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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 ResearchIndia 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.

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