The summers are here and so are IPL and the general elections. With the mercury rising by the day, there is a natural surge in demand for air-conditioners. While that is encouraging for the home appliances market, Blue Star Managing Director B Thiagarajan points out: “When such big events happen, there are pluses and minuses
both. There will be a consumption growth now. But you should be able to deliver on time and make it available.”

Consumers today are in a lot of hurry, he said. “A company selling air conditioners cannot say that it will deliver AC the next day and install it the day after that. The customer wants it today, you deliver and install it today,” B Thiagarajan said, explaining the growing importance of customer centricity and experiences.

On elections adding to the demand, the MD said: “There will be public places where water coolers have to be installed. It could result in consumption growth - in a restaurant or a retail chain,” he said. The challenge, he adds, lies in equipping oneself to meet the delivery requirements.

At a recent exchange4media event too, Thiagrajan had mentioned how with the onset of the summer season, companies like Blue Star are gearing up for a battle in the advertising landscape. Brands are tightening their belts to amp up communication, given it is also time for vacations and big-ticket movie releases.

Generally, summers see a 40% surge in demand, Thiagrajan shared. Therefore, the brand has stepped up its advertising game, by onboarding Virat Kohli as the brand ambassador. Further, to make the brand relevant to younger consumers, it plans to leverage digital and influencer marketing options too, he said.

He explained that when it comes to air-conditioning in the B2C segment, the company needs to reach directly to the consumer. “We have to make the brand relevant to the consumer, which is why we went to Virat Kohli. Mass media digital penetration is important and IPL plays an important role here. In the case of commercial refrigeration, we do not have that challenge,” he further shared.

On the advertising media mix, Thiagrajan said: “Digital is set to occupy around 40% of the company’s AdEx. There is also a growth in search volumes on the brand’s e-commerce channels, due to which online retail is alsomoving up the priority ladder for the B2C business.”

Sharing more on the company’s B2B segment, Thiagrajan mentioned that over 70% of the company’s B2B consumers come from tier 3 and 4 markets.

In India, growth is driven by the aspirational middle class, Sharing figures for the refrigeration market, Thiagrajan added. “Overall, the commercial refrigeration market is set to double and reach Rs 10,000 crore in the next 4 years. The current market size for this segment is around Rs 4,500 to Rs 5,000 crore.”