Godrej Appliances has entered the premium segment with the launch of its Next Generation Refrigerators, under the brand Godrej NXW (Next World). The new product comes with a unique technology which allows users to customise their refrigerator the way they want by storing food in 3 flexible temperature zones. This innovation has kick-started with the refrigeration segment and will be seen across categories.
Commenting on the launch of its new premium brand NXW, Kamal Nandi, Business Head and EVP, Godrej Appliances said, “We were present in the mass premium category with our brand Eon, but with the launch of the NXW range, we will now be attacking the super-premium category. We are now entering the 350+ litres category with the intention to position it in the lives of the consumers with a real purpose.”
An excerpt from an interview with Kamal Nandi:
What is the USP of the new product?
The uniqueness of the NXW product is in its flexibility. A total of 36 combinations are possible in one refrigerator. It comes with innovative technology, design and feature. We conducted a study and found that people want to live the real social life and today’s gadgets are not really supporting all that. They are supporting online and we are looking at doing things offline. Our challenge was to how can we bring people offline and create an opportunity for them to meet. For example, depending on the tastes of your guests and requirement, you can change the settings of the refrigerator. You can even convert the entire refrigerator as chiller or a pantry. The reason they are called NXW is because we believe these will be the expectation of the next world. NXW is a series of appliances that we will launch and refrigerator is the first category which got launched today
You have entered the super-premium segment and the 350+ litres category with launch of the Next Generation Refrigerators. Are you not late in the race?
We are going in a phased manner; we started with the mass premium brand Eon, then established ourselves very strong there, and got our shares equal to the mass segment. Now we want to attack the super-premium category and there also in the next few years, would like to establish ourselves as a strong player.
Who are your competitors in this category?
It is mainly the multinationals, because they have been bringing products from the overseas market and launching in this segment, which may not be completely relevant to our Indian lifestyles, habits and tastes.
What is the size of the appliance industry and what is the rate of growth?
The size of the industry is Rs 30,000 crore and last year, it grew by 29%, largely led by the cooling categories, in which refrigerator accounted for 33% growth and AC grew by 34%. In this intense competition, Godrej Appliances has been able to grow faster than the industry by 36%. We believe that it is only through innovation that differentiation can be created in this industry. The 350+ segment is around Rs 1,000 crore and we are targeting a market share of 15% in the next three years. Without being present in this segment till now, we enjoyed a market share of 16% in the overall refrigeration category.
What is your marketing strategy?
We are going to be present on the traditional mediums largely, digital, GEC, News and mostly on all the places where people socialize. Our intent will be to bring people together. The famous urban pair of Sam & Meera will be seen on the TVCs which will soon hit the air waves. They are used across all product categories, basically to bring the multiplying factor of visibility of our products. The way of interacting and using them has been different for different products. For the latest range of communication, we are trying to build a different tonality of addressing the super-premium segments. There will be one 45 second edit which will talk about the whole platform and two 20 second edits, which will communicate the sharper benefits of the products.
What is your advertising spends and the splits between the different mediums?
The advertising spends will be around Rs 10-15 crore in the next 6 to 9 months for the first half of this campaign. Usually we spend around 10-15% of our spends on the digital, this time also we will, but the way we communicate will be different.