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Appliances Sector Hand in Glove with Kitchens

Global multinational companies, which dominate the Indian kitchen appliances sector, are shaping consumer lifestyles through product innovation and smart marketing, thereby driving growth in the modular kitchen industry

The domestic Appliance and Consumer Electronics (ACE) market is estimated to have expanded to Rs 210,000 crore in FY 2018 and is set to grow at a CAGR of 9%. The cooking appliances segment, which accounted for 7.2% of the ACE market in the last fiscal, will grow at a faster rate than the overall ACE market, states a Research And Markets report.

This promising outlook is attracting foreign MNCs to firm up their presence in the country.

BSH Household Appliances’ India unit has declared that it will invest a hundred million Euros in the next five years, mainly for new factories, R&D and brand development. The company is aiming to be one of the leading home appliance entities on the domestic turf by 2025 with a double-digit market share. BSH is also aiming to grow its network of franchise-based exclusive stores and will have more than 100 outlets of Bosch and Siemens collectively by next year.

BSH has launched a small appliances category, and freestanding microwave ovens. It has brought its luxury brand Gaggenau to India, which offers an entire range of built-in refrigerators, dishwashers and cooking appliances.

Whirlpool India entered into a joint venture with Elica SpA Italy last year, to acquire 49% of the latter’s Indian subsidiary Elica PB India. This move is in line with Whirlpool’s strategic priority to expand the cooking and built-in appliance portfolio.

Elica will augment its network of 2,000 retail outlets and 60 distributors by 20-30%, to tap the demand for kitchen appliances arising from category B cities including Madurai, Coimbatore, Nagpur, Kolhapur and Mangalore.

Whirlpool has unveiled the Jet C range of convection microwave ovens, which address the need for healthy cooking. These appliances enable consumers to cook fried food in near-zero oil in just two minutes. This innovative range of microwaves is a blend of European design and intuitive 6th Sense Technology.

IFB has strengthened its presence across all markets by building a network of 750 exclusive stores branded as IFB Point, where it displays built-in ovens, chimneys and hobs. This channel is a key driver for IFB’s growth in this category and accounts for 50% of sales of this set of products.

Claiming to be the third largest player in the microwave category with a market share of around 20%, IFB has rolled out new models featuring unique ‘Oil-Free Cooking’ technology in the microwave ovens category. It has also started a ‘microwave cooking class programme’ under the brand name Spice Secrets, which educates customers about optimising microwave oven usage.

The Rs 2,189 crore major has operationalised its modular kitchen stores in Goa, Bengaluru and Kolkata, where it has displayed modular systems featuring food-grade, termite resistant and boiling water-proof plywood. It is strengthening its organisational structure for retail design to expand this business and aims at having 8-10 stores soon.

Franke Faber India Pvt Ltd (FFIPL), a wholly-owned subsidiary of Franke Group, is aiming to breach the Rs 1,000-crore turnover mark in the next five years. FFIPL is upbeat about its Platinum experience centres, which showcase its premium kitchen appliances portfolio. The company plans to have 25 Platinum stores within the next few months, as a part of a strategy to consolidate its position in the premium segment. FFIPL also intends to leverage its manufacturing infrastructure to make India an export hub for other global markets. Also, it has launched the virtual showroom that offers a real-life experience of the Faber showroom and its products, besides helping the company strengthen its premium imagery and overall brand position. This implementation is part of the company’s digital transformation journey.

Hettich India has forayed into the built-in-home appliances category a year ago. The company is marketing the Blaupunkt brand, which comprises hobs, hoods, ovens, microwaves, dishwashers, and warming drawers. The brand is being positioned in the mass premium (between mass and premium) segment, while the company is taking the B2B approach by tying up with prominent kitchen OEMs and builders. HePo has put in place a service infrastructure in the metros, and tier-I and II cities including state capitals, and is importing the products from Europe, keeping in mind Indian conditions.

Häfele marked the launch of its in-house appliances business, by opening its first exclusive design showroom in Bengaluru. The showroom showcases the entire range of Häfele premium appliances for cooking, baking, refrigeration and cleaning, besides extraction hoods and countertop appliances.

Hafele has consolidated the various appliance brands of its partners and subsidiaries under one global umbrella brand – Hafele Appliances since appliances have become an important business segment across 30 countries where it operates. The company will cater to different market segments with two distinct product lines, viz International Luxury Appliances and Hafele’s In-house Premium Appliances. The international range comprises of the Asko, Liebherr and Falmec brands. The in-house range includes premium built-in, freestanding and countertop appliances that have been developed keeping Indian cooking and cleaning patterns in mind while retaining the German aspects of quality and innovation.

These and other developments signal a heightened interest in the kitchen appliance space and augur well for the kitchen industry.


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