White goods majors line up more freebies for festive binge

Mona Mehta in Mumbai

THE estimated Rs 11,000-crore consumer durable industry, which is growing at 20 per cent per annum, is expected to further strengthen its growth leveraging on the current festive season drive. To cash in on the consumers’ festive buying spree, consumer durable majors are offering off-season and festive season discounts and freebies to increase their marketshare.

Videocon International chairman and managing director VN Dhoot says: “The industry is expected to generate an additional 6-7 per cent growth through festive offers this year.”

In the consumer durables market, the colour television segment is growing at 10 per cent, refrigerators at five per cent and air conditioners at 15 per cent. Last year, the market reported a negative growth. Adds Mr Dhoot: “With growth in other sectors stagnant in the off-season period, the growth of 18 per cent mainly comes from the colour television market. Last year, the off-season industry growth was negligible.”

Of the overall consumer durable market, CTVs contributes Rs 6,500 crore, refrigerators Rs 3,000 crore, cassettes contribute Rs 2,500 crore and washing machines Rs 1,800 crore. Audio systems contribute Rs 1,000 crore and black & white TVs another Rs 500 crore, while microwave and air conditioners contribute Rs 1,600 crore and Rs 1,200 crore respectively.

While the Rs 747-crore Mirc Electronics is offering off-season discounts, the Rs 4,000-crore Videocon International and the Rs 1,668-crore Philips India believe in offering consumer schemes during festive season. To spur the CTV market, Mirc Electronics has embarked on a two-pronged action plan which comprises ‘Onida Loyalty Programme’, meant exclusively for Onida customers, and ‘Onida Display Contest’ targeted at the dealers.

According to Mirc Electronics chief executive officer GS Sundar: “The company will manufacture and market two lakh CTVs at an investment of Rs 5 crore, including the expenditure on advertisements through print media.”

Adds Mr Sundar: “The Loyalty programme has been branded as ‘Onida—offer for life’, which suggests that the customer need not move out of the Onida banner for the rest of his life because Onida keeps introducing contemporary models and helps the Onida owners to upgrade by offering attractive loyalty programmes.”

As part of the Onida Loyalty Programme, consumers can avail of a new Onida CTV set in exchange of an old Onida CTV set at a discount of upto Rs 2,000 and Rs 4,000 depending on the model. The exchange offer which falls under the ‘Rs 4,000-off’ bracket includes three-year warranty at no additional cost and attractive exchange monthly instalments (EMI) with zero per cent interest applicable for 24 months. Nine instalments can be paid in advance.

Highlighting the post-discount offer of Rs 4,000, Mr Sundar elicites an example: “The net price for the old CTV could be lower than Rs 4,000 if considered on the discounted sales price. Thus, on the purchase of 21IQ Onida CTV model priced at Rs 9,990, customers can avail of the product with EMI of Rs 416. On buying a 21 Multiview worth Rs 15,990, customer has to pay Rs 666 as EMI. 21KY Rock priced at Rs 12,990 will require EMI as Rs 541, 21 KY Thunder at Rs 15,990 is available at EMI of Rs 666 and 29 KY Thunder requires EMI of Rs 1,083.”

On the Onida Display Contest, says Mr Sundar: “The company will supply display contest dealer circulars of its3,500 dealers and the tracking formats for the marketing executives to the head office of the company at the end of the activity period. The company will choose the best among the dealers depending upon the large number of Onida CTVs sold during the consumer exchange offer period and reward them.”

Through this, the company aims to add two per cent share to its overall marketshare of 12 per cent in the CTV segment, claims Mr Sundar.

Videocon International is offering five per cent discount along with surprise gifts to its customers on the purchase of a Videocon CTV.
Says Mr Dhoot: “The company plans to sell eight lakh pieces of Videocon CTV worth Rs 1,000 crore, at an investment of Rs 15 crore on advertisements, this festive season. The company usually generates a turonver of Rs 250 crore every month. This festive season will contribute about Rs 350 crore per month .”

Meanwhile, Philips India has embarked on a festive bonanza offer for Ganesh Chaturthi Maharashtra. As part of the offer, with a purchase of every VCD mini hi-fi system, consumers can avail of three VCDs and one MP3 CD for free.

Philips India senior vice-president (consumer electronics) Rajeev Karwal, said: “The company targets sales of VCD mini hi-fi systems to grow by 100 per cent over last year compared to the sales growth by 75 per cent in the overall VCD mini hi-fi systems market, in the corresponding period.” Philips is offeringgifts on purchase of select models of portable CD systems.

Adds Mr Karwal: “The company targets sales of portable CD systems to grow by 50 per cent in a market that is growing at 15 per cent.” The company targets the sales of Philips CTVs to grow 30 per cent over last year compared to the sales growth of 25 per cent in the CTV market.

In Maharashtra, Philips India is offering a special Onam treat to its esteemed customers in Kerala. Customers can avail of this special scheme on the purchase of any of the Philips CTV and mini hi-fi systems.”

To add to the festivities, Philips is offering a three-year guarantee on all its products, with a unique scheme of zero interest loans with a 24-month repayment period, which will be available to its customers in Kerala. Philips special offer prizes comprise Pentium III PCs; Cochin-Dubai return air-tickets; 26-litre Whirlpool micro-wave ovens; Philips mobile phones; Kodak KB10 Cameras, among others.