As for Haier and TCL, both kick-started their Indian odyssey quite aggressively, but with each passing day, the pace slowed down.
When the Chinese giants entered India (in 2004), pundits believed that they will storm the marketplace. However, the present state is a shallow reflection of the promise. A Consumer Electronics and Appliances Manufacturers’ Association (CEAMA) spokesperson told 4Ps B&M, “Market share of Chinese majors (Haier & TCL) is only in single digit. They are yet to make any significant dent on the share of the market leaders (read: Koreans).”
So what exactly is coming in their way? First, they are quite small as compared to their peers. Their distribution and dealer strength is way too short considering the kind of army others boast of. Sample this: Haier only has a pitiable 1,600 dealers, woefully short compared to Samsung’s army of 9,000 dealers. Secondly, Chinese brands are yet to launch anything close to a technological marvel and thirdly, the tag “low cost-cheap quality” continues to haunt their success story. Shushmul Maheshwari, CEO, RNCOS told 4Ps B&M, “The basic problem faced by Chinese companies is the image myopia – ‘Made in China.’ But this is not the case for LG & Samsung. Albeit they also manufacture their products in China, even then, they have a substantial market share in India. So Chinese players need to focus on brand-building in India to penetrate the market and increase their market share. Chinese companies lack the media exposure and have a low mind share among Indian consumers.”
But it seems that Haier’s branding initiatives in India are gradually beginning to pay off. A Delhi based multi-brand consumer electronics retailer claims, “Compared to two years back, Haier enjoys better brand presence today and is being accepted by Indian consumers more openly. However, the same doesn’t hold true for TCL.” Pranay Dhabhai, Wholetime Director and COO, Haier Appliances India told 4Ps B&M, “We have been witnessing a year-on-year growth ever since our entry into the Indian market. The consumer response to Haier products like refrigerators, air conditioners and washing machines has been good.”
The company says that till now, it was bidding time in the Indian market so that a critical mass in the distribution network could be established. Having done that, Haier is all set to shift to top gear. Dhabhai explains, “We entered the Indian market at a time when other players were firmly established. Hence, we had to first analyse the market thoroughly, understand the gaps and opportunities and lay a strong foundation in terms of the distribution network. It’s now time for us to get more aggressive in India.” The company, which clocked revenues of Rs.350 crores in 2007, has set a hard-line target of Rs.500 crores for 2008, on the back of glitzy product launches lined up during the year. That apart, Haier’s new Pune facility is also in place and the management is hopeful for a turnaround.
When the Chinese giants entered India (in 2004), pundits believed that they will storm the marketplace. However, the present state is a shallow reflection of the promise. A Consumer Electronics and Appliances Manufacturers’ Association (CEAMA) spokesperson told 4Ps B&M, “Market share of Chinese majors (Haier & TCL) is only in single digit. They are yet to make any significant dent on the share of the market leaders (read: Koreans).”So what exactly is coming in their way? First, they are quite small as compared to their peers. Their distribution and dealer strength is way too short considering the kind of army others boast of. Sample this: Haier only has a pitiable 1,600 dealers, woefully short compared to Samsung’s army of 9,000 dealers. Secondly, Chinese brands are yet to launch anything close to a technological marvel and thirdly, the tag “low cost-cheap quality” continues to haunt their success story. Shushmul Maheshwari, CEO, RNCOS told 4Ps B&M, “The basic problem faced by Chinese companies is the image myopia – ‘Made in China.’ But this is not the case for LG & Samsung. Albeit they also manufacture their products in China, even then, they have a substantial market share in India. So Chinese players need to focus on brand-building in India to penetrate the market and increase their market share. Chinese companies lack the media exposure and have a low mind share among Indian consumers.”
But it seems that Haier’s branding initiatives in India are gradually beginning to pay off. A Delhi based multi-brand consumer electronics retailer claims, “Compared to two years back, Haier enjoys better brand presence today and is being accepted by Indian consumers more openly. However, the same doesn’t hold true for TCL.” Pranay Dhabhai, Wholetime Director and COO, Haier Appliances India told 4Ps B&M, “We have been witnessing a year-on-year growth ever since our entry into the Indian market. The consumer response to Haier products like refrigerators, air conditioners and washing machines has been good.”
The company says that till now, it was bidding time in the Indian market so that a critical mass in the distribution network could be established. Having done that, Haier is all set to shift to top gear. Dhabhai explains, “We entered the Indian market at a time when other players were firmly established. Hence, we had to first analyse the market thoroughly, understand the gaps and opportunities and lay a strong foundation in terms of the distribution network. It’s now time for us to get more aggressive in India.” The company, which clocked revenues of Rs.350 crores in 2007, has set a hard-line target of Rs.500 crores for 2008, on the back of glitzy product launches lined up during the year. That apart, Haier’s new Pune facility is also in place and the management is hopeful for a turnaround.
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