Microwaves a high growth segment

CONSUMER GOODS: Manufacturers are customising their products.

With more and more people getting into the work culture, microwave ovens are being seen as a tool for facilitating convenience.

The increasing consumer awareness has led to a spurt in the demand for microwave ovens, thus this segment is beginning to make its presence felt in Indian households.

According to the Confederation of Indian Industry's ASCON survey for the April-September 2007-08 period, out of a total of 91 sectors reporting production, the microwave oven category has been identified as the high growth segment, registering a 10-20 per cent growth rate.

"Microwaves failed to take off initially in the country as they were not considered apt for Indian cooking needs. But the credit must be given to industry players for educating the consumer about the utility of microwaves and introducing options for the Indian buyer. The challenge in this category is to get the consumer to use the microwave oven for actual cooking, rather than using it as a mere re-heating product," says Suresh Khanna, secretary-general, CEAMA. 
  

MOVING UP THE VALUE CHAIN
Company	Percentage share
LG	34
Samsung	19
Electrolux	9
Onida	7
Godrej Appliances	5

According ORG estimates, during 2006-07 production of microwave ovens stood at 657,000 units and is projected to increase to 1 million in 2007-08 with a growth rate of 41 per cent.

Consumer goods companies are now shifting their focus to product innovation and consumer education in order to improve sales for the category. For Haier, Electrolux, Godrej and Whirlpool, microwaves figure high on the priority list to compete with market leaders LG and Samsung.

"Haier is aiming for a larger share of the microwave oven market by launching new models in this segment. Haier microwave ovens come with true nutrition technology. Food cooked in these microwaves retain most of its vitamins and minerals by using less water (as compared to conventional cooking) and prevents leeching away of the food's vital nutrition," says RT Rajan, vice-president (sales and marketing), Haier Appliances (India).

Manufacturers are trying to customise microwave ovens to make them suit the Indian tastes and preferences. Whirlpool has introduced 'MagiCook' microwaves with the option of MicroTawa that ensures food to be cooked as per a variety of Indian recipes.

Mirc Electronics, too, has launched new India specific models apart from having special models for barbecue under its umbrella brand Onida. Godrej has introduced its Eon microsteam model, which promises to retain the original flavour in cooking.

Apart from introducing new models, companies are looking at alternatives to make microwaves more popular.

Says Madhav Nene, GM (marketing), Electrolux, "We have started organising cookery classes in many cities. In addition to this, we offer a demo booklet which helps the consumer to have a better idea about the product."

According to industry experts, the demand for microwave ovens is likely to lower the price for its entry level making it more affordable for the customer. The price for microwave ovens currently ranges between Rs 4,000 and Rs 14,000.

"People are more open to adopting non-conventional cooking methods that make cooking easy. With additional disposable income and the falling prices of microwave ovens over the past few years, we see a distinct trend of people preferring microwave ovens over conventional ovens," says Kamal Nandi, vice-president (marketing and sales), Godrej Appliances.