Videocon battling to target 15% market share in air conditioner segment
India: India’s leading home durables company
is struggling hard on the expansion of their sales network and new product
launches, so that the company can achieve the target of selling six lakh air
conditioner units to capture 15 per cent market share in the segment. In 2015,
the company had a market share of 10 percent, recently introduced eight new split
AC models under ‘ARYABOT’ ranging between INR 34,000 – INR 39,000 with features
like ability to pair up with smart phones and smart watches, allowing GPS
access i.e. switching on and off when the user is entering or leaving the
premises.
According
to TechSci Research, the demand for domestic air conditioners stood at 40 lakhs
units in 2014 and the company is currently having 10 per cent market share, so
to achieve 15 per cent market share, the company should sell six lakh air
conditioners units. The company sold four lakhs air conditioners units in
2015.The new sales target can be achieved by increasing the number of stores,
the company is currently having 7000 stores and stores should be increased by
25 per cent which would help the company in achieving additional 5 per cent
market share and what else the company can do is to add extra additional
features in existing product lines and expanding with new product lines.
According
to a report published by Techsci
Research “India Air Conditioners Market Forecast & Opportunities, 2020”,
the Indian air conditioners market is projected to grow at a CAGR of over 10%
during 2015-20. Accounting for a lion’s share of the air conditioners market,
split air conditioners segment was the highest revenue generator, followed by
VRFs and window air conditioners in 2014. The market share of window air
conditioners has been declining over the last few years on account of
decreasing price gap compared to split ACs, due to which many leading companies
such as Samsung and LG have exited from the windows air conditioning segment
while other major companies like Voltas, Daikin, Blue Star, etc., have lowered
the production of window air conditioners in the country.