Manufacturers switch off models with low energy efficiency

Premium products are the focus across consumer electronic and white goods.

With urban consumers increasingly willing to shell out more in terms of the upfront price for buying an energy efficient product with a higher ‘star' rating, manufacturers are taking the cue.

In case of tube lights, for instance, manufacturers such as Philips and Osram have phased out their cheaper two-star models and now have a three-star rated product as their entry-level offering in the bigger cities and towns. White goods manufacturers such as Samsung and Panasonic too are also reporting strong growth in demand for their top star-labelled models in categories such as refrigerators and air conditioners. This is despite these models costing 20-40 per cent more than the ones with lesser number of stars.

The BEE Star Energy Efficiency Labels indicate the energy efficiency levels through the number of stars highlighted in colour on the label, wherein one star signifies the least energy efficiency and five stars the most.

“Companies such as Philips and Osram have phased out their two-star models from the tube light market. While consumer demand is prompting these changes, it is encouraging to see that manufactures too are taking the cue,” said Dr Ajay Mathur, Director General of the Bureau of Energy Efficiency (BEE), which is behind the star labelling programme.

He said that by choosing products with higher number of stars, consumers are beginning to look at the lifecycle costs and not just the upfront cost.

LG and Samsung, who were among the first to launch energy labelled appliances such as refrigerators and air conditioners in 2008, corroborate the trend.

According to Mr Ravinder Zutshi, Deputy Managing Director, Samsung India, “Last year, almost 15 per cent of all our air conditioners sold were five star-rated. Consumers are convinced about their long-term value and hence buy the products even while paying a premium.”

Rising demand

The company hopes that this year 18 per cent of its AC sold will be the highest star rated models.

Panasonic too has introduced energy-saving “eco” products that use inverter technology, a technology incorporated in the motors of air conditioners, washing machines and refrigerators, to reduce energy consumption.

Mr Manish Sharma, Director, Marketing, Panasonic India, said, “In other countries government gives subsidy for manufacturing energy-efficient products. We hope India too catches up with this trend as more and more consumers are opting for energy efficient devices. It will help in increasing the penetration levels”.

According a recent Consumer Electronics and Appliances Manufacturers Association report, the demand for more energy efficient products is on the rise. “…There is a high demand for star rated products; consumers are aware about the benefits and ready to shell out more for a star rated product especially for air conditioners and refrigerators. Premium products are the focus across categories.”

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