Rise of High Priced Appliances - a new mark of luxury!!

New-age open kitchen is transcending many age-old boundaries – social and cultural. Today, it is merging seamlessly with people’s living spaces – and this has given rise to a new set of choices for home makers. The open kitchen and a slew of luxury appliances therein are the latest fashion statement of modern home owners.  

As the Indian luxury market is getting more refined, just owning a luxury apartment and car seems to be inadequate and it's getting reflected in the kitchen, which is fast-moving to the living room as a mark of luxury. Much like they would do with mobile phones, cars or a home, consumers are now buying premium home appliances to make a lifestyle and fashion statement.

The consumers buying habits are now shifting from functionality to aesthetics as they are now equally concerned with showing off their appliances in their open kitchens. Companies like Philips, Westinghouse, Panasonic, Kenwood and Morphy Richards understand this and are launching premium models with advanced features that appeal to customers at the top of the pyramid. The biggest consumers of these premium products are high net worth individuals as well as young upwardly mobile couples with high disposable incomes in tier 1&2 towns. These products are also an aspiration for the growing middle class population in smaller towns.

A price segment study of the Grinders category by Market Pulse shows that the contribution of the premium category is quiet significant as it contributes 10% in the Mixer grinders' sales and 14% in the Juicer mixer grinders' sales. 

The contribution of premium category even in the class 3-4 & 5-6 towns is approximately 15% &7% respectively.

Brands like Philips, Kenwood and Westing house market premium category induction cookers priced at Rs.3500+. 

By adding unique features to its products, premium appliance makers have cut out a niche demand segment and created a distinct visibility! 

Emerging Kitchen Trends

The gradual waning of the wall between a cooking and living space has become de rigueur in recent times, leading to the introduction of open kitchens in Indian homes.  In the transition from the old to the new, traditional to modern, the most significant changes have been in our kitchens. And they have become big, bold, and beautiful. And Open! 

      

Giving the house an elegant, modern and spacious look, an open kitchen is easily accessible, and moms and nannies can keep a better lookout on toddlers and domestic help. Not only can more than one person work in the open kitchens, the people working in the kitchen can also feel a part of the conversation going on in the house. Another important appeal of open kitchen is its airy, spacious size helping in minimize risks associated with accidents. Quite unfamiliar in past, open kitchens also impact the kind of kitchen appliances consumers are buying.

After conducting a survey on the impact of open kitchen on appliance buying habit among a sample of 150 people living in apartments and newly built houses, Market Pulse has found that majority (67%)of the new home owners have an open kitchen and 63% would prefer to have one in future. While all the respondents agreed that the choice of appliance being bought is influenced by their kitchens, 92% said that they will match the décor of the dining/living area with the appliances they buy for their kitchen.

Here is some more insight into consumer preferences

Aesthetics of an appliance play an important role in consumers' buying decisions
The features, size and design of the product are critical purchase criteria followed by price. Many prefer sleek appliances to go with the aesthetics of the house 
The brand of the appliance is an important criterion as it adds to status while lending credibility to the appliance 
Some consumers have started looking at energy efficiency as an important criterion when buying a product.

                       

People having open kitchens attach more importance to design and color of the appliance. Energy efficiency of the appliance was also considered a very important purchase criterion.

In keeping with this trend, Electrolux recently launched its water purifiers in vibrant colors to cater to the aesthetic needs of consumers. Breakfast appliances like pop-up toasters, hand-blenders, coffee makers are now displayed on dining tables as they come in many attractive colors and sleek designs. Brands like Philips, Morphy Richards, Prestige, Orpat etc. are introducing smart looking irons, toasters, grinders, and coffee makers which are both energy efficient and eye catching.          

Urge to purge contamination grows, water purifiers gain popularity

Quench your thirst with safe drinking water! At a time when cry for safe water is being echoed everywhere, the purifier markets in India have come to the rescue of people. Population growth juxtaposed with rapid industrialization is taking a heavy toll on environment leading to contamination of drinking water. 

