Freebie schemes open up business opportunity

 

 

Kitchenware appliance makers claim that the scheme has helped in product penetration ev­en into the most backward areas of the state increasing the market by a neat 25-30 per cent at one go.

 

As part of the election manifesto, the AIADMK party had pro­mised distribution of free fans, mixie and grinders to over 1.83 cro­re women ration cardholders in the state. 

This opened up a SME business opportunity of abo­ut Rs1,250 crore, including the state’s native grinder industry. 

 

With the distribution of these appliances on,  the usage of the product has begun expanding the overall market in the state, say industry players.  These schemes have helped a vast majority of people to upgrade to better lifestyle making them loyal users of such products, said Cha­ndru Kalro, chief operating officer (COO) of kit­chen appliance major TTK Prestige Ltd. 

 

“Once people get used to the convenience of mixie and grinders, it is easier to lure them with a superior performance product and attractive exchange schemes for re­p­lacements at a later date,” he added. The co­m­pany guesstimates the overall market penetration of kitchen appliances in TN to have now grown to up to 45-50 per cent from the previous level of 20 per cent.

 

Though Samsung’s Ruchika Batra is not so convinced about the replacement market op­portunity immediately, she said such government schemes bring in a huge base of consumers, who did not have access to such technologies so far, into the fold.  “The free laptop scheme for students has introduced rural households to this high-end product at one go which individual co­m­panies could have never achieved by themselves, she added. 

 

Stressing the importa­nce of rural customers, Panasonic India MD Manish Sharma said, “Though there may be marginal differences in the degree of preparedness among young generation in small towns, they are equally driven by the desire for success and the need to enjoy it.”