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Pent-up demand in the marketplace has prompted consumer durable makers such as Videocon, Godrej and Sansui, known otherwise for targeting the bottom-end of the market, to trade up. In recent weeks, Videocon has launched a range of technologically-savvy air conditioners, designed to improve performance and save energy. Some of these ACs are powered by apps and some of them can operate in all-weather conditions. Videocon has priced these products between Rs 36,000 and Rs 47,000, lower than the premium range of rivals such as LG and Samsung. The differential is 15-20 per cent, trade sources say.
Coming at a time when mercury levels are soaring, Videocon hopes to make significant inroads into the AC market, doubling share (from the current 7-8 per cent) in the next year, says Sanjeev Bakshi, the firm's AC head. The top three domestic companies in the AC space are Voltas, LG and Samsung. Videocon comes in at the seventh spot after Blue Star, Hitachi and Panasonic, experts say.
Godrej Appliances, fourth largest domestic refrigerator maker after LG, Samsung and Whirlpool, has just launched a new range of super-premium refrigerators called NXW. Priced between Rs 52,000 and Rs 82,000, the range is lower than the super premium products of rivals such as LG and Samsung, which come for nothing less than Rs 1 lakh.
Kamal Nandi, executive vice-president and business head at Godrej Appliances, argues that his new range is priced higher than rivals when compared in terms of capacity. "The Rs 1 lakh price tag of rivals is for capacities such as 690 litre and 790 litre, respectively. The price tag of Rs 82,000 that we have is for a 430-litre refrigerator. No other brand with that capacity has this price tag. They are all priced lower than us in the range of Rs 60,000-65,000," he says.
Godrej, however, has priced some of its other models under the NXW range (such as 380 litres and 405 litres) competitively. They come between Rs 50,000 and Rs 60,000, in the same league as rivals.
Experts say the move to ride the premium wave with affordable products comes as consumers keep their spending in check. "Coming in with significantly better products at an affordable price tag is intended to help these players increase share," says Y V Verma, a consumer durables and electronics expert, who was earlier with LG and Onida.
This point is endorsed by Amitabh Tiwari, chief operating officer at Sansui, which unveiled a range of high-end curved LED TVs on Friday. "You should charge a premium only if you are a big brand; otherwise you become unaffordable," he says.
Sansui, which is the six-largest domestic flat panel TV maker after Samsung, Sony, LG, Panasonic and Videocon, says its new range is priced 15 per cent lower compared to the top three brands. Tiwari claims this strategy of affordable pricing backing a strong line-up should help it move up two notches in the pecking order of flat panel TV makers this year.
