Buy an Usha fan and get a wrist watch free. Or win any one of the 4,001 `maha cool' prizes, which includes a bumper Suzuki Wagon R, mobikes, two-in-ones and sun glasses. Buy an Orient fan and win Maruti 800s, Bajaj scooters or Whirlpool refrigerators. If you don't win any of these, the Scratch and Win hungama will ensure a cash prize at least. Ditto for the youngest fan brand in the market, Ortem.
To fan sales every manufacturer is dreaming up eye-catching promotions. "Promotions and free gifts have become mandatory in the consumer durables sector," says Hardeep Singh, managing director, Polar fans. Especially so in the intensely competitive fan industry where the unorganised sector is consolidating its marketshare.
Consider the figures. From a 30 per cent marketshare, the unorganised sector has spurted to 55 per cent in the last few years. Orient's senior vice president C K Mendiratta points that most of the 7 to 8% growth in the fan industry per annum is taken away by the unorganised sector due to the price differential. The unorganised sector players do not pay excise duties or sales tax, and therefore manage to sell their products 25 per cent to 30 per cent cheaper.
Polar's Singh says that unlike the refrigerator or TV manufacturers the organised sector players have not innovated to stay ahead of the unorganised sector. Innovations like frost free, double doors, in fridges or golden eye, digital chips in TVs have enhanced sales of the branded players.
In case of fans, the innovations have been purely cosmetic. The only new feature is the bright colours or the intricately carved designs in gilt or silver.The fan has moved from merely being a utility ware to an aesthetic designer item. However, cosmetic changes are easy to imitate and the unorganised players are quick to copy.
However, this summer, Usha and Orient claim to have upgraded their technology. Usha has lined up seven new products including Windsor with an extra powerful motor and higher blade angles and Ultra tech which maintains high speed even in low voltage. Orient has launched four new models _ the twister decor ceiling fan for the upper segment of the market including other models for the mid priced and economy segments.
Metro Appliances' managing director Rummy Chhabra waxes eloquent about its super premium Princess range priced at Rs 3,500 meant for plush interiors. Polar, meanwhile, has readied a Y2K fan, _- "a breakthrough concept in fans," according to Singh. However, he plans to launch it during the off-season for a greater impact.
Given the cut-throat competition, the branded players have no choice but to spend long hours working out strategies to take on the unorganised sector as well as the other brands. For instance, Orient's Mendiratta points out that most of the organised sector have shifted focus towards the higher income groups offering quality products and improved their after sales service. Besides they are also spending more on advertising.
While Usha's advertising budget has touched Rs 10 crore, most others spend between Rs 2 to Rs 6 crore. "But even that isn't enough _ we have to think up different ways to lure the customer. It's becoming a buyer's market," says Chhabra, adding that Ortem has mopped up a 7 per cent market share in 11 years.
The IFMA (Indian Fan Manufacturers Association) is lobbying with the government for duty exemptions to reduce the price differential between the branded fans and unbranded items.
