Durable goods refer to a categorization of products that can be used repeatedly over a long period of time unlike perishable goods.
Also known simply as durables, it mostly refers to items and products that can last for years before finally being condemned by the owner out of necessity, upgrade, or deterioration.
While there is no standard to the amount of time that a product would have to last before being classified as a durable good, the general consensus is that if a product can last for more than 3 years, it would be a durable good.
This basically eliminates any types of products that can be consumed or would expire such as snacks and alcohol swabs.
However, that does not mean that all products that last less than 3 years are not durable goods.
Some of the common features of durable goods are:
- Can be used more than once
- Can last for years
- Have an expiry date of more than 3 years after manufacture
When a market is spending a lot of money on durable goods, it is said to be an indicator of a strong economy.
As people earn more income, they would start spending more money on such products and even go for those that of higher quality.
For example, if someone is just earning just enough in living wages to make ends meet, he or she would be spending most of the money on essential and basic items such as food and shelter for subsistence.
There is simply no disposable income left for hard products such as laptops and cold press machines.
When one is earning a comfortable amount in salary, then there might be disposable income left after spending on essential items to be spent on consumer durables to improve the quality of life.
Some common examples of durable goods are:
- Smart phones
- Kitchen table
- Bed frames
The tracking of durable goods data is usually meant for economic statistics.
It has no real use for a company unless it’s a huge organization with a diverse portfolio consisting of both durable and nondurable goods.
With the emerging movement of saving the environment in the recent decades, more and more products are being designed to be more durable so that as little harm is done to the ecosystem as possible.
Even traditionally perishable goods are starting to be converted to durable.
An example is the rising demand for stainless steel reusable straws. Instead of using plastic straws with only one-use, teaching consumers to use reusable straws can reduce the huge number of plastic straws that are condemned each day by consumers.
Switching to such durable straw is seen as a small role consumers can play towards saving the planet.