Usha International bullish in Tier II, III, rural markets

: Consumer durables major UshaInternational on Tuesday said it is very bullish on business in Tier II and III cities and rural markets, which have 70 per cent of its customers, as the potential was immense.Usha International President, Electric Fans and Pumps Business, Rohit Mathur, said the company was witnessing a huge demand for its products in these markets."We are very bullish on our expansion in these cities-the main reason being the growth consumption patterns, where customers go deeper within the categories", he told PTI.He said 70 per cent of customers in Tier II, III and rural markets have always featured high on Usha's priority list for business expansion."We feel that every customer, irrespective of whether he is working in a metro or in Tier II or tier III or at distant rural village are potential customers...The potential of Tier II and III markets to contribute to sales of a brand is immense," he said.Noting that the company has been witnessing huge demand for its products nationwide, he said they were looking at doubling revenues from rural markets in two-three years."Currently the rural markets contribute about 25 per cent of the revenue and we aim to double this in two to three years," he said.To a query, he claimed that Usha International has 21 per cent market share in the fans category and had also doubled its marketing spend to Rs 10 crore.They were investing in various retail initiatives, including in-shop presence and branding, he said.He said the company was 'aggressively' pushing sales to big retail chains to strengthen its retail footprint."Traditional distribution accounts for close to 90 per cent of revenue and now the company has drawn up a strategy to increase retail share rapidly", he said.He said Usha International has 51 company owned and operated branded retail stores in 38 cities and were experimenting with the idea of franchisees to expand in Tier II and III cities."Once this model is established, we can then go in for a major expansion in raising the number of stores", he said.Mathur was here recently to unveil Usha Race Chrome range of fans along with company's brand ambassador and India's first Formula 1 driver Narain Karthikeyan."After the successful launch of Usha Racer Fans with him (Narain Karthikeyan) last year, we are now launching Usha Racer Chrome.The Usha Racer series we are focusing on ultra high speed of 400 RPM with glossy power coated superior finish for durability and high lift angle blades", he said.He said the company has introduced 12 new models, priced between Rs 1,850 and Rs 9,000, strengthening its fan business.

Usha International bullish in Tier II, III, rural markets

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