Almost 60 to 70% of our marketing spends will be on digital in 2024: NS Satish, Haier India

• The company is anticipating 35% growth in 2024

• It will focus on community-based branding and customer satisfaction over celebrity endorsements

• 98% of Haier India’s appliances are manufactured locally

• The company aims for Rs 8,500 crore this year and Rs 10,000 crore by 2025

“A company spends crores of rupees to get a new customer whereas it takes little to hold on to an existing customer. That is how, I would say, we have celebrated creating a brand that is sustainable in terms of the growth trajectory that we have built,” said NS Satish, president, Haier India at the event of its 20th anniversary on Wednesday, March 6, 2024.

Being at the helm of innovation driven by evolving consumer needs, the company also unveiled its new vision through a new brand slogan, More Creation, More Possibilities. Satish says that the company’s core philosophy has always been about what kind of value it can create.

“It is not about business, but the value creation which we do starting from our employees. We believe in a startup culture. We have achieved a 25% year-on-year CAGR in India and are anticipating 35% growth in 2024. The social media views and online ratings are the testimonials that the customers are happy and content,” he says.

According to Satish, there are two types of customers - the first one is an evolved customer and the second one is an underpenetrated customer. An underpenetrated customer is a first-time buyer whereas an evolved customer has already bought appliances but can replace them with newly launched ones.

He asserts that the next change in consumer behaviour is the evolution of new-age consumers since the average age of decision-makers has declined in India. “The new age consumer does not look at the name of a brand. Instead, they know what they are looking to buy and are well-informed. From people who are changing because of technology to the ones coming for the first time, we are targeting everyone. We assure (consumers) about the quality which we are delivering,” he says.

The Make in India initiative was launched globally by prime minister Narendra Modi in September 2014 as a part of India's renewed focus on manufacturing with a ‘New Mindset’, ‘New Sectors’, ‘New Infrastructure’, and ‘New Processes’ as its four pillars. Following the same, Haier India will be focussing on localisation as much as possible to ensure quality which will be faster and more efficient over the next two years.

Talking about how the company is making use of Make In India, Satish says, “98% of our products are manufactured locally and this is also a variation of localisation. Our three-door side-by-side refrigerators and LEDs are also manufactured locally. We really appreciate being a part of the government’s initiative.”

A community-based brand prioritises building loyalty through a focus on addressing people's needs rather than solely driving sales transactions. This approach allows for a deeper level of interaction and support, ultimately strengthening the relationship between the brand and its audience.

Various brands like Apple, Starbucks, Lego, and Red Bull have their community built and are centred around reinforcing their brand image and values. Satish explains that Haier India is in the process of community building as that is going to help with the company’s sustainable growth. “We are also building a community for women who are working in different paths of their life. This is nothing about being commercial but only about recognising these women’s efforts,” he says.

The organisation was also the ‘Digital Streaming Sponsor’ for the Indian Premier League (IPL) 2023 in partnership with JioCinema. Concerning the partnership in this season, Satish informs that Haier India is in the process of negotiation and will soon provide an update about it. “Almost 60 to 70% of our marketing spends will be on digital medium,” he says.

Also Read: Localisation, digitisation, and consumer education will define Haier's 2024

Onboarding celebrities as brand ambassadors has always been proven effective while promoting a product or service. However, Haier India believes that its consumers are the face of the brand. Satish explains that instead of allocating the energy and resources to rope in a celