According to market sources, Voltas led the AC market in FY 2016-17 with a 19.5% market share followed by South Korean chaebol LG, which logged in 18.4%. The imagery of ‘trust’ being part of the Tata group, the ‘allweather’ and ‘energy efficient’ brand positioning – all had a role in reinforcing the dominance of Voltas. Voltas had ceded ground to Korean rivals in the late 1990s and the early part of last decade. LG’s decision to bring to India its international strategy of marketing only inverter ACs has cost it market share in the split AC market. LG claims to have managed its transition from fixed speed ACs to 100% inverter ACs, and to lead with 47% share in this segment. Vijay Babu, business head for ACs at LG Electronics India, estimates that the industry share of inverter ACs within split air conditioners has increased from 12% in 2016 to 31% in 2017. In February this year, lighting and electrical appliances major Havells announced its move to buy the consumer durables business of Lloyd Electrical and Engineering for a staggering tag of Rs 1,600 crore. In less than 50 days since the acquisition was completed in May, Lloyd has done a business of close to Rs 300 crore. Its success can be gauged from the fact that the little-known Indian brand has overtaken the other South Korean chaebol Samsung.
(Source: ET Brand Equity, August 4, 2017)
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