Demand for home appliances rises as focus shifts to functional kitchens

BSH Home Appliances, a subsidiary of BSH Hausgerate GmbH, a global player in the home appliance industry, has recently unveiled its first Experience Center in Hyderabad at Gachibowli. Its portfolio includes brands like Bosch, Siemens, Gaggenau, and Neff as well as the ecosystem brand Home Connect and service brands like Kitchen Stories. BSH makes its products at 39 factories. Saif Khan, managing director and chief executive officer, BSH Home Appliances India tells about the preferences and more to B Krishna Mohan
Excerpts
Purchasing trends
The purchasing trends are changing. People are looking at the premium segment and simple user experience. Covid has brought a lot of focus to the kitchen. When we were all locked up in our homes, the kitchen was one area where we are all coming together as a family and spending time. So, consumers are now keen to have a good functional kitchen. Many are looking at sustainable as well as smart appliances. Sustainability is a focus for BSH. The appliances that we sell, like the dishwashers or washing machines, are sustainable products as they aid in saving water by 40-60 per cent.
Willingness to spend on the kitchen
Homes are getting costlier. People now want to spend on better experiences in the entire house. The aspirational quotient is on the rise. Customers are spending on features that give them comfort and reduce burden. So, various appliances are in demand. While there is an upward trend already happening, focus is also shifting to premium segments in Andhra Pradesh and Telangana, perhaps higher than the national level.
Spending
The kitchen spend can be about Rs 2.5 lakh. The prices of refrigerators and washing machines start from Rs 25,000 to Rs 35,000 and rise with specifications. RBI has said the retail loan segment is increasing. Credit is an important aspect in the industry. Consumer finance today in India is pretty easily available. It is helping us to move more towards a consumption-led economy. So, we see this as a positive trend from the consumer point of view. With finance options available, they can actually end up buying better products, so that they last longer.
Network
Our brand is catered through more than 1000 touch points, which includes five exclusive brand stores. We have a plant in Chennai to make washing machines and refrigerators. We have a new line setup now for portable gas cooktops. The current localisation level is at about 60% and work is on to take it to 70-75% by 2025. We are pursuing a making in India for India approach. We will be getting into many segments that the Indian consumers want and which we might not be selling in our global range. But for India, they are specifically being brought in.
Top preferences of home makers
We are seeing a demand for top load washing machines. This is a range that Bosch has not brought globally but in India, we have introduced it. We have seen a big year-on-year growth in this. The demand for refrigerators, washing machines, built-in appliances and dishwashers is on the rise. Ofcourse, dishwasher as a segment is still in its infancy in India. Again, AP and Telangana are taking a lead in this segment. We are working with a lot of real estate developers across the country to offer them solutions that they can bundle with the apartment itself. We are also in talks with many real estate players in Telangana.