Update On :19 March 2016
With a target of cornering 4-5 per cent market share over the next five years and a thought to continue its diversification drive, battery maker Eveready Industries has announced its entry into the kitchen appliances segment. The company to make good of its late entry into the already overcrowded home appliance sector will focus mainly on the e-commerce platform which will also help it save on costly distribution costs.
Amritanshu Khaitan, managing director of Eveready Industries, â€œConsidering that 30% of country's appliances now get sold through the e-commerce platform, the thrust would be on it with disproportionate spending on channels like Flipkart and all. Not all big brands in the brown-goods space are on the e-commerce platform partly due to channel conflict. But we plan to be there in a big way.â€
Some models out of its 60-odd appliance product range starting from mixer grinders to rice cookers would be developed exclusively for the specific e-commerce platforms. Despite being a late entrant into the fragmented and overcrowded space, Eveready hopes to garner a market share of 5% within the next three years.
While there is pressure to sell cheap on e-commerce channels, an operating margin of 10-12% in the appliance category would ensure profitability. Even after considering discounts being offered on online sales, savings in terms of lower distribution cost take care of that. The venture is asset light with the products being entirely outsourced, of which 65% would come from Chinese suppliers.
News Source From : http://www.dnaindia.com/money/report-eveready-eyes-e-comm-route-for-super-charged-foray-in-home-appliances-2190618
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