German refrigeration and cooling appliances specialist Liebherr is eyeing the luxury Indian market. Spurred by findings of a recent report by Transparency Market Research (TMR) on the global electrical appliances market, the company’s Indian subsidiary Liebherr Appliances India Pvt Ltd plans to introduce a host of feature-rich models in India in the coming three years.
“We have been present in the domestic refrigerator and freezer market since 2008 in various segments such as built-in refrigerators and freezers, side by side appliances with different cooling zones, special wine cabinets, under-counter fridges and freezers, all of which have been targeted at the HNI clientele,” informed Radhakrishna Somayaji, chief sales officer of Liebherr Appliances India. Somayaji said that that the company will introduce 19 different models of refrigerators in various colours and feature combinations in 2018 to target the mass premium segment. “In 2019 we will add around 22 models. Eleven additional models for wider refrigerator availability will be added in the next three years,” he informed.
The TMR report cites India’s rising household income, improving living standards and availability of lucrative product offersto make a case for the Indian appliances market. According to Somayaji, “Kitchens in Indian homes are getting a makeover, as a result of which this is turning out to be a premium segment and attracting global brands. Spending on premium Indian kitchens now averages around Rs 40-50 lakh, and therefore we believe there is a market for premium appliances to complement these kitchens.”
This assessment is mirrored in the Confederation of Indian Industry trend report, which states that the Indian luxury market has grown from $14.7 billion to $18.6 billion at a rate of 25% year-on-year. Burgeoning aspirations and a growing sense of brand consciousness are driving growth of the luxury sector in India.With rising disposable income, change in spending pattern of the youth, and a global lifestyle, the consumption pattern is moving towards more sophisticated and refined tastes.
Somayaji adds that India has been an important market for Liebherr and the company is keen on exploring the opportunities to realise its potential here. In particular the markets of New Delhi & NCR, Chandigarh, Ludhiana, Jalandhar, Kanpur, Agra, Bhopal and Lucknow are being identified as home to a rising number of affluent Indians and some of the richest families. “We have observed more than 80-90% growth in sales year-on-year in the north India market since the last four years. Our key clientele mostly belongs to major cities in north India like New Delhi & NCR, Chandigarh, Ludhiana, Amritsar, Ghaziabad, Agra, Kanpur, Varanasi, Aligarh, Jaipur, Jammu, etc.” North India accounts for close to 40% of Liebherr India sales, with Delhi & NCR in the lead, followed by Punjab and Haryana and other surrounding catchment areas.