Consumer durables are the goods that are designed to last long and consumer don’t have to purchase them frequently due to their durability and resilience. Consumer durables are the goods that typically last for more than three years. Other names given to consumer durables are the durable goods and durables.
Examples of Consumer Durables
Consumer are generally divided into two categories
- Durable Goods
- Non-durable Goods
Durable goods have an extended goods life and they don’t wear out or get damaged that quickly as compared to the non-durable goods. Due to their durability and long lasting features durable things are more expensive as compared to non-durable things.
There are a number of examples of the durable things such as a washing machine is an example of durable thing, furniture is another example of a durable thing. On the other hand the detergent used in the washing machine is a non-durable thing as it is depleted when the bottle is empty. In terms of business entities and companies the example of durable things can be a manufacturing plant, office furniture or a loading vehicle purchased for the company
Importance of Consumer Durable
Since most of the consumer durables are big ticket items for both the customers and the business entities so they only purchase them in case when they are completely sure about that. The demand of consumer durables decrease during recession as most of the people can’t afford to buy them. It is important for the investors to know when to invest in the companies that deal in making and selling of the durables.
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