Consumer durable majors are vying for a pie of the premium product market this festive season. With festivities round the corner, the companies are busy giving final touches to their business strategies. The buzzword for their promotional schemes this year will be the 'premium product segment'. Top-end products will also gain focus during the festive product launches, even in semi-urban and rural markets.
“This year, the focus will be on the high-end product segment, especially in the festive period. During this time, consumers have a lot more disposable cash, the mood is upbeat and they tend to upgrade their products.
This is seen in both urban and rural markets. Hence, it is a conscious decision to focus on such consumers,” LG Electronics India head (sales) Girish V Rao told ET. The mood is same for Samsung, Philips, Sony, Sharp and Haier.
LG is about to launch four new models of LCD and Plasma TV sets, and three new models of hi-end refrigerators and washing machines. The company's forthcoming promotional offer will also reflect on pushing these product sales. Needless to say, the lion's share of LG's festive sales target of Rs 2,800 crore is expected to be met by the premium products.
Haier Appliances India's director Pranay Dhabhai said: “Though we are launching products across the segment, the hi-end is surely the flavour of the season. The upgrade phenomenon will pick up this year since most of the big markets have a relatively high penetration level. This way, our promotional offer will also be unique this time.”
Samsung is tipped to enter a new premium product segment this year during the festivities. Sources said other prominent players like Sharp is soon going to unveil its new Aquos brand LCD TV sets for the festive shoppers and Sony, too, has plans to introduce its latest LCD TV line-up for India.
However, none of the players are completely ignoring the low and mid-end of the market, where volumes rule.
“However, margins are much more from the premium segment and hence that is what which is now gaining focus. At Philips, this segment is expected to contribute about 25% of our total festive sales, against 15% last year,” said Gunjan Srivastava, director (entertainment solutions), Philips Electronics India.