Durable goods and Its Dependence on Global Economy
In this dynamic and fast moving economy globally durable goods play a very important role in Inventory management.Today if you are using durable goods it will give you a better Return on Investment (ROI) because of their long lasting nature.Though it may be a little expensive than semi durable goods and non durable goods but provides you a higher reliability.
The recent trend in the purchase of durable goods has witnessed a steady decline and the main factor for this decline is recession.Post recession period has again increased the orders for durable goods globally.
Durable goods from Manufacturers Perspective
If you look form manufactures point of view then producing mass durable goods leads them to a long term loss.The reason stated is understandable though.For example,suppose a customer buys a durable good,furniture supposedly,then since durable goods have a long life so no or very little wear and tear occurs in that furniture for months or even years.Now that customer will not be in the market for years for the repurchase,thus ultimately leading to the loss for the company.
Durable goods from Manufacturers Perspective
If you look form manufactures point of view then producing mass durable goods leads them to a long term loss.The reason stated is understandable though.For example,suppose a customer buys a durable good,furniture supposedly,then since durable goods have a long life so no or very little wear and tear occurs in that furniture for months or even years.Now that customer will not be in the market for years for the repurchase,thus ultimately leading to the loss for the company.
Durable goods are in high demand as far as customers are concerned but companies think otherwise.
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