An early summer and an inspiring growth last year have encouraged consumer durable players to plan aggressive volume expansions. B&E takes a look at the ‘cool’ factors that will enable them to beat the heat by Neha Saraiya
Dial up Shantanu Das Gupta, Vice President, Corporate Affairs & Strategy, Asia South, Whirlpool India and he responds back stating, “Hey, I am currently traveling to Singapore…” The rejoin is not so dissimilar to the one we get from Haier (world’s 4th largest white goods manufacturer), whose top officials; including Eric Braganza, President, Haier India and Shanta Roy, AGM- Marketing are currently busy attending meetings at their headquarters in China. Even LGEIL’s MD Moon Bum Shin was in Korea recently.
What is the agenda of their voyages? Not a holiday for sure! The destinations of these head honchos of consumer durable giants may be different in terms of geography, but their agendas are pretty much on the same lines. With summers setting in and the scorching heat taking the mercury to new highs, this is the ideal time for consumer durable players to crank up on sales volumes. And with last year’s growth trajectory of 10-20% (because of numerous reasons like the stimulus packages, improved inventory management, unvarying input costs, pay revision of central government employees and steady prices) inspiring them to reach greater heights; these players are all geared up for a buoyant summer season ahead.
The Indian AC and refrigerators market is expected to clock 3.2 million units & 6.2 million units respectively by the end of 2010, but the major chunk of sales for consumer durable players comes in the months of April-June. Growth in the air- conditioners segment in Nov-Dec 2009 was just 3% and in refrigerators, it was 2%.The major rationale for this bullish growth is the penetration level of these product categories; which is generally around 3:1(which means that potential for every home with one Television is around three ACs) combined with the weather factor. Sensing the same, all durable players are riding on the growth prospects and laying out plans to clock almost 25-30% of their annual business from this season. Kamal Nandi, Vice-President (Sales & Marketing), Godrej Appliances, points out his plans to take on the heat in an exclusive interview to B&E, “Generally we sell around 4.5 lakh refrigerators during this period but because of upbeat growth rates of 30% in the last year, we are not only targeting a 40% growth this year but also ramping up our production levels by 1.5 lakh refrigerators in this season.” The company has strongly positioned itself in the minds of consumers as well as dealers by extending its combo offers in the pre-festive season itself.
Dial up Shantanu Das Gupta, Vice President, Corporate Affairs & Strategy, Asia South, Whirlpool India and he responds back stating, “Hey, I am currently traveling to Singapore…” The rejoin is not so dissimilar to the one we get from Haier (world’s 4th largest white goods manufacturer), whose top officials; including Eric Braganza, President, Haier India and Shanta Roy, AGM- Marketing are currently busy attending meetings at their headquarters in China. Even LGEIL’s MD Moon Bum Shin was in Korea recently.
What is the agenda of their voyages? Not a holiday for sure! The destinations of these head honchos of consumer durable giants may be different in terms of geography, but their agendas are pretty much on the same lines. With summers setting in and the scorching heat taking the mercury to new highs, this is the ideal time for consumer durable players to crank up on sales volumes. And with last year’s growth trajectory of 10-20% (because of numerous reasons like the stimulus packages, improved inventory management, unvarying input costs, pay revision of central government employees and steady prices) inspiring them to reach greater heights; these players are all geared up for a buoyant summer season ahead.
The Indian AC and refrigerators market is expected to clock 3.2 million units & 6.2 million units respectively by the end of 2010, but the major chunk of sales for consumer durable players comes in the months of April-June. Growth in the air- conditioners segment in Nov-Dec 2009 was just 3% and in refrigerators, it was 2%.The major rationale for this bullish growth is the penetration level of these product categories; which is generally around 3:1(which means that potential for every home with one Television is around three ACs) combined with the weather factor. Sensing the same, all durable players are riding on the growth prospects and laying out plans to clock almost 25-30% of their annual business from this season. Kamal Nandi, Vice-President (Sales & Marketing), Godrej Appliances, points out his plans to take on the heat in an exclusive interview to B&E, “Generally we sell around 4.5 lakh refrigerators during this period but because of upbeat growth rates of 30% in the last year, we are not only targeting a 40% growth this year but also ramping up our production levels by 1.5 lakh refrigerators in this season.” The company has strongly positioned itself in the minds of consumers as well as dealers by extending its combo offers in the pre-festive season itself.
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Source : IIPM Editorial, 2010.
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
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