July 14, 2014: Philips India as part of its strategy to drive growth is planning to concentrate on small cities where electricity is a problem and to launch new products for these markets. The company which expects to generate volumes from tier I and tier II cities is looking at products in the range of Rs.1,000 for these markets.
Philips India President for consumer lifestyle business, ADA Ratnam was quoted as saying, “In personal care, we have launched some products exclusively for tier I and II cities, or cities where electricity is always an issue. We are not looking at these products for the metros. Apart from personal care, we will also be launching some more kitchen wares where we can penetrate in tier III cities.”
He further added that, “In beauty and hair care segment, we are not only looking at the metros but also beyond them. There is an unmet need among small town consumers.”
In its pursuit to make the products more affordable, the company recently launched a mass market low cost trimmer for men called BT3200 priced at Rs.1,095 which allows users to complete shaving during power cuts.
The company which has not only taken into account the pricing aspect but also convenience has developed products for these markets using consumer insights and the company plans to launch more products in the personal care and home appliances space. The company s looking forward t launch products like mixer grinders and induction cook tops targeted especially for smaller cities.
Philips which is the market leader in male grooming equipment segment with over 70 per cent market share is planning to launch 30 new products this year in various categories. The company has already launched 14 new products this year at different price points.
The domestic male grooming equipment market is estimated to be around Rs 2,100 crore and electrical grooming equipment is estimated to be around Rs 280 crore market. This market is growing at 30 per cent a year and Philips would be looking to making its presence felt in this market by introducing new products for new markets.
