• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• BL Club
• Smartbuy

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

— Ch. Vijaya Bhaskar

Sales of LCD televisions have tripled in the past year.

Bindu D. Menon

New Delhi, Oct. 6 Hit by high inflation and rising input costs, consumer durables majors are looking to boost sagging revenues by unleashing a slew of products in the premium-end category this festival season.

With the premium-end market growing by nearly 30-35 per cent annually, the companies have drawn a strategy to primarily focus on this segment.

“The period starting from Navaratri onwards is crucial for any company. As much as 35 per cent of the sales happen during the festival season. For companies it is also a period when it can actually subjugate buying decisions besides introducing a basket of products,” said Mr Ravinder Zutshi, Deputy Managing Director, Samsung India.

He said the company is launching a series of high-end LCD television and home theatres.

“The implementation of the Pay Commission for government employees coupled with the festive mood will set the ball rolling. The IIP data also suggests that despite a slowdown in the market, the durables segment is growing.”

Rival durables major LG India is also upping its ante to capture a chunk of the market.

Besides new launches in the high-end bracket, the company is extending its warranty on refrigerators, televisions and fully automatic front- loading washing machines.

Mr V. Ramachandran, Director, Marketing LGEIL, said, “The premium category is showing a phenomenal growth compared with entry level models. The upcoming line of products has a host of new features that have been introduced as a result of company’s sharp focus on bringing ‘consumer relevant innovation’ to Indian homes. This extended warranty programme comes as a bonanza amidst the festive season.”

With this extended warranty programme and new product offerings, LG plans to increase refrigerator sales by 20 per cent and enjoy a market share of 26 per cent by this year end.

“Top loading washing machines will contribute 30 per cent of our total sales of washing machine by end of 2008 and increase our market share by 5 per cent,” he said. Sales of high-end products such as LCD televisions have tripled in the past year.

Premium end models are growing compared with entry models which are seeing a slow growth. This makes it prudent for companies to go for higher end models.

“Despite being low on volume, these products make up for sales,” said Mr Kamal Nandi, Vice-President, Sales and Marketing, Godrej Appliances

Haier Appliances India has announced its plans for the festive season with a mega festive promotional package ‘Haier 6000 guaranteed offer’ where the customer is entitled to a scratch card and could win from cash back of Rs 6,000 to attractive gifts.

Mr Pranay Dhabhai, COO & Whole Time Director, Haier Appliances India, said, “Come October, people in India get into celebration mode.

“Despite the fact that rising input costs are putting a pressure on margins, we are confident of reinforcing our market position and are looking at a growth of 150-200 per cent over the last season.”

More Stories on : Marketing | Personal Products | Strategy

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line