SURVEY REPORT ON WASHING MACHINE MARKET IN INDIAN
SUBMITTED BY Ankita Singha Roy
DECLARATION I have done a project on washing machine market in India.. The project is based on the survey done in Bhubaneswar and the conclusion is based on the outcomes of the the market and customer survey. I have devoted our heart and soul to make this project. The information supplied are true to the best of my knowledge.
Ankita Singha Roy
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CONTENT
1. INTRODUCTION
2. LITE LITERA RATU TURE RE REV REVIE IEW W
3. OBJEC BJECTI TIVE VE
4. METH METHOD ODOL OLOG OGY Y
5. ANALYSIS a. -BASED ON THE SURVEY b. -COMPARATIVE ANALYSIS ON BETWEEN WHIRLPOOL & LG
6. SUGGESTION/CONCLUSION
7. APPENDIX
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INTRODUCTION HISTORY A washing machine, or washer, is a machine designed to clean laundry laundry,, such as clothing,, towels and sheets clothing sheets.. The term is mostly applied only to machines that use water as the primary cleaning solution, as opposed to dry cleaning (which uses alternative cleaning fluids, and is performed by specialist businesses) or even ultrasonic cleaners. cleaners . All washer machines work by using mechanical energy, thermal energy, and chemical action. Mechanical energy is imparted to the clothes load by the rotation of the agitator in top loaders, or by the tumbling action of the drum in front loaders. Thermal energy is supplied by the temperature of the wash bath . On the early mechanical timers the motor ran at a constant speed throughout the wash cycle, although it was possible for the user to truncate parts of the program, by manually advancing the control dial. However, by the 1950s demand for greater flexibility in the wash cycle led to the introduction of electronic timers to supplement the mechanical timer. These electronic timers enable greater variation in such functions as the wash time. With this arrangement, the electric timer motor is periodically switched-off to permit the clothing to soak, and is only re-energised just prior to a micro-switch being engaged/disengaged
In early automatic washing machines, any changes in impeller/drum speed were achieved by mechanical means or by a rheostat on the motor power Despite the high cost of automatic washers, manufacturers had difficulty in meeting the demand. Although there were material shortages during the Korean War , by 1953 automatic washing machine sales in the US exceeded those of wringer-type electric machines. In the UK and in most of Europe, electric washing machines did not become popular until the 1950s. This was largely because of the economic impact of World War II on the consumer market which did not properly recover until the late 1950s. The early electric 4
washers were single tub, wringer-type machines, automatic washing machines being extremely expensive. During the 1960s, twin tub machines briefly became very popular, helped by the low price of the Rolls Razor washers. Razor washers. Automatic washing machines did not become dominant in the UK until well into the 1970s and by then were almost exclusively of the front-loader design
INDIAN MARKET Overview
The washing machine market is valued at Rs. 1500 crore and is growing at the rate of 22% this year (2007-08) compared to last year. The fully automatic and semi-automatic sub category is growing at the rate of 40% and 17% respectively. Washing machine sales is cyclical in nature and its sales commences with the onset of monsoon.
Major Players
Some of the major players in the category of washing machine market are: •
Whirlpool
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LG Electronics India Ltd.
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Videocon
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Samsung
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LG is the leader with 27% of market share.
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Whirlpool has a market share of 17%.
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Samsung has a market share of 14%.
TYPES OF PRODUCTS •
Fully automatic machines
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Semi-automatic machines
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Front loading washer
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Top loading washer
Before the liberalization of the Indian economy, only a few companies like Kelvinator, Godrej, Allwyn, and Voltas were the major players in the consumer durables market, accounting for no less than 90% of the market. Then, after the liberalization, foreign players like LG, Sony, Samsung, Whirlpool, Daewoo, Aiwa came into the picture. Today, these players control the major share of the consumer durables market.
OBJECTIVES
TO KNOW THE MARKET IN INDIA FOR WASHING MASHINE TO KHOW THE MARKET IN BHUBANESWAR FOR WASHING MACHINE TO KHOW KHOW ABOUT ABOUT THE PRODUCT PRODUCT & PRICE IN CONTEX CONTEXT T OF INDIAN INDIAN MARKET TO KHOW KHOW HOW HOW THE THE MARK MARKET ET HAS HAS CHAN CHANGE GED D FROM FROM THE THE EARL EARLY Y YEARS TILL NOW WHO ARE THE THE PRESENT MAJOR PLAYERS PLAYERS IN THE MARKET MARKET ? WHAT IS THE FUTURE OF THIS MARKET?
