Premium category will emerge as a luring opportunity for players in the Indian electric fan industry: Bonafide Research

Players are aiming to bolster their leadership position in the domestic electric fan market with the help of premium category. The launch of fans under this category is an extension of commitment by national manufacturers to discriminating and quality conscious customers. From the last few years, the industry has witnessed a slew of launches in the decorative and premium fans. India is a warm country and thus fans are necessary. Pricing has been the primary reason for the popularity of fans in India as other cooling options like air coolers or air conditioners cost more and guzzle more electricity. On the other hand, branded fans cost more than Rs. 2500 only which tend to be very affordable as compared to other cooling options. In India, everybody invests according to his or her spending power to keep home and offices cool. Premium segment consist of decorative and designer fans with added features and are designed to give sleek and stylish look to the house. Premium fans now come with broader & aerodynamically designed blades for effective air circulation and heavy-duty motor for greater performance. Moreover, these fans are also available in various attractive colours to lure customers. This category was growing faster than the industry in the period between 2011-2016. According to recently published report of Bonafide Research "India Electric Fan Market Outlook, 2022", the organized fan market is expected to grow at a CAGR of more than 13% in the next five years. The organized fan market comprises of crompton greaves, usha, orient etc. There are three categories in which the organized electric fan market is divided viz. economy fans, regular fans and premium fans. Economy fans are those which are priced below Rs. 1200, regular fans come in the range of Rs. 1200 to Rs. 2500 whereas premium fans are priced above Rs. 2500 for a single fan. Regular fans dominate the organized market in terms of value and volume both whereas sales of premium fans are growing vigorously in India. All the types of fans like ceiling, table, pedestal and wall are available in the premium category. There are many new launches in this category which has set the trend of premiumization in the electric fan industry. Sleek and stylish look of premium fans, attractive colours and an undivided attention of large companies in this segment will help the category to grow more faster than before in years to come. According to Anita Patil, Sr. Research Analyst at Bonafide Research, "National players have been setting the trend of launching electric fans in the premium category to tap the fast growing opportunities." Bajaj launched four new super-premium range of ceiling fans. The four models called, 'Winstrim', 'Austrim', 'Magnifique' and 'Cruz Air', have been custom-crafted for modern and sophisticated homes. Usha expanded its 'Striker' fan category by adding new variants in the premium segment whereas Havells unveiled Maestro, Oyster, Flamingo, Fabio, SS390, Mozel, Yorker, Cedar and Penta Force. Havells Standard Electricals brand has also unveiled a premium range of ceiling, pedestal, table, wall and exhaust fans under its stable. Havells is at the top position in the premium fan category and Crompton is the leader in the overall domestic electric fan market. Due to favourable conditions, strengthened distribution reach and brand spend; Crompton now aims to displace Havells in the premium fan category. The company is presently trailing behind Havells in the premium fan segment but has grown three times than that of the segment growth. CG launched a full range of premium ceiling fans in varied colours and styles. The company has also unveiled ‘Prudence’, a premium fan with wooden blades. Orient Electric, another national player, introduced the 1200mm Adonis in five new shades, the 1200mm high speed with nano painting Speed King, and the 1200mm Lenora in four new shades. The company also added the remote-controlled premium fans range. In 2016, Orient Electric announced the launch of its new ceiling fan, Aeroquiet, which promises higher air flow with silence. This is the first in the company's Aero Series range of premium ceiling fans. Currently, Japan-based Hayashi Electric also announced its foray into the Indian regular and premium electric fan market. Major companies operating in the electric fan market of India are Crompton Greaves Ltd., Usha International Ltd., Orient Electric Limited, Havells India Limited, Bajaj Electricals Limited, Khaitan Electricals Limited, Surya Roshni Limited, Anchor Electricals Pvt. Ltd., Polar Industries Ltd. and Luminous Power Technologies Limited.