Free Press Journal

Branded segment in cooling appliances records 20-40% growth


Demand for ACs will surpass coolers in coming years

Ujjain : The market for cooling appliances like coolers and air conditioners is growing at a rate of around 20 to 40 per cent every year in the city. Market works in two segments, organised and unorganised.

Over 100 shops of coolers in unorganised segment are conducting business in Ujjain with sales varying from 100 to 500 coolers per shop in a season. While there are only three or four shops that work in organised segment with sales of 200 to 300 coolers per shop per season. Going by the statistics, citizens of Ujjain clearly prefer low cost appliances than their branded counterparts as of now.  However, market trends indicate a 180 degree shift with more and more people opting for organised or branded segment. Reasons vary from increase in buying capacity to desire of owning a brand.

Free Press talked with some leading dealers in both the segments to know market trends in coming years.

hansraj“Cooling appliances in organised segment are seeing a growth of 30-40 per cent in Ujjain. People are now choosing branded coolers, reasons being increased buying capacity among all sections of society and ease of finance. Also, with introduction of GST, the price difference between unorganised sector and organised sector will narrow, which will push customers towards owning a brand. Moreover, in coming years, growth in air conditioner market will increase manifold as companies are launching low power consumption ACs and also their maintenance is free. Biggest reason that deters people from buying ACs is the heavy consumption of power. However, now ACs which use as low as 600 watts of power are available in market.” —Hansraj Rohra, Director, RB Zone, Freeganj

praveen-Panchal“Coolers are most efficient with iron frames. Branded companies mostly make coolers with plastic frames which do not give optimal performance, so unorganised sector has an edge in this segment as we provide a large range of iron frame coolers. But this segment is already experiencing a decline. Most people, especially first time buyers are still preferring low-cost non branded ones, but as branded companies have starting giving zero per cent finance facility from this year, trends will soon see a shift.” — Praveen Panchal, owner, Gorana Coolers

anil-joshi“Easy financing options are available from this year on branded coolers. Last year we sold around 300 coolers and 200 ACs in Ujjain and we are expecting a growth of 40 per cent in sales in this category. Trends are suggesting that more and more people will be opting for branded appliances in coming years.” —Anil Joshi, Commercial Manager, Lotus

ibrahim-bandukwala“As we are a price sensitive society, most of the people prefer low cost items over branded ones. We sold around 400 coolers last year, but demand has not been as expected this year. Picture will be clearer by June-July, when preference of customers over branded and non-branded will be clear.” —Ibrahim Bandukwala, Owner Badshah coolers

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