RESEARCH METHODOLOGY We visited two showrooms in Bhubaneswar namely SpectraET and Rajpath Electronics Bapuji Nagar E-Zone. 1.Direct talk with the dealers: We had a talk with dealers about the present market of washing machine of Bhubaneswar. 2.Sample survey: We surveyed on the the basis of our questionnaire with the customers.
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ANALYSIS
The characteristics of Indian market are much different from what it was 10-15 years back. At that time the washing machine was only meant for the higher class people. That time only the big dealers of big cities were selling washing machine as it was a kind of luxury product. But due to changes in life-style of Indian middle class families, increase in the no. of nuclear families; increase in no. of working mothers the demand for washing machine rises in the middle class people also. There are many companies operating in Indian market market now, now, both both domest domestic ic and intern internati ationa onal. l. We have have visite visited d some some showro showrooms oms in Bhubaneswar. We talk to them. We have got an overview of the washing machine market in India, especially in Bhubaneswar. There are four types of products which are specially marketed here. Semi automated Fully automated Top loading Front loading The fully automated front loading washing machine is costlier then other types. As the the mark market et of wash washin ing g mach machin inee is wide wide now now many many comp compan anie iess both both dome domest stic ic international are competing in Indian market . WHIRLPOOL SAMSUNG LG IFB
The top four companies are leading in the market LG,Whirlpool,Samsung,IFB.Front loading fully automated machines are relatively costlier than other types.IFB is the first company to introduce Front loading washing machine in India.IFB “ consumes less,save more “is the popular brand in Bhubaneswar.It consumes less electricity,detergent and water.
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LG”wear care-experience the next generation of fabric care ” is the top most brand in washing machine market all over India having about 30% market share. The look of the models are very attractive,colourful and affordable. Whirlpool and Samsung are giving tough competition to LG .Samsung” experience the freshness of new clothes” has four types of machines in Indian market. Top loading fully automated • Front loading fully automated • Semi automatic twin tub machine • Air wash-its main characteristics is it does’nt need water for washing clothes.Its range range starts starts from from Rs 95000 95000 onward onwards.T s.The he dealer dealerss don’t don’t keep keep this this machin machinee in showrooms,they import it only against the order,it is not manufactured in India. •
Whirlpool”let your hands do what they do best” is also very tough competitor of LG and Samsung.It’s very popular in all over India.The others brands are also popular in the middle-class consumers like Godrej,Onida,Voltas. Godrej,Onida,Voltas.
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TROMM LG Electronics, has unveiled the latest front loading TROMM series, drum washing machines. Its futuristic wash features such as Fuzzy Logic technology ensures that once you press the start button, smart sensors automatically detect the laundry load and water level. Adjustments are then made in the water levels and cycle time based on the laundry load to give you that perfect wash. Fuzzy Logic L ogic also detects machine imbalance and excessive foam formation and adjusts the same for the best washing performance. At the touch of a button LG TROMM saves water and energy giving you a clean and convenient wash. TROMM has the largest capacity 7 kg drum load capacity, Single dog Dial feature, Delay Timer, Digital Display. It has Eco Wash, 9 Water levels and GRPP Outer Drum features give the benefit of saving electricity. Self Diagnosis mechanism, child lock and rat cover are the added safety features. Top loading fully automatic washing machines LG’s Top loading range of fully automatic washing machines comes equipped with the revolutionary i Sensor technology. The i-Sensor technology is a combination of 7 sensors against the normal 4 present in other machines, which delivers a supreme wash. The hardness, detergent and temperature sensors are the additional sensors. 7-water 7- water level sensors help in power saving of upto 15% more than regular washing machines. LG also displayed its Turbodrum and 3 step wash range of machines which delivers best towards washing and rinsing performance. The washing machines also come with safety saf ety features such as imbalance and door lock sensor with child-lock feature. The machines m achines are equipped with self tub clean system for better hygiene . All these superb features enable washing that offers tangle free clothes, less wear and tear and complete yet gentle cleaning .
Aesthetically very appealing, LG Washing Machine has stylish European looks which is a unique blend of eye-catching design, user-friendly controls and digital as well as window display. The FRONT LOADING Washing Machine range comes in four colors, making LG the only company in India to offer off er so many color options.
