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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 around 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 one year, says Sanjeev Bakshi, the firm's AC head. The top three domestic AC players are Voltas, LG and Samung. Videocon comes in at number seven after Blue Star, Hitachi and Panasonic, experts say.
Godrej Appliances, the number four 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 a lakh rupees.
Kamal Nandi, executive vice-president and business head, Godrej Appliances, argues that his new range is actually priced higher than rivals when compared in terms of capacity. "The Rs one lakh price tag of rivals is for capacities such as 690 litres and 790 litres 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 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," Y V Verma, a consumer durables and electronics expert, who was earlier with LG and Onida, says.
This point is endorsed by Amitabh Tiwari, chief operating officer, 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 around 15 per cent lower in price when compared with top three brands. Tiwari claims that 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.
