New Delhi, July 23: Consumer durables manufacturers, particularly South Korean companies - LG Electronics and Samsung - have planned a major thrust in the microwaves market this season.The two companies are keen to expand the market as they had recently established manufacturing lines at their facilities in the outskirts of Delhi. LG put in place a one lakh units per annum line while Samsung installed capacity to manufacture 50,000 units per annum earlier this year.
At LG Electronics, vice-president, marketing and sales, Rajeev Karwal wants to push the microwave ovens higher up in the shopping list of the Indian households. Microwaves come fifth on the priority list of the consumers--preceded by colour televisions, refrigerators, washing machines and airconditioners. "We want to move it to the third place."
He added: "What refrigerators were to the 80s and CTVs to the 90s, microwaves will be to the first decade of the new millennium. We want to explode the market by playing the role of a pioneer."
Karwal contended that none of the microwave manufacturers--be it BPL, IFB or Kenstar--have attempted to grow the market. "Simply dropping the price of the product will not make the category grow," he stated, though he acknowledges that erosion of prices have brought more consumers into the market. "We want to position the product as an utility item for cooking."
Samsung India Electronics managing director KS Kim, too, agrees that the potential of the market has not been exploited. "The market is still very small and premature, the Indian consumers have yet to realise the benefit of a microwave oven," he told The Financial Express in an interview.
"The entire industry--BPL, LG, Videocon and IFB--needs to work together to create a market," he added.
Microwave ovens have so far been used in Indian households as a gadget to heat food and not for cooking, pointed out Karwal. Concurred BPL regional head, PV Rao, "Housewives are yet to realise that common recipes can be handled by a microwaveoven."
"Samsung cooking classes for microwave oven consumers will be carried out at all branch offices to communicate the benefits of microwave oven as a cooking device rather than a heating device, and thereby develop the product category itself," said Samsung's vice-president Ravinder Zutshi.
Microwave ovens market is not growing like the CTV markets, nevertheless, it is growing at a rate of 10-20 per cent per annum, said Rao. "It is a product of the future. The category will see tremendous growth."
LG's Karwal and Samsung's Kim are, however, not satisfied with that pace of growth. Both companies have finalised plans to woo the Indian consumers with new product offerings, easy finance schemes, cook books and even personalised classes in the comfort of the consumer's kitchen. BPL has been making some effort to educate the customer--holding demonstration at ladies clubs, cookery classes for the customer at her home.
Karwal plans to go a step further: give the customer a chance to flaunt theiracquisitions to their friends and relatives. This explains the company's decision to introduce a coloured microwave oven. "We want to give the consumer a chance to display the microwave oven in their living/dining rooms," said Karwal.
Thus, LG Electronics has introduced an oven with green metallic pigment outer body. Not to be left behind, Samsung will be introducing a model with red outer body in time for the festival season. BPL has no such plans. "There is no demand for coloured ovens," felt Rao.
The microwave ovens have always been offered with white or an off-white outer body as it was designed for use within the kitchen.
Karwal reasons that bringing the gadget into the living/dining room could set off a chain reaction of sorts which would translate into higher sales for the product category.
The consumer durables industry estimates that the microwave ovens market to be anywherebetween a conservative 35,000 units last year to an optimistic 80,000 units. They expect the market to grow to at least50 per cent this year.
BPL says it will retain its 35-40 per cent market share this year while LG expects to corner about 33 per cent market share, and Samsung is targeting 20 per cent market share.
Samsung plans to present the ceramic enamel cavity of its microwave ovens as its main USP. The ceramic enamel cavity will ensure better vitamin retention, shorter cooking time on account of higher heat storage and better scratch resistance, said Samsung's Zutshi.
LG Electronics has placed its ovens on the health platform. "The healthwave technology of our ovens--where unique twin technology emits waves from top and bottom--ensures that the food is evenly cooked without destroying the nutrients...We will bring the product attributes upfront." LG's message to the consumer--to change the way you look, just change the way you cook.
Both companies have also introduced their version of the microwave cookbooks which are now distributed with every unit of the gadget purchased.
LG Electronics is using its chainof women direct sellers to reach out to the consumers. This will be complemented by training to the dealer salesperson to carry out live demonstrations and models with one-touch controls for Indian recipes. Samsung, too, is set to launch three new models wirh advanced features. It has also introduced a zero per cent finance scheme for consumers in association with Countrywide for a three month period till September.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.