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“Nobody is king forever, particularly in the consumer durables industry,” says Gul Mirchandani, Chairman and Managing Director of MIRC Electronics, which owns the Onida brand.
Onida TV, with the famous tagline ‘Neighbour’s envy, owner’s pride’, was king once upon a time. But the crown on Onida’s head was knocked down by the entry of a slew of international brands.
“Nokia was king in mobile phones, then came Blackberry, then Apple came and now Samsung is king,” he told Business Line in an interview. “Another market leader may emerge tomorrow.”
According to Mirchandani, 70, a mechanical engineer by training, the key to success in consumer durables is constant innovation. “You need to keep on innovating and offer better and user-friendly products to the consumers.” For this, R&D capabilities and ‘fresh blood’ are necessary.
Onida is now focusing on three main products — flat panel TV, washing machines and air-conditioners. “We are an Indian company and we know the Indian consumer’s mind.”
For instance, he said, the air-conditioner owner loved to step into an already cooled room as soon as he entered home. To meet this need, Onida had an air-conditioner that could be switched on by an SMS by the owner well before he arrived home.
Since the collars and cuffs of men’s shirts get soiled easily, Onida has the washing machine fitted with brushes that take care of the collars and cuffs. And, Onida flat panels were android-enabled to give a better user experience. “These are the ways we serve the customer’s special needs and desires — by constantly innovating,” Mirchandani claims.
The Indian customer, he points out, is very price-sensitive, but at the same time is quality-conscious too. “We want our customers to be proud of the Onida they own.”
The brand, which Mirchandani claimed to have 8 per cent share of flat panel market, 5 per cent of washing machines and 9 per cent of air-conditioners, would concentrate on the domestic market. He had recently hired a CEO who had for long worked for a leading international brand to give a new orientation to the company.
“Onida will be a $1 billion-company in a few years,” he says confidently. As of now, the turnover was Rs 1,300 crore. There was a huge market potential for flat panels, air-conditioners and washing machines waiting to be tapped. Though 65 per cent of households were TV-penetrated, more were now opting for a second TV. More rural households were buying washing machines, and affluent households were equipping their every bedroom with air-conditioners (unlike just the master bedroom in the past).
Well, Onida wants to be the neighbour’s envy again.
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