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Crompton Greaves Consumer Electricals Ltd (CGCEL) expects its premium fan category to maintain a strong double-digit growth helping boost its overall fan sales and market share in the near term.
The company’s premium fan segment has been growing at about 50 per cent over the past couple of years and the share of premium fans (priced above ₹2,500) in the company’s overall fan sales has increased to 20 per cent now from about seven per cent two years ago. It is now a leading player in this segment and also claims a leadership position in the South.
Go-market strategy
CGCEL sees huge headroom to grow the premium fans business through innovative products. It also believes that deeper penetration under its go-to-market programme will help fetch more sales.
“With our go-market strategy and favourable opportunity to increase our current penetration, we expect the premium fans to drive stronger growth and help grow our market share,” said Mathew Job, Chief Executive Officer, while unveiling company’s new range of fans under a brand ‘Air 360’ and window cooler under the name ‘Tricool’.
The company’s market share in the domestic fan market grew to about 27 per cent from about 24 per cent two-three years ago. “About 90 per cent of this market share growth was driven by our premium product anti-dust fan, launched one-and-half years ago,” he added.
Job also said the company was outpacing industry growth in fans. As against industry growth of 6-8 per cent, CGCEL was recording a growth of 11-12 per cent in every quarter, barring the ones that witnessed demonetisation and GST implementation.
To support its growth plans and create better visibility for its new range of products, the company has increased the advertisement budget to ₹50-60 crore a year from about ₹10 crore annually two years ago.
The company’s Air 360 range of fans come at price points of ₹2,375 and ₹2,575. The product promises coverage of 50 per cent more space in a room. Priced at ₹12,500, the Tricool window cooler also promises 60 per cent more cooling than other brands.
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