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Videocon launches its fourth brand `Sansui`
New Delhi, May 07: Videocon group has decided to pitch its fourth appliance brand in the domestic consumer durables industry. Along with its mother brand `Videocon`, `Akai` and `Kenstar`, it will now have `Sansui` branded airconditioners in the market. The products, which will be sourced from the existing plant at Aurangabad and another group sourcing point in Uttaranchal, will roll out in the second season for airconditioners which starts in September-October.
New Delhi, May 07: Videocon group has decided to pitch its fourth appliance brand in the domestic consumer durables industry. Along with its mother brand ‘Videocon’, ‘Akai’ and ‘Kenstar’, it will now have ‘Sansui’ branded airconditioners in the market. The products, which will be sourced from the existing plant at Aurangabad and another group sourcing point in Uttaranchal, will roll out in the second season for airconditioners which starts in September-October.
However, the positioning of the brand has not been finalised. It is learnt that the brand is mulling over three options — health, pricing and technology —, and the blueprint is expected to be finalised shortly. Interestingly, Sansui is not into ACs globally. Anil Khera, director of Sansui India, said: ‘‘Our license for India allows us to produce and sell any product which is currently under the group portfolio and given the booming AC market here we felt there is space for more brands.’‘
The domestic AC industry has been growing in double digits for the last few years as prices have crashed. Due to competition and consumers graduate from coolers.
In fact, as reported by ET earlier the growth being clocked in the industry has been attracting new brands every year to grab a piece of the action, howsoever small. The market is still ruled by top 4-5 brands. Incidentally, Sansui was initially planning to get into appliances starting with refrigerators and washing machines but had dropped the idea given the low margins.
Videocon group had been using a multi brand strategy in the Indian market when other MNCs have been moving in the reverse direction. The idea being that in the Indian durables market no one brand can rule the roost after a point of time and there is always a space for another brand to enter. For instance in colour televisions even though none of the Videocon group brands figure among the top three positions, all the brands combined makes it the biggest player in the market which also gives it a leverage in bargaining for components and economies of scale in manufacturing. Another phenomena which has been noticed in the last 2-3 years is the product portfolio expansion by different companies. So a CTV brand is also selling AC and washing machine. Insiders point out that this follows from the bargaining power generated which helps in product bundling when selling to the dealers. Bureau Report
In fact, as reported by ET earlier the growth being clocked in the industry has been attracting new brands every year to grab a piece of the action, howsoever small. The market is still ruled by top 4-5 brands. Incidentally, Sansui was initially planning to get into appliances starting with refrigerators and washing machines but had dropped the idea given the low margins.
Videocon group had been using a multi brand strategy in the Indian market when other MNCs have been moving in the reverse direction. The idea being that in the Indian durables market no one brand can rule the roost after a point of time and there is always a space for another brand to enter. For instance in colour televisions even though none of the Videocon group brands figure among the top three positions, all the brands combined makes it the biggest player in the market which also gives it a leverage in bargaining for components and economies of scale in manufacturing. Another phenomena which has been noticed in the last 2-3 years is the product portfolio expansion by different companies. So a CTV brand is also selling AC and washing machine. Insiders point out that this follows from the bargaining power generated which helps in product bundling when selling to the dealers. Bureau Report