Semi Automatic Washing Machines LGEIL has a total line up of 11 models in SAWM offering off ering capacity of 6.2, 6.5, 7.0 & 7.2 Kgs. The highlight of the Semi Automatic Range was India’s first 6.5 Kg capacity semiautomatic washing machine, developed through the efforts of LGEIL’s r obust in house R&D & Product Planning Team, with an investment of over 25 crores. This washing 9
machine has been designed taking into consideration the aspirational as well as functional needs of Indian consumer. The new Semi automatic machine launched has international looks and elegance.
LG WASHER & DRYERS The LG Dishwasher is a technological miracle with high performance levels, dependability, energy efficiency and convenience. The uniqueness of the LG dishwasher is that it enables 50% fold down times to enable washing of large vessels, various washing systems and an aqua stop which will detect water leaks. It also has a triple filter which increases the efficiency of use of water and energy . The dishwasher can be hailed as the gadget of the millennium since it requires least water consumption has more programs & comes in sleek design.
LG’s Washer Dryer, unique in its offerings marks entry of this segment in Indian market. Consumers would be offered complete Wash & Dry solution with this compact machine which has a large capacity of 8 kg washing and 4 kg drying capacity. Its features of auto dry and max spin speed of 1400 RPM making LG washer dryer a value for money Proposition. The Dryer comes loaded with latest condensing technology for drying clothes thus eliminating the need for air vent and duct which is commonly observed in current Indian offerings . It has dual lint filter and can handle bulk load upto 7 Kg . LG’s milestones in the Washing Machine category:
1997: LG launched its top loading washing machine from Korea 1998: Washing machine factory setup and start semi automatic washing machine 1999: Washing machine export started and launched front loading 2000: Launched MICOM controlled Semi automatic WM 2001: Launched 10 Kg. Digital Display top loading and new range of front loading 2002: Home production of top loading WM 2003: Became No.1 brand in WM category 2004: Launched TROMM
WHIRLPOOL
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A leading manufacturer of home appliances, disclosed a phenomenal rise in standalone net profit for the quarter ended March 2008, helped by healthy sales growth and cost cutting measures adopted by the company.
The company’s sales surpassed its tally of the previous year, even as the domestic home appliance industry remained sluggish on account of rising input costs and other factors. Whirlpool recorded a Sales turnover of Rs. 1933 Crores a growth of 21% over the previous year. Announcing the annual results, Mr. Arvind Uppal, Managing Director India and Region Head Asia Pacific (excluding Greater China) Whirlpool said “ I am pleased that we are back in the black. Our focus on sustainable profitable growth is definitely yielding positive results.” Whirlpool of India is on an aggressive growth path and has set impressive targets for 2008. The company recently launched the revamped ‘Genius’ and ‘Fusion’ range of refrigerators, Whirlpool Whirlpool ‘Professiona ‘Professional’ l’ series series of washin washing g machin machines es and refrige refrigerato rators, rs, Whirlpool ‘Mastermind’ air conditioners and Whirlpool ‘Max’ microwave ovens, further enhancing enhancing its already already strong product product portfolio portfolio.. ‘The company company targets targets a growth growth of 20 percent this year over last year,’ said Arvind Uppal, managing director of Whirlpool Of India Ltd, a subsidiary of Whirlpool Corp, at the launch.‘Our target customers are contemporary woman professionals who are also homemakers,’ he added. ‘Commenting on the company’s marketing strategy, Gupta said: ‘We will come up with two new advertisements. We will make these products available only at 1,500 retail outlets across India out of the total 7,500 such stores.’He also stated that every year buying increases by at least 30 percent during the festive season in comparison to sales during rest of the year.Bollywood actors Kajol and Ajay Devgan will continue to endorse the brand, he added.
. ” With the launch of of new products, company expects expects a growth of 20 per cent in this festive season over last year.