A recent report by Market Pulse, Opportunities in the Water Purifier Market in India reveals an increasing trend of the demand for water purifiers in the market. The report says the market is set to grow 229%, up from INR 18.64 billion in 2012 to INR 61 billion in 2017.

Going by a UNICEF study, nearly 67% of the Indian households do not treat drinking water. Many, who treat drinking water, are found to be relying largely on age-old boiling method. This situation has given rise to the water purifier market recording accelerated growth over the last 5 years. This growth has further been accentuated by the advent of inexpensive offline or gravity-based water purifiers in the range of Rs. 1000 to Rs 2000. These purifiers have penetrated the bottom of the pyramid households effectively.

Approximately 70% of the country’s RO water purifier market is dominated by players like Eureka Forbes and Kent under. In addition to being the pioneers, they have developed the market by continuous expansion of the distribution network and introduction of new products. The offline water purifier market is dominated by Pureit water purifiers from HUL; the other significant player is TATA Chemicals’ Swach.

TTK Prestige, which is likely to launch a range of water purifiers in collaboration with a foreign partner, is likely to fuel the competition. Multi-level marketing companies such as Tupperware and Amway have also launched offline water purifiers.

Emergence of new trends and advent of new technology has resulted in remarkable changes in Indian water purifiers market. The Market Pulse report presents the challenges and opportunities in this market.

Market Pulse Blog: A new beginning

In a recent piece on Market Research, The Guardian wrote, “Whatever sector you're in, understanding the cultural, social and economic context in which you're trading is crucial. You'll need to know about the local area, what your competition is, and what people will be prepared to pay for your product or service.”

Talking on the relevance of research for small businesses, the piece refers to many experts who all consider research a critical component for prudent decisions. At Market Pulse, we have constantly strived to help our business partners comprehend the many cultural, social and economic factors that determine buying decisions and consumers’ preferences. 

Little surprise, with our diligent efforts and focused deliveries, Market Pulse has emerged as the leading market research company in the small appliances, building electrical product and stationery domains. A large number of reputed companies already rely on our monthly audit reports.

Market research reports prepared by our firm are based on extensive sample surveys among distributors and retailers, customers and purchase influencers as well as information provided by manufacturers and regulatory organizations.

While Market Pulse is fortunate enough to interact with industry leaders on a daily basis, we now want to hear what it is that you have to say. Through this blog we will be able to share with you new research findings and other interesting happenings in the world of research.

We hope you will stay tuned in and give us your valuable inputs. Write to us on this post and other views at: business@marketpulseindia.com

Yours truly: Ejaz Hoda and team

Valetines Day Special!!

Can Money Buy Love?

Valentine’s Day Special

Love is in the air and everyone seems to have been bitten by the love bug. We couldn’t help but jump on the love bandwagon. Market Pulse decided to conduct a survey across 3 cities to see what makes everybody’s hearts melt on Valentine’s Day.

Lovers not haters…

Market Pulse spoke to 296 romantics aged 16-35yrs, 78% of which were women. Majority of the romantics were between 31-35yrs. 59% of the total had an MHI of more than Rs. 50,000.

Awareness of Valentine’s Day:

97% respondents were aware of what Valentine’s Day is. Age groups 16-18yrs and 23-25yrs had 100% awareness with 5% not being aware in 26-30yrs age segment.

Special plans:

The most popular way of showing one’s affections seems to be that of buying a gift. While gifts are the most popular they seem to hold most water with 16-18yr olds (100%) and 19-22yr olds (71%).The slightly older counterparts (23-25yrs and 26-30yrs) prefer movies and the 31-35yr olds prefer to go out and eat as an alternative to/along with gifts.

Candy Hearts and Pretty Bouquets….

Respondents said they were most likely to delight their “someone special” with cakes or flowers (44%).