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| Miele: Doing a BMW in appliances | |
| Amit Ranjan Rai / November 03, 2009, 0:41 IST | |
Last week, German domestic appliances maker Miele entered the Indian market with a range of 65 high-end products targeted at the premium segment. This is the company’s single biggest venture outside the German market. The offerings, which are priced between Rs 23,000 and Rs 20 lakh, are targeted primarily at the 400,000 most affluent people in the country. Miele has opened its first “product experience centre” in Delhi. The 108-year-old company has fully-owned subsidiaries in 46 countries and presence in over 100; it reported a turnover of ¤ 2.77 billion in 2008-09.
Miele & Cie Managing Director & co-owner Markus Miele says: “While there are many appliance companies in the country, there is none in the high-end premium segment. We see a white field ahead of us.” Miele’s range for India includes wine conditioners, coffee machines, refrigerators, steam ovens, warming drawers, dishwashers, washing machines, rotary irons, vacuum cleaners and so on. Priced on the higher side, washing machines from Miele cost between Rs 1.40 lakh and Rs 2.15 lakh, and refrigerators between Rs 2 lakh and Rs 9 lakh. Will there be takers?
Miele is confident. The decision to invest in India was based on intensive market and consumer research for a couple of years. “A personal check that has never failed me is the number of German-made cars in a country — Mercedes, BMWs and Audis. The number in India is quite significant. We cater to the same segment,” says he. Though the prices surely are on the higher side, adds Miele, but the products offer value for money as they are tested to deliver top performance for up to 20 years. The design, he claims, is such that the products look new even after 15 or 20 years. “Our direction is that design should be timeless. It should not be connected too much to fashion — which changes fast. When we decide for colours, we take into account if it will look good even after 10 years.”
The company says the strategy for India is to go step by step. The current focus will be the market in and around Delhi. It has plans to enter the Mumbai market next year and a couple of other metros in the next few years, but the decision will largely depend on the response and demand. The target would be both individual and institutional buyers. The company says it is talking to most of the real estate companies in the country, primarily in the luxury space. It will cater to the individual customer mainly through kitchen specialists (which sell kitchens to customers) and up-market electrical retailers who sell premium brands. By the end of the year, its product will be available in Delhi at ten distribution points — four kitchen specialist and six electrical retailers. Word-of-mouth will play a big role the brand’s growth, as in other countries, says Miele.
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