Industrial Goods vs Consumer Goods: What is the difference?

Industrial Goods vs Consumer Goods: What is the difference?

Goods or products are classified into two categories depending on their usage- industrial goods and consumer goods. Industrial goods are those products that are used for the manufacture of other products. On the other hand, consumer goods are those products that can be directly used by consumers. According to the online industrial machinery portals, industrial goods encompasses raw materials, industrial tools, manufacturing plants and other industrial components. 

Online engineering portals can distinguish industrial and consumer products based on the demand, buyers, value of products, marketing and after-sale services. The demand for consumer goods is direct. However, the requirement for industrial goods is derived from the demand for consumer products. 

Buyers of consumer goods are found in higher concentrations, whereas buyers of industrial goods are found in limited numbers. Also, industrial commodities have specific buyers such as car manufacturers, distributors, resellers whereas, buyers of consumer goods are the general public.

Furthermore, the price of consumer products is comparatively less than industrial commodities. The nature of industrial products is highly technical and complex. A layperson cannot assess the value of industrial goods unless they possess a basic understanding concerning the trade of industrial commodities. Industrial goods are bought on the basis of rationality. However, the purchase of consumer items is based on emotional needs. 

To lure individuals in buying consumer items, sellers combine incentives such as gifts, discounts, cash backs etc., with the purchase of goods. On the other hand, such inducements are not recurrent while purchasing industrial goods. The provision of a lease is prevalent during the purchase of industrial materials because of its high price. Hence, the seller quite often arranges leasing facilities for the buyer. Concerning consumer items, leasing arrangements are less prevalent. 

The demand for industrial goods is often concentrated in fixed geographical regions. Among industrial commodities, durable goods are called capital items and, they have a high value. Non-durable industrial goods are known as expense items. These items are used within one year.

Based on the consumer habits of individuals, consumer goods are divided into shopping goods, convenience goods and speciality goods. Convenience goods are those materials that are purchased frequently at less price and have short durability. Milk and fruits can be considered convenience goods. Refrigerators, furniture, television and other final engineering products come under shopping goods. These goods have long durability and high value. Speciality goods are those commodities that an individual will buy at all expenses. For instance, clothing or an automobile or pieces of jewellery belonging to a particular brand. An additional category of consumer goods is consumer services. They are intangible products or services that are purchased and consumed simultaneously. Common examples of consumer services include electricity, automobile repairs, haircuts etc.

There are several online portals for Indian engineering equipment and industrial tools. These portals facilitate the import and export of industrial commodities across the globe. Online portals for the purchase of consumer goods are also available abundantly. 

For the best industrial products, contact EngiHubs.

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