Companies

Godrej banks on innovation

| Updated on: Oct 01, 2013

Hopes to boost sales of appliances during festival season

Godrej Appliances is banking on innovation to boost sales during the upcoming festival season. “The overall consumer sentiment is not upbeat. The only way to stimulate demand is through product innovations. We have decided to create exciting products during the festival season as sales promotions are short-lived,” says George Menezes, COO, Godrej Appliances.

Bringing in new indigenous technologies, company plans to launch a premium range of washing machines with an ‘ultrasonic horn.’ “With the horn, we would be offering a new technology to clean stubborn dirt and formidable stains. We are confident that it will be a game changer for the category,” says Menezes. Considering that the durable category already suffers from ‘commoditisation,’ durable players are trying to differentiate their products.

Godrej Appliances plans to peg its new products at a 7-10 per cent premium over the existing models.

Even in refrigerators, Godrej plans to launch a “next world series” with temperature gradients that takes care of specialised food items such as wine and cheese.

Prices

The durable major has also decided to hold on to its prices during the festival season. “We have hiked prices by nearly 7 per cent over the past five months and will stop at further increases. Considering that this has also affected the trade, we plan to give them incentives during the festive season,” added Menezes.

The company has not ignored rural markets as almost 50 per cent of its sales continue to come from this sector. “The rural or mass market can never be neglected as it is used to build volumes, while the urban markets are about building brand value,” said Menezes.

But in the rural markets, factors such as energy efficiency are set to supersede innovation.

“Consumers are not swayed by technology in rural markets. With our Chootu series, we are looking at low-cost options across categories such as cooling and refrigeration,” added Menezes.

A new manufacturing site is also being explored in South India. “We already have our manufacturing base in Pune and Mohali in the North and West. We are now considering a base in South India,” added Menezes. purvita@thehindu.co.in

Published on March 12, 2018

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