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The kitchenware sector in Rajkot, which accounts for 70 per cent of the Rs 1,200-crore non-electronics kitchen accessories market in India, is working on establishing its brands and tapping new ways of doing business. One way in which this traditional segment is trying to market itself is forging links with e-commerce companies.
With demand for kitchenware falling 20 per cent in the past six months or so, companies in the sector are exploring various channels. "Rajkot has established itself as a brand in the kitchenware sector since long. However, the sector remains largely unorganised," says Pankaj Rathod, president, Rajkot Kitchenware Manufacturers Association (RKMA). He adds many companies have now realised the potential of marketing.
"A slowdown in the economy has affected the spending power in India, which reduced the kitchenware business from Rajkot by about 20 per cent. One could use cutlery and other kitchen accessories even if these become old," he says.
Rajkot is home to kitchenware brands such as Cristal, Glare, Vikas and Actionware. The four-decade-old sector here has about 450 kitchenware manufacturers, but only a handful (about 15) have been successful in creating brand value. Now, these companies are looking at exploring new avenues such as online retail to boost their brand value, as well as expand reach.
Sensing the trend, the RKMA had recently conducted a seminar to educate smaller players about online retail and how to jump on the e-commerce bandwagon. "At the seminar with a leading e-commerce company, around 45 manufacturers agreed to join the online-selling platform. More are expected to join soon. Some of us are already selling products online," Rathod said.
Some kitchenware manufacturers are focusing on marketing their brands by sponsoring cookery shows on regional television channels. The sector is also trying to promote its products on various TV channels. "The way online shopping has picked up in India, we are hoping to garner good business through this route.
E-commerce companies are offering huge discounts, which increases demand," says Haresh Dave, partner, Uma Enterprise, which has registered itself on one such site. Online sales, however, account for a marginal portion of overall sales, as it is still in the nascent stages for most companies here.
Actionware India has started selling its products directly in rural and semi-urban areas. "It is the need of the hour to explore new techniques of business. That is why we decided to send our products direct to consumers," says Ashok Manvar, managing director of Actionware.
