From IoT to Affordability: How prepared are regional cooling brands for the summer

The summer season historically drives demand for cooling appliances, and brands are doubling down on this opportunity

New Delhi: As the scorching summer approaches, regional CDIT and cooling brands are gearing up to meet the surging demand for cooling solutions, different regional CDIT players told IndiaRetailing.

Companies like Novamax Appliances, Raj Cooling Systems, and Thermocool Home Appliances Ltd are fine-tuning their strategies, focusing on innovation, competitive pricing, and omnichannel distribution to capture the attention of Indian consumers. The industry, which saw robust growth last year, is set for another successful season with heightened consumer demand and favourable market trends, these brand representatives added.

A recent report by EY Parthenon and the Confederation of Indian Industry (CII) projects the sector to grow at a compound annual growth rate (CAGR) of 11%, reaching Rs 3 lakh crore (US$ 35.73 billion) by 2029. With the sector currently contributing 0.6% to India’s GDP, the market aims to expand its share by 1.5 times and become the fourth-largest globally by 2027. By 2030, India aspires to lead the global industry in consumer durables, driven by innovation, affordability, and a growing middle-class population.

Last Year Performance

The summer season historically drives demand for cooling appliances, and brands are doubling down on this opportunity. Last year’s sales exceeded expectations, setting a high benchmark for the upcoming season.

“With consistent demand across our offline network and new digital initiatives, we are confident of achieving steady growth this season while maintaining financial stability,” said Harshit Aggarwal, chief executive officer (CEO), Novamax Appliances, a Noida-based appliances brand.

With the proper analysis of last year’s sales, affordable pricing remains a cornerstone of strategies for regional cooling brands. Companies are finding ways to optimize production costs without compromising on quality to deliver value to customers.

“Our focus on R&D and efficient production processes allows us to offer high-quality products at accessible prices,” said Aggarwal. Similarly, Kalpesh Ramoliya, Managing Director, Raj Cooling Systems, a Gujarat-based appliances brand noted, “By leveraging economies of scale, we optimize costs and deliver energy-efficient solutions to our customers.”

This emphasis on affordability aligns with trends highlighted in the EY Parthenon and CII report, where providing value while expanding accessibility is seen as crucial for sustaining growth in the consumer durables sector.

Next Innovation 

Product innovation is another key focus for regional brands. Many companies are expanding their portfolios and introducing cutting-edge features to meet evolving consumer needs.

Thermocool Home Appliances Ltd is taking a sustainable approach, introducing IoT-enabled and eco-friendly cooling solutions while broadening its offerings. “Sustainability is at the core of our innovation strategy,” said Rajeev Gupta, Managing Director of Thermocool, a Meerut-based appliances brand.

This focus on sustainability is increasingly critical as consumers become more environmentally conscious, aligning with the broader push for eco-friendly technologies in India’s consumer durables sector.

Omnichannel strategies

A strong omnichannel presence has emerged as a pivotal strategy for brands to cater to diverse consumer preferences. Both physical stores and digital platforms play a role in capturing market share, especially as e-commerce adoption continues to rise in India.

Gupta of Thermocool Appliances emphasized their all-encompassing approach: “We ensure accessibility across physical stores, e-commerce platforms, and social media, driving engagement and sales at every touchpoint.”

Novamax Appliances has also embraced digital transformation to improve customer outreach. “Expanding our D2C platform has been pivotal in helping us understand customer preferences and offer attractive promotions directly to our audience,” Aggarwal said.

The ability to connect with customers across multiple channels has enabled brands to deepen their market penetration, contributing to the sector’s projected growth.

To sustain their competitive edge, these regional cooling brands are making significant investments in infrastructure, capacity building, and technology.

Raj Cooling Systems recently committed Rs 75 crore to a new manufacturing facility in Gujarat, which will enhance production efficiency and support long-term expansion. For Novamax, financial prudence is a priority. “We rely on internal accruals and bank loans to fuel our expansion, ensuring financial independence while achieving our goals,” Aggarwal explained.

These investments not only cater to immediate seasonal demand but also position the brands for long-term success in a market projected to reach Rs 3 lakh crore by 2029.

EY Parthenon and CII’s report underscores this potential, with the sector poised to become the fourth-largest globally by 2027. The alignment of regional brands’ strategies with these macro trends ensures they remain significant contributors to this growth story.

As temperatures rise, regional cooling brands are well-prepared to meet consumer needs with innovative products, competitive pricing, and a robust omnichannel presence.

The post From IoT to Affordability: How prepared are regional cooling brands for the summer appeared first on India Retailing.

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