... Soaring Middle Class Opens Door Wide

India’s Middle Class Surges, Exceeding 400 Million
Sales of Samsung and LG’s Indian Subsidiaries on the Rise
High Growth Potential Driven by Demand for First-Time Purchases

As India's middle-class population surges, the sales of Samsung Electronics and LG Electronics—the two major domestic home appliance giants with a presence in the local market—are also showing a steep upward trajectory. As the purchasing power of the 1.4 billion population revives, demand for "first home appliances" is soaring, quickly turning India into a key strategic hub for the appliance industry.

According to the electronics industry on March 11, driven by the expansion of India's middle-class population, the Indian subsidiaries of both Samsung Electronics and LG Electronics have posted marked increases in sales.

At the Samsung Electronics South Asia Tech Seminar held last year in Gurugram, India, an attendee is examining the integrated washer-dryer 'Bespoke AI Combo.' Samsung Electronics.

The annual performance report of Samsung Electronics' Indian subsidiary shows that sales rose from 808.8 billion won in 2015 to 1.22226 trillion won in 2021, and then to 1.70489 trillion won in 2024. This represents an increase of about 113% compared to 2015.

On July 13, 2024 (local time), Lee Jae-yong, Vice Chairman of Samsung Electronics, took a commemorative photo after holding a meeting with local employees in Mumbai, India. Samsung Electronics

Similarly, LG Electronics' sales grew from 226.96 billion won in 2015 to 262.56 billion won in 2021, and further expanded to 379.10 billion won in 2024, marking a rise of about 67% compared to 2015.

This is interpreted as a result of the increase in the middle-class population directly translating into greater purchasing power for home appliances. As the Indian middle class expands rapidly, the consumer market is also growing quickly. It is analyzed that purchasing power is rising especially in major cities, with 55% of India's super-rich concentrated in 63 cities with populations over one million.

LG Chairman Koo Kwangmo observed the air conditioner production process at the LG Electronics Noida manufacturing plant in New Delhi, India, on February 24 of last year (local time). Photo by Ju LG.

According to the "ICE 360° Survey" by PRICE, an Indian non-profit organization, the population in India classified as middle class or above (annual income of 500,000 rupees or more) has steadily increased over the past decade. The middle-class population grew from 386 million in 2015 to 488 million in 2020. The report forecasts that India's middle-class population will rise to over 800 million by 2030 and to approximately 1.452 billion by 2046.

Boston Consulting Group (BCG), a management consulting firm, also projects rapid growth in India’s market, noting that the proportion of India's middle class—potential home appliance buyers—is expected to rise from 29% in 2020 to 46% by 2030.

Particularly, India still has relatively low household appliance penetration rates, with many regions where demand for first-time purchases remains high due to the lack of widespread adoption of the latest products. The penetration rates for major appliances in India are only 34% for refrigerators, 21% for washing machines, and 12% for air conditioners. From the perspective of appliance companies, this signals a market with significant growth potential.

Unlike other countries, Chinese appliance makers have been slower to enter the Indian market, which has benefited domestic companies. Since the armed border conflict between India and China in 2020, bilateral relations have deteriorated, prompting the Indian government to tighten regulations and scrutiny on Chinese investments. As a result, while Chinese companies are rapidly expanding their influence in the global market, domestic appliance firms have maintained top sales rankings in India.

Amid this, domestic appliance companies are ramping up their efforts to target the Indian market. Samsung Electronics, which has been active in India since 1995, is running locally tailored campaigns and targeting the premium and large-scale segments. Its premium product lines, such as premium TVs with vision AI (artificial intelligence) and gaming monitors, are particularly popular.

LG Electronics, which entered the Indian market in 1997, listed its subsidiary on the Indian stock exchange last year and declared India as a base country for its "Global South Strategy." As of 2024, LG Electronics holds the top market share in key product categories such as refrigerators, washing machines, air conditioners, and TVs. The company is also focusing on expanding its local business by constructing a third manufacturing plant in India and completely reorganizing the management of its Indian subsidiary.

An industry insider said, "As India's potential buying power grows with its expanding middle-class population, local home appliance sales are being positively impacted. Not only is the market itself highly promising, but perceptions of Korean appliances are also favorable, making India an emerging key market."

This content was produced with the assistance of AI translation services.