The Indian consumers prefer cheap and simple
The Indian consumers prefer cheap and simple
Lighting devices.
In 1996/97 in India it has been made more than 600 million
Electric lamps. The enormous capacity of this market has involved on
It such large producers of the lighting equipment, as
"GE" (USA) and "Osram" (Germany). However, hopes of the given producers on
Considerable sales volume in their India the newest and high technology
Production were not justified yet.
While in the developed countries consumers in escalating
Degrees use new, energosberegajushchee the lighting
The equipment, the most popular light source in India remain
Traditional lamps nakalivanija. Manufacture of the last so
The named organised sector (average and large
The companies) in 1996/97 has made 412 million piece Small and
The handicraft enterprises also let out a significant amount
The specified lamps for the technology of their manufacturing is simple, and costs
Manufactures - low. Though exact data on the unorganized
To sector is not present, it has roughly been counted up, that the general release
Lamps nakalivanija in India in 1997 650 million piece was equaled
Manufacture of fluorescent lamps in the country last year was
Much smaller - 122 million piece, however it grows higher
Rates, than release of lamps nakalivanija; in 1991 - 1997 these rates
Made accordingly 11,6 and 7,4 %.
For last three years the basic producers of the lighting
The equipment ("GE", "Philips" and "Osram") have developed the big
Number of new light sources. So, "GE" has let out on the market
Multi-coloured lamps nakalivanija the elegant form "Pastel",
Called to serve as an ornament of a house interior, and also a lamp
For external illumination "Buglite", having the special yellow
Covering which frightens off insects, and lamps "Long Life",
Calculated on 2500 ch operation.
Among new lighting products of company "Philips" it is possible
To note special purpose lamps (for example, for illumination),
Lamps for the focused illumination, desk lamps, etc.
"GE" and "Philips" have developed also updatings of the fluorescent
The lamps, improving a colour rendition. From compact fluorescent lamps
It is possible to allocate energosberegajushchie light sources of firms "Philips" and
"Osram", calculated on long service life. The first
Has let out, besides, on the market new series of fixtures for
Street illumination and emergency illumination on chemical,
Petrochemical and oil refining complexes.
All listed companies have brought also the technical
Improvements in traditional light sources also have begun
Manufacture such new energosberegajushchih lamps, as galogennye,
metallogaloidnye and natrievye.
However many of these new products have not received a recognition at
The Indian consumers, as a rule, preferring
To cheap lamps and fixtures. The average Indian buyer
It is quite satisfied by a usual electric lamp nakalivanija, and
Demand for specific light sources is insignificant.
The simple lamp nakalivanija capacity 40 Vt costs in India nearby 10
And. rup. (0,26 dollars), and shaped lamps with colour shades -
Approximately on 50 % it is more. Compact fluorescent lamps on
To smaller measure in 30 times is more expensive than traditional lamps nakalivanija.
As observers, basically the Indian consumers mark
Are more interested in short-term advantages of cheaper
Products, rather than in long-term advantages of expensive sources
Light and fixtures. Frequent failures in giving of a current, fluctuation
Pressure in networks and rather low tariffs for the electric power
Reduce benefits from long service life and profitability
Expensive compact fluorescent lamps.
Not surprisingly therefore, that sale of compact fluorescent lamps in
India has not reached expected level. Their manufacture in 1995/96
Has made, by an estimation, only 2,4 million piece Owing to the weak
Demand on energosberegajushchie and metallogaloidnye lamps the company
"Osram" reconsiders now commodity structure
The manufacture. It, in particular, has requested of the Indian
The governments the permission to manufacturing and sale of lamps
nakalivanija, which release at creation of its branch
In India (in 1995) it was not provided.
Inability of retail dealers to convince buyers in
Expediency of acquisition of compact fluorescent lamps
Has forced to reorient producers of the last their marketing
Strategy on establishments and the large enterprises and the organisations.
The specified lamps, obviously, will find demand at hospitals, hotels,
Offices, auditoriums which on advantage will estimate them
Long service life and profitability.
Presence of cheaper versions of lamps nakalivanija,
Delivered on the market unorganized sector, has aggravated
Problems of larger producers. Manufacturers
High-quality lamps nakalivanija and energosberegajushchih
Light sources with long service life could not affect on
Predilections of the Indian buyers and are compelled to entrust now
Advancement of their production to retail dealers who insist
On higher commission fee.
Besides, financial difficulties have compelled the Indian
The governmental organisations to postpone a number of orders, and meanwhile
On these organisations the considerable part of sales is necessary on
The considered market.
The world market of the lighting equipment is in stagnation with
1995, basically owing to the superfluous industrial
Capacities and delay of growth of demand. In view of low profits or
Even losses some companies (switching on "Philips") were
Are compelled to suspend realisation of their investment plans.
Recession in the given market has led to liquidation of some the small
The companies-producers that will allow firms with the considerable
With financial resources (such as "Philips" and "GE") to operate in
The future in the conditions of a smaller competition.
Characterising activity "GE" in the Indian market of the lighting
The equipment, it is necessary to specify, that its production has started to arrive
To India in 1963 on channels joint with the company "Mysore
Lamps "the enterprises where"GE"owned 49 % of actions (other part
The capital Karnataka) belonged to the government of piece. However
Accepted in 1973 in India adverse for foreign firms
The law on regulation of currency transactions has compelled "GE" to refuse in
1979 from cooperation with "Mysore Lamps".
Followed then liberalisation has induced "GE" to return on
The Indian market and to create there some joint ventures -
On manufacture not only the lighting equipment, but also
Expensive plastic, electronic medical systems,
Instrumentations, refrigerators and other household
Cars.
As the partner in the lighting equipment it has been chosen
The small company "Apar Lighting" - branch
Based in Mumbae groups "Apar". Such choice has been caused
That lamps of this company with a trade mark "Cema"
Were in demand at the Indian buyers. Besides, it
Showed active interest to new technologies, had the effective
Control system of manufacture and the finance. Cп?п п п я я п?п я firm
"GE Apar" has started to operate in April, 1993
Initial investments of the new company have made 600 million and.
rup. (18 mln. dollars) also have been made on an equal footing.
The company began to produce high-quality lamps nakalivanija,
Fluorescent lamps (including compact), gas-discharge with
The big force of light and galogennye lamps. These products have begun
To arrive on the market in March, 1995, i.e. In two years after
Joint venture creations. Their "start" in a retail network
It was carried out gradually, in specially chosen for this purpose
Cities.
Cя я п я п пЁп я the companies consisted in changing the relation
The Indian buyers to the lighting equipment as to especially
To utilitarian subject. Besides creation of a separate marketing network
For expensive products, aimed basically on capitals of states and
The basic cities of India, powerful advertising of lamps "GE" has been organised
As the high-quality production symbolising the defined
Style of a life and decorating an interior.
In 1995 "GE" has allocated for publicity of 50 million and. rup.
- cя п п я , never spent for these purposes any Indian
Producer of the lighting equipment. It also became
To pack the lamps into the colour cardboard involving a look
Boxes. Besides, to the Indian buyers it has been offered extremely
System of guarantees unusual to the considered market, in
Conformity from which they could receive the money back,
If the lamps got by them and fixtures failed in
Current of month after purchase.
Originally the prices for lamps and fixtures "GE" in India exceeded
On 10 - 20 % cost of similar production in the lead on it
Firm "Philips" market. The American company hoped, that
The authority of its trade mark and new marketing strategy "will win"
The Indian buyer, despite rupture in the prices with others
Producers. Subsequently, however, the prices for some products
"GE" have been lowered to more competitive levels.
"GE" it was necessary to face a rigid competition to the party for a long time
The companies operating in the Indian market, such as "Philips" and
"Surya Roshini", and also from producers
"Unorganized sector", selling cheap lamps. A problem
Advancements of expensive production of high quality, the decision
Which basically was based on authority of a trade mark
"GE", it has appeared for the American firm rather heavy, as
The majority of Hindus give major importance to level of the price and
To momentary advantages. Moreover, effect from innovations and
Offensive marketing strategy "GE" was quickly enough
It is neutralised by similar actions of its competitors, which
Too have updated their products and have changed sale tactics. And, at last, on
Production sales "GE" have negatively affected rather small
(In comparison, for example, with "Philips") the sizes of its marketing network in
India and very weak positions in the local market of the lighting
Armatures.
Attractive and colour packing of products "GE" allocated them from
The big number sold in the Indian retail shops
The goods, but created problems for sellers for Hindus have got used
Before purchase to test the lamps necessary to them, and the closed cardboard
Boxes did these tests for the marketing personnel
The inconvenient. Besides, it was not pleasant to many buyers,
That guarantee certificates "GE" have been printed on packing.
And, at last, some have found so "elaborate" packing excessive
For such goods, as lamps.
In 1996 group "Atar", decided to mobilise means for
Other business, has sold to firm "GE" the 50 %-s' share of participation in
The capital of their joint venture and the last began to be called
"GE India Lighting".
Observers consider what for the present too early to judge successes
"GE" in the Indian market as she sells there the
The lighting equipment only since 1995 But very few people from them
Doubts that new energosberegajushchie products of this
The companies eventually will find road to average heart
The Indian consumer.
//* an information Source: BIKI, 9.07.98
//* Reg. Nom. - 1080700147.01-------------------------------------------
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