At Crompton we have already identified the kitchen as our strategic space
Nitesh Mathur discusses Crompton inception in the kitchen appliances market and the way forward.
How do you see the consumer’s demand for statement kitchens? What kind of opportunity does it provide for you?
After Covid-19, people have realised how important their kitchen is, and they have placed a great deal of emphasis on the appliances they need, in the realm of upgrading their kitchens. In India, the built-in kitchen appliances market is ~INR 2200 Cr and is estimated to be growing at ~10- 15% per year. The organized market is made up of 7-8 players with the top 3 players, commanding ~45% of the market. The penetration of the category is quite low. Chimneys, the lead product in the segment also has a penetration of only 3-4% offering ample room for growth. Crompton believes in launching products based on clear consumer insights.
The company undertook extensive consumer research to identify the unmet & underserved requirements of the consumer. Based on these insights, the company is launching truly differentiated products that will be relevant to the consumer. The endeavour will be to provide a pleasant and enjoyable kitchen environment.
We have already identified the kitchen as our strategic space. So, we are moving into this area. Our product ranges have a higher purchase intent and hence, we are very confident this year that we will be able to do better than the competition in the market of kitchen appliances. Likewise we are working on our marketing plan which is almost ready. We have started disseminating the information developed in our store. We are having a sequence of launches in all the high density clusters and going to have approximately 20 to 30 stores which will be up within a month’s time. Apart from that, we also have trained promoters, who will communicate what our products stand for, what and why one should buy from us. We are working on it and hope it to get better.
Comptron targets primarily the premium and the mid-premium segment, So when it comes to pricing, how many products are priced?
Our products have been priced very attractively. We are not charging something extra just because we are offering an extra feature. The strategy is to give the product at reasonable prices and give more value to our consumers. I think this is what architects will support and the consumers will like.
Are you thinking of manufacturing the products in-house?
Yes, once the demand scenario reaches the critical volume we will start manufacturing in India itself, however, for now we have partnered up with people who can support the kind of innovation desired in kitchen appliances from the Indian point of view.
Do you have any tie ups with existing developers to catalyze the sale of your products?
We have just started and we are already in touch with many of them. They have taken a liking for the product range we are offering and they are considering it. Having said that the decision making may take some time. There are many other brands who have successfully followed this route and we too will succeed in time. At the end of the day it all boils down to where the customer is making purchase from, if consumers are heading to the builders we will be there, if they chose to approach the architects to take the call we have to work with architects and if they’re making the decision themselves, we need to be present for them. It’s all about the service of consumers that matters.