Targeting the premium segment, BSH Household Appliances, part of Germanys diversified group Bosch, has launched its elite luxury brand Gaggenau in the country.
This is the companys third brand in the country, after Bosch and Siemens.
"The luxury segment is growing fast and there are other luxury brands which are also entering and we are seeing kitchens being sold with values over Rs 40-50 lakh in the country and therefore we believe there is a market for luxury appliances to complement to luxury kitchens.
"Also, there are high-end condominiums being sold, so for that particular segment, we are launching this brand Gaggenau," BSH Household Appliances Managing Director and Chief Executive Officer Gunjan Srivastava told PTI.
The luxury built-in appliances brand Gaggenau has been around for over three centuries, originating in Germany.
"We believe that the Indian consumer durables sector is witnessing an inclination towards premiumisation in the last few years and we are confident that this is the appropriate time for a brand like Gaggenau to enter the market," he added.
BSH Household Appliances would be launching the full range of appliances like hobs, hoods, ovens, microwave ovens, dishwashers, coffee machines, vacuuming drawers, wine cabinets and refrigerators in six cities this year, with the prices ranging from Rs 2 lakh to upwards of Rs 20 lakh.
The products would be imported from its Germany and France facilities.
"We want to reach the top four to five cities to start with and then take it another four to five cities. We are starting with Delhi, Mumbai, Bengaluru, Gujarat and later with Pune and Hyderabad. After a year and half, we will look at expanding into other cities as well," he said.
The company also plans to launch its experience centre in Mumbai next year.
It has identified two channels in terms of go-to-market strategy -- the premium high-end developers and the high-end kitchen retailers who deal in imported luxury kitchens.
Srivastava, however said it is too soon to estimate Gaggenaus growth or revenue in India, since there is no competition in the luxury appliances space at present in the country.
BSH Household Appliances has been clipping at a growth of 30 percent in India. "We are looking at next 7-8 years, clocking minimum 30 percent CAGR, every year," Srivastava added.
The growth would be driven by adding more products to increase market accessibility, expanding its presence from 200-250 cities at present to 350-400 cities in the next five years and investments in brand awareness, he said.
"We are spending over 15 percent of our revenue on marketing, which is quite substantial," he said.
The company has 80 own stores (50 for Bosch and 30 for Siemens) and aims to take it to 100 this year.
It has seen a huge growth in online sales and expects it to grow faster than offline channels in future.
"2017, we saw online sales jump more than 100 percent for us. We expect that in coming years, we will see very high growth rates, much higher than offline growth rates," he said. – India Today