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”We expect to increase share in the fast growing frost free segment to 30 per cent by the end of this fiscal. The company is also targeting an agressive 10 per cent share in tne microwave category,” he added. Whirlpool products are avilable in 7,500 retail outlets across the country. It has a 25 per per cent market share in direct cool segment and 22.5 per cent in frost free. It is also mulling to enter into the the water purifier and and modular kitchen segment . Whirlpool - World’s leading manufacturer and marketer of major home appliances, with annual sales of more than $19 billion and more than 80000 employees. For For the the purp purpo ose of our our ana analys lysis we have ave chose hosen n two two lead leadin ing g bran brand ds LG and Whirlpool.Among the several features available within the product we have considered only a few on the basis of which customers take their decision. Here LG is having four types of model -Washer dryer, Front Loader, Top Loader, Semi Automatic type whereas Whirlpool is having only two types of model - Fully Automatic and Top load,Semi Automatic. The most important factor that is the price ,in case of LG it varies from Rs 6850 to almost Rs 370000 whereas the price of Whirlpool ranges between Rs 10000 to Rs 20000. LG likes to bring out its product in colours of white base,but Whirlpool gives an option of deep colours like red and brown etc. However the washing capacity of both brands are almost same and it ranges between 5.5kgs to 7kgs.LG gives an option of separate washer and dryer but Whirlpool does not give us an option. On the basis of such characteristics the companies create product differentiation and try to penetrate into the market.
FUTURE OF WASHING MACHINE IN INDIAN MARKET 12
Demand is the notion of an economic quantity that a target population or market requires under under differe different nt assump assumptio tions ns of price, price, qualit quality, y, and distrib distributi ution, on, among among other other facto factors. rs. Latent demand, therefore, is commonly defined by economists as the industry earnings of a market when that market becomes accessible and attractive to serve by competing firms. The latent demand for washing machines in India is not actual or historic sales. Nor is latent demand future sales. In fact, latent demand can be either lower or higher than than actu actual al sale saless if a mark market et is inef ineffi fici cien entt (i.e (i.e., ., not not repr repres esen enta tati tive ve of rela relati tive vely ly competitive levels). Indian mar Indian market ket is fast fast movi moving ng towa toward rdss high high-en -end d cust custom omiz ized ed prod produc ucts ts,, whic which h are are aesthetically designed to complement the modern households. The need at this moment of time time is to cont contin inuo uous usly ly inno innova vate te and and come come out out with with prod produc uctt vari variat atio ions ns acro across ss catego categorie riess to meet meet the expect expectati ations ons of a varied varied class class of custom customers. ers. Disman Dismantli tling ng of quantitative restrictions on imports of consumer electronics has let to customer tariffs gradually coming down. In such environment, the industrial units could only survive by improving the efficiency and productivity. pr oductivity. India is a fast developing country and is proving to be a major challenge to the already established countries of the world. This industry expects to grow by 60 per cent for washing machines in this year. This area needs to be regularly updated with newer technologies, so that the innovations are meaningful to the customers. Setting up of manufacturing facilities by MNCs in India, which not only meet international standards but also reduce trade barriers between two countries and give a thrust to the exports of the company, which which is very important. It is always needed to to make future plans to grow its existing market, continue with its operational and marketing initiatives, continue to innovate, expand its product portfolio and to start manufacturing everything in India. SUGGESTIONS : • •
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Cost should be such that can be affordable by each and every person. For making the product available to the customer technology need to be developed. One most important thing is “awareness level”. It needs to be increased in daily life. For increasing the awareness level it needs to be marketed properly by which consumption can be done. Continuously innovate and come out with product variations across categories to meet the expectations of a varied .class of customers Need to improve productivity and efficiency.
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CONCLUSION
The growing middle class population is largely emphasizing on consumer electronic products that are more convenient to use and more efficient. Indian washing machine market clearly substantiates this fact. Currently, accounting for around 63% of volume sales, semi-automatic ‘twin-tub’ category dominates the washing machine market. But in terms of growth, the fully-automatic category is performing extremely well in the Indian market. market. The volume sales of fully-auto fully-automatic matic washing machines machines are expected expected to surpass surpass that of semi-automatic washing machine in coming few years. "The players in the consumer electronics space consider India a market for transactions, which is a short-term, unsustainable strategy," Some Someti times mes dema demand nd func functi tion onss rela relate te the the inco income me of a stat statee or unio union n terri territo tory, ry, city city,, household, or individual to realized consumption. So it totally depends on the consumers how they are having focus on the consumer products(FMCD). Similarly, in the long run, households with no income eventually have no consumption (wealth is depleted). While the debate debate surrou surroundi nding ng belief beliefss about about how income income and consum consumpti ption on are relate related. d. So everything depends on the income of people i.e. low, middle or high income. We foresee a bright future for washing machine segment considering the past and present data.
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