AC Market has Moved From Being a Luxury and Comfort Product to a Nexessity Today

Summer season has set in and the people have to bear the brunt with temperatures way beyond the 400 C mark already. And if there is an occasional afternoon downpour, it brings more grief than relief for its layers on humidity which is simply unbearable.

These rising temperatures are a positive indication for air conditioner manufacturers, that the sales will hit the sky. Since, the only option the people have is to be in a cooled space, the manufacturers are rejoicing. They are gearing up to introduce their products with the most innovative technologies to give their customers the best experience in terms of cooling, energy efficiency and comfort. The air conditioner market is propelled by growth factors such as high disposable incomes, large base of middle-class households, and the propensity of the young workforce to spend on electrical and electronic goods which today are a necessity rather than a luxury.

The recent trends indicate that customers today are more inclined towards ACs that are far more energy efficient and technologically advanced. The industry is hopeful and expects the market to grow at a steady rate of 8 to 10 per cent on account of higher disposable income, rise in economic sentiments and positive consumer confidence. The white goods market in India is expected to reach 4 million units and Rs. 9000 Cr in sales by the end of 2015. The market is primarily dominated by Split category, which contribute 85% in value to the overall AC sales.

According to National Council of Applied Economic Research (NCAER) findings, the number of middle-class households is expected to touch 53.3 million by 2015 from the current level of 31.4 million. By 2025, it is likely to grow to 113.8 million households. As per NCAER findings, only 52 percent of middle-class households in India possess air conditioners, suggesting that the remaining 48 percent has not been penetrated. This bulging base of middle-class families presents an immense opportunity for air conditioner manufacturers in India. Another key customer segment to focus on in the long term is the bottom-of-the-pyramid (BOP) section, which as per NCAER findings, contributed to only 9 percent of the total private consumption.

Global demand is rising due to rapid growth in emerging countries and a paradigm shift to energy efficient models. There is an upward trend in sales as the market owing to various reasons like increasing disposable incomes of consumers, rising awareness and a growing trend amongst people to enjoy a more comfortable lifestyle.

The issue which manufacturers need to address on an urgent basis is regarding the power efficiency. Since, the power consumption is much higher as compared to other electrical appliances; they need to introduce more energy efficient models.

Videocon has always tried to incorporate the needs of its customers and introduce products to enrich their lives with its cutting edge technology and innovative approach. We realized the need of our customers for connected consumer devices and launched our Wi-Fi enabled AC range that can be controlled from anywhere in the world using a Smartphone app.

Continuing our tradition of constantly monitoring consumer trends and their purchasing patterns, we have once again achieved a feat by launching ‘Quantum Edge technology ‘AC’s that can work in the toughest terrains and temperatures of 55 degrees celcius. This is a path breaking technology, which ensures doubled power efficiency and eliminated the noise.

It will always be our focus to delight our customers with improved and state of the art technology and provide them with unique and extraordinary experience.