The Hindu Business Line : It's raining offers again

THE run-up to Onam is soaked in rains this year. The showers normally come to an end in Chingam, the first Malayalam month during which Onam is celebrated, but this year, heavy rains lashed across the State, drenching Keralites who are on a shopping spree. Going by the ever-growing crowds in markets, it is evident that the showers have not really dampened their enthusiasm to splurge.

For the consumer, Onam has always been the best time to shop. In the past, when agriculture was the prime vocation of the State, there was no other occasion to spend on than Onam, the harvest festival.

That tradition still continues, though Kerala has forgotten its agrarian days and has become a consumer State. Onam, which is not associated with any religion, has in a way become a time of indulgence for Keralites.

The season witnesses every consumer electronics and home appliances company in the country make a beeline to this tiny State.

It is estimated that Keralites buy TVs, music systems and DVD players, refrigerators, washing machines and digital cameras worth an estimated Rs 400 crore during Onam.

In other words, the season generates more than one-third of the annual sales of such products in Kerala.

To cash in on the spending spree that happens in the span of just a month or so, all of them together shell out over Rs 50 crore in the State for sales promotion activities.

For instance, newspapers and television channels are all teeming with advertisements on special Onam offers. Another significance of the festival for consumer electronics companies is that the pan-India festival season gets kicked off with Onam.

Following Onam, other parts of the country too get into the festive mood to celebrate Vinayaka Chaturthi, Durga Pooja, Dussera and Diwali.

Companies try out their festival offers and new products in Kerala during Onam, before introducing them in other States.

Consumer electronics companies say that no other festival in the country accounts for such a large share for that region's annual sale like Onam does. And this year's Onam is expected to be more lavish as price of natural rubber — a major cash crop of the State — has ruled high and touched even record levels during the year. Kerala has one million rubber growers who have had a fantastic run this year.

The slow, but steady emergence of information technology industry in the State, and the booming construction activities, are the other factors that would add colour to this year's Onam. Another major source of Kerala's money — the NRI remittances — has also been continuing.

The fervour with which consumer electronics and durable companies treat Onam is visible across the State. Here are some of these companies' plans for the season.

Samsung India Electronics Ltd is targeting a sales of Rs 85 crore from Kerala this season. For the whole year, Samsung has projected a sales of Rs 175 crore at a growth of 45 per cent, said Mr R. Zutshi, Deputy Managing Director of Samsung India. The company has launched a special promotional offer, `Samsung Sammana Thoni' for the region. This offer, valid till September 16, assures a gift to the consumer upon purchase of a Samsung product.

A wooden boat with the oar hiding the name of the gift has been devised for the offer. Samsung has launched eight home theatre models, six digital audio players, nine digital cameras and SlimFit TVs.

Another South Korean electronics major, LG, is spending as much as Rs 7 crore for special promotional activities. LG Electronics India has come up with Kudathil Enthanu offer (What-is-in-the-pot offer) that promises assured gifts ranging from stainless steel flaks to non-stick cookware to mixer grinders, among others.

Customers can also win a range of other products through a lucky draw. According to Mr Gireesh V. Rao, Vice-President, Sales of LG Electronics India, the company is targeting a sales of 1.54 lakh units during this Onam, which is a 54 per cent growth over the sales last year. Total turnover for the season is pegged at Rs 122 crore, he said.

As part of the campaign, LG opened six exclusive brand shops in the State. A range of new products such as DTH-enabled TV, super slim TV and semi frost-free refrigerators were also launched.

Home appliances maker, Electrolux Kelvinator Ltd, is wooing customers with its `Price Surprise Offer.' Under this offer, Electrolux has priced its premium products at `never-before' rates in Kerala, company officials said.

For instance, the high-end Plasma Cluster 620 litre frost-free refrigerator is available at Rs 34,990 through an exchange offer. Washing machines, air-conditioners and microwave ovens are also being offered at reduced prices in both direct sales and through exchange offers. It is hopeful of a 30 per cent growth in turnover compared to last year.

Philips India Ltd is clubbing Kerala's favourite sports, football, with this year's Onam. The company is offering its customers a chance to win tickets to the FIFA World Cup 2006. In addition to the World Cup tickets, the company is holding out a range of offers such as lightening warranty of 1+3 years on colour TVs and scratch card schemes for DVD Hi Fi systems. Special prices for VCD music systems and home theatres are also on.

Akai Consumer Electronics India Ltd has come out with `Akai sure shot 4 offer.' Under this offer, consumers will get four gifts upon colour TV purchases. It has also launched a new 54-inch flat TV to add to its line up.

Domestic consumer electronics major, Videocon, is also luring customers with scratch-card based lucky draws and specially priced products.

For instance, the company will offer a 14-inch portable TV at less than Rs 5,000. Videocon has also roped in Malayalam film actress Kavya Madhavan as its brand ambassador.

The company targets its Onam sales to increase to Rs 75 crore this year, up from Rs 56 crore last year.

Another home appliances maker, Whirlpool of India Ltd, hopes that its Vajra Varsham will attract homemakers during this Onam.

With every purchase, the company is offering a range of gifts such as Prestige frying pan to a diamond ring during the season.

Besides, the company is also organising `Onasadyas' in various cities in the State, where selected homemakers will have the opportunity to present their recipe to a panel of celebrity chefs.

Hyundai Electronics, a relatively new entrant into the market, is offering Ela Nivarthu... Sammanam Nedu, meaning `Open and leaf and win the price' during the season. On every purchase of a colour TV, customers can win a range of gifts such as air-conditioners, 15-inch flat televisions and mobile phones.

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