India is an important market for household appliances. What are the most important home appliance purchasing trends you have seen in the last year?
Many things have drastically changed in the past two years. For large sections of people, the home-bound environment has changed. This is reflected in their purchasing decisions. The need for convenience, efficiency and smart appliances has skyrocketed. We would have seen that people spent a lot more time at home during Covid and wanted to enjoy gourmet cooking. The demand for gourmet cooking equipment was on the rise.
We are seeing a sharp rise in categories such as garment steamers. The category has more than doubled over the past year.
Many appliances that offer superior convenience and intelligent solutions to consumer issues are getting bought. Air fryers are one example of a category that has done well in the Covid period. There is also a rise in demand for vacuum cleaners and other home improvement products. Philips has just launched a stick vacuum. The category of home appliances has seen a healthy growth.
What were the online trends you saw pre and post the pandemic in terms sales?
Online platforms have seen a rise in new customers during the Covid period. This is also true for Philips and the home appliance industry.
We have seen a rise in e-commerce sales. People took advantage of the new market to shop for revenge. In 2022, offline sales have increased by 5%. Philips continues to be successful in both online and offline channels. We have maintained our shares in both channels even after Covid.
The rise of ecommerce and mobile phone penetration has led to people using online platforms to learn and discover. People go online every time they want something and then read reviews. What if the consumer decides to buy something different offline or online? It isn’t the behavior that the consumer displays or is expected in the future.
Philips’ D2C platform is also working well for us. Our customers have many unique experiences that we offer, which aren’t available on other e-commerce sites. For instance, we offer live demonstrations and a conversation about a product to the customer. The brand is more appealing to consumers who buy directly. D2C brands are gaining popularity because people love to be able to purchase something new or unique. Philips has launched a compact product: a sneaker cleaner that is exclusively for D2C. This launch was a great success for the brand. It also increased consumer engagement. Propositions like these are likely to encourage consumers to visit D2C platforms.
Philips is known for its innovation, with the most recent addition being a pressurised Steam Generator Iron. Can you talk about the R&D focus of the brand?
It is clear that Philips’ innovations have been rooted in consumer challenges. Air fryers were a new concept at that time. We came up with a product called fabric shaver because we realised that it’s important for the consumers to keep their clothes preserved.
A lot of our R&D happens in Europe. Our local innovation center in India works on several Indian products. Philips is an example of a company that pioneered technology that allowed you to use a mixer grinder as well as a food processor in one device.
R&D is an ongoing process and we continue to identify the pain points and work on them.
Could you please elaborate on the media mix and explain how it has changed.
Philips is the brand that sets the tone for the industry. We are not just confined to the metros but also to reach consumers in Tier 1, 2 cities. Our presence has been strong in TV and print over the years. But very consciously, over the several years, we also indexed ourselves highly in favour of digital mediums because we realised it’s a high-engagement medium. Digital media allows consumers to spend more time on the message and pay more attention. Digital media allows for two-way communication. It’s also an excellent medium for learning and discovery.
The 10-year-old trajectory shows that the focus on TV and print has declined and digital has increased.
The way home appliances communicate is changing. It was previously women who operated the kitchen, but now it is men. What are your thoughts?
It is becoming more inclusive to consider home as a space. This trend is evident in the homes of consumers as well as our own homes. As the house grows, more and more responsibility is shared by members. This will reflect not only the way brands communicate but also how they design products. Intuitive user interfaces are becoming more important in product design.
Philips is a brand that has always tried to be progressive in depicting the household. Way back in 2014, our air fryer’s maiden communication featured a couple where the male partner was cooking. Now, I see other brands following suit. I also believe it’s a reflection of our times and I believe it’s there to stay.
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