Rivals race to roll out air-con brands ahead of summer

The launch comes as rival brands gear up to unveil new models, supported by advertising campaigns and promotions, to target consumers ahead of the summer months. The new initiatives are aimed at growing a category with low penetration. In 2003, air-conditioner sales in India grew by 15 per cent, and higher growth is slotted for this year. Rajeev Karwal, MD and CEO, Electrolux Kelvinator, said: "The industry is hoping to net substantially higher volumes in 2004 with a market growth of 25 to 30 per cent." Voltas' new model is priced at around Rs 10,000 (about US$227), the lowest price in this category so far. KJ Jawa, vice-president, cooling appliances business division, Voltas, said he expected lower price points to explode the market. "Haier and other Chinese players are known to hammer down the costs to unbelievable levels," he said. Meanwhile, in the mid-range segment, LG's Health Zone models are attempting to take on Samsung, as well as Voltas' Vertis range. In the premium segment, LG's Whisen range will position itself on the cutting-edge of technology, and the brand, priced at Rs 45,000, will compete against Daikin and Hitachi, plus new entrants Electrolux and Haier. Product features are also getting increasingly elaborate: the LG Whisen range can be operated from a telephone; Samsung's Hurricane series promises to reduce the presence of fungi and bacteria. "The main drivers of the air-conditioning market this year will be differentiation in products and features rather than price alone," said Karwal. LG, which has budgeted close to $3.4 million for Whisen, will take an emotional tack, playing on consumers' well-being in its marketing push. "We want to highlight that Whisen is levels above the existing AC models in technology," said Salil Kapoor, product group head, LG.