The slowdown in the economy augurs well for Bajaj Electricals, which has launched its premier range of small home appliances, Bajaj Platina. This is the first launch by the company after eight years of launching the value for money Bajaj Majesty range.
Positioned at the top-end to compete with global brands like Braun, Murphy Richards, Philips, Siemens and DeLonghi, Bajaj Platina will be an option for consumers who are looking for value for money at the high-end. "The Platina range is ahead of the curve in design and features and compared to global brands it is still value for money. Its positioning makes it an ideal choice for consumers looking to downtrade in the top-end," says R Ramakrishnan, executive director of Bajaj Electricals which also markets Murphy Richards in India.
The Platina range includes water heaters, food processor & mixers, juicers and mixer grinders, oven toaster grillers, toasters, room heaters and oil filled radiators and steam irons. The brand is currently being test marketed in Delhi and the national roll out will begin with Mumbai later this week and would cover 25 cities in the next 4 months.
"Bajaj Platina will have an independent distribution network comprising of premium distributors having a presence in top-end shops. It will also be sold in consumer electronic stores as a lifestyle brand," explained Ramakrishnan while highlighting that target clientèle for Bajaj Majesty and Platina differ as the former is targeted at Sec A, B and C consumers and the latter is targeted at the SEC A1, A2 and B1 consumers.
According to industry reports, the small home appliances is Rs 4,000 crore market of which the organised sector is Rs 2,500 crore and the remaining is unorganised. Further, the hi-end small home appliances is Rs 400 crore market. "Our appliances business has revenues of Rs 500 crore and has grown at a compounded annual growth rate (CAGR) of 30-32 per cent for the last five years. In financial year 2009-10, we expect to see a slight slowdown as we grow at 20-25 per cent," said Ramakrishnan.