As part of its growth strategy, Electrolux India has made a foray into the product category of kitchen appliances with the launch of ‘oxigen hoods’ and ‘nutrition hobs.’ It has unveiled six models of ‘oxigen hoods’ and four models of ‘nutrition hobs.’ The company has planned to introduce the new category in top 10 cities by mid-2005.
The combination of a hood and hob that accounts for over 80 per cent of the category sales is available at a price range of Rs 25,000-50,000. Electrolux's entry into the new category is in line with company's strategy to position itself as a complete home appliances specialist brand. Electrolux in the recent past had entered high growth segments like microwaves and air conditioners. With an eye on potential automatic front-loading washing machine segment, it has launched five new models in the segment.
"Currently small but upcoming category, built-in kitchen appliances, is poised to grow over 35 per cent per annum. Raising aspirations of the urban and semi-urban consumers, real estate development, changes in lifestyles and altering consumer demand will further fuel the growth of this industry," said Ajay Kapila, VP Sales and Marketing, Electrolux India.
He added, “The 95 per cent of our revenue came from refrigerators prior to 2004. This year 30 per cent will be attributed to new product categories like microwaves, air conditioners, washing machines and now kitchen appliances. We are not only introducing technology but also brand ideas.”
Electrolux has drawn a comprehensive marketing and distribution strategy. Besides allocating a dedicated sales team to market the new products, it will target the prominent construction houses, architects and new apartments with special kitchen packages. Unique merchandising with consumer durable retail outlets will also be worked out in addition to direct marketing. Electrolux will also undertake consumer education programme through architect and consumer meets in metros.
The Rs 150-crore kitchen appliance market in India growing at a rate of 40 per cent and is expected to touch Rs 400 crore by 2007. Residential boom is one of the primary factors driving the market. And it is this area that Electrolux is aiming to capture.