Samsung is a name that the Indian consumers relate to very well due to the brand’s long presence in the country in the mobile technology and white goods market. They are a reputed brand as per the Indian consumers’ perspective that we have figured out in various researches carried out over the previous months.
GFK is a well-known research institute that released a set of data showing Samsung’s leadership in the microwave ovens market in India. The data shows that the Korean electronics giant captures the highest market share. Their focus on constant innovation and efforts to make smooth and user-friendly experience has led them to the top position. The previous data shows their gradual growth over the past three years from 32% in 2016 and 2017 to 34% in 2018.
In the Indian context, microwave ovens are not a very desirable product as per the trends of the past decades. The major reason was the Indian lifestyle, which allowed most of the Indians to get a home-cooked food hot served to them. Women carry the highest responsibility in India for cooking and maintenance of the homes. If you look at the percentage of women working full-time jobs in the past 2 to 3 decades, you can see that the numbers are very less. This is the reason that these women got an ample amount of time for cooking and families seldom needed a microwave oven for their homes.
Recently, the number of women working full-time jobs has increased rapidly. The society has also opened up a lot and the pressure on a woman to cook for the family have decreased too. These reasons combined had a positive impact on the kitchen appliance market especially the microwave ovens. Families are not only using a microwave for re-heating anymore.
More and more users are utilizing a microwave oven for full cooking purposes. This reduces the time taken for cooking as compared to the traditional cooking methods. Moreover, a microwave oven helps the user to be very precise as various factors can be set through a timer such as temperatures, cooking time and other features such as heating direction, airflow and so on.
Samsung, as we all know has a huge offline presence in the market and its offline channels are well equipped to carry the huge loads for supply purposes to every nook and corner of the country. The company claims that the maximum sales of microwaves have been in the Northern part with a 35% market share. The company takes measures to create awareness about their products, especially in the tier II and tier III cities.
Samsung is known for their smart technologies in mobile phones and home appliances and microwave oven are no different. They have developed an app for the users to control and give instructions to the oven over the internet. This application can also recommend delicious recipes depending upon the ingredients that the users have at their disposal.
Rural electrification programs have become another reason for the growth of microwave ovens market. The smaller towns and villages lacked steady electricity and hence the families avoided many electronic appliances. They tend to purchase only the basic appliances such as Televisions and Refrigerators etc. However, the more villages and small town are getting a steady supply of electricity and internet connections, the more the people from these areas are willing to purchase the new appliances unknown to their earlier generations.
The microwave market in India is worth INR 850 crores but lacks much competition. According to an Economic times report they have only 15 players in the market, which means that the major players such as Samsung have an upper hand due to their enormous supply channels and marketing budgets.
Other players in the microwave market such as LG, Godrej, IFB and Panasonic are also very reputed in the electronics market but not so in the microwave market. These companies possess the potential to trump Samsung in the microwave market if they too work on their supply chain management and use proper channels for marketing. LG, for example, is an extremely popular brand in India and their prices are more often cheaper than that of Samsung’s. There is almost no difference in quality and after-sales service. This is why LG has a high chance of leading the market if they ever try.