Aisen has been established under the aegis of Vishal Video & Appliances Pvt. Ltd., an INR 1200Crore ISO 9001:2008 certified company. According to the Aise, they hold a Dominant Position in the North Market. Becuase of the Make in India initiative, their manufacturing unit located in Noida (India) including R&D unit, aims to bring Latest in technology at most reasonable prices. It has over 200+ distributors in the country across more than 500 cities. ( Channel Partners like Value Retail, Aditya Vision, Sargam etc. ). We had an interaction with Mr. Vinit Agarwal- Brand & Marketing Director in Aisen, to know about the company’s strategy and upcoming plans…
How far the journey of Mr. Vinit Agarwal as Brand & Marketing Director in Aisen. And what are the trends he sees in the emerging market of television in India?
Until some time ago, the total market share of Smart TVs was below 8% while currently, the growth for Smart TVs has reached 40%. This is also rising due to the availability of content. With Netflix, Amazon and Hotstar increasing subscriber base the demand of smart TVs in metro markets has spiked to a phenomenal level. This jump is suggestive of the changing consumer preferences, marking a stark contrast between the Indian consumer before and the digitally savvy Indian consumer today. A shift will be seen across India, where one will also see a rapid growth in the rural sector consumption of Smart TVs. In terms of trends, rapidly changing 4K TV, rural sector dominance, acceptance on the make in India brands and the affordable category is set to rise.
What are the challenges and difficulties facing by the Aisen to become a successful brand?
The pace of technological change is accelerating so quickly that finding the right balance between addressing today’s daily operational challenges and planning for the next big thing can be a struggle. Heavy taxation in the country is one of the biggest challenge faced by the consumer durable brands like us. Even now the total taxation incidence in India stands at around 25% to 30%. However some relief has been provided by the government by reduction of GST for the 22” and 24” sizes, but the vast majority of panels sold are 32” for which we are hopeful the government will come up with a solution soon.
A large proportion of India still buys black & white TVs and doesn’t know what flat screens are. The rural market has a considerable cost component attached to it. Other being, Companies not only have to set up the basic infrastructure in terms of office space, manpower, but also spend on transportation for moving inventory. Regular power supply is imperative for any consumer electronics product.
How has GST impacted the Indian consumer electronics market?
With the implementation of GST the businesses underwent large-scale changes with respect to business planning, tax, and accounting, budgeting and investments. The challenge at hand for the business community was to adapt to the transitional tax reforms by understanding the various nuances of the new GST regime. Transition to GST also impacted several financial reporting systems, Impact of Tax Credit and Reconciliations are crucial aspects to look into. The consumer durables industry is expecting only a marginal price revision despite the category being placed under the highest tax slab of 28 per cent under GST, as players look forward to the festive season in the coming months.
Why Aisen didn’t opt the Online channels; when everyone is moving towards it?
There is a fabulous grown in the online market but you can’t ignore the opportunity that offline still holds and for us, it’s the offline Channel that drives the growth. We Think of it less as online vs. offline, and more like achieving a unification between the two. It’s hard for retailers to get in front of customers, so the best approach is to connect the two, and create leverage through your offline channels.
How is Aisen helping in Digital Transformation? And what you think how much successful it is in India.
We have a full range of smart TVs. Innovation in smart TVs to ease interaction between the unit and the customer through E Share, cause if you have technology in hand but difficult to use, then there is no meaning of it. E Share makes the operation/use of smart TV functions smooth and simple.
Is there any specific reason for having the strongest market share in the UP.
As a company, we have been working in UP for more than 35 years in distribution and have a strong base in that region.
Aisen dealing in TVs, Air Coolers and Speakers; out of them which one is performing best for Aisen in India.
Our Air Coolers and TVs have let us establish a strong foothold in the Market, while for Speakers we have just entered the Market with innovative products. Walk and Rock series speakers come with an inbuilt battery, castor wheels and live drum sets!
How well the Aisen performing in Tier II and Tier III cities?
Today, the rural TV viewership contribution to the pool is about 52% and a total number of households which have television is about 183 million- expected to touch 200 million by 2020. As India grows economically, its rising purchasing power has naturally made its emerging cities (Tier II and Tier III Cities) promising, yet untapped markets. The Tier II and Tier III cities are the new face of India, a new wave of India. For Aisen, the Brand has already opted for this route right from its inception & established a strong presence in these untapped markets with a strong distribution network and omni channel presence. We are actively charting appropriate strategies and communication tools to cater to them.
What new offerings consumers can expect in 2018-2019?
Aisen as a brand is known for its TV and Air Coolers. The Brand has become synonym for its products with the latest technology at affordable price points. This Month we enter Washing Machines and are also planning to launch Air Conditioners by end of this year. We shall also be broadening our LED TVs by an introduction on 65″ and 75″ UHD Panels. In the coming financial year, we aim to bring around our presence in all districts in the country and aim for a 10% market share.
How does Aisen aim to gain consumers’ trust, like other brands such as LG and Samsung?
At this moment, the company is not targeting to compete with industry stalwarts like LG and Samsung. We are looking to gain a foothold in the budgeted TV Market segment, where we have noticed a major vacuum in terms of offerings. We aim to bring advanced functionalities and features to consumers at affordable price points with unmatched quality. In terms of our product offerings, we aim to rise above the competition. The future of the television industry lies in re-invention, quick adaptation and tailoring solutions as per what audience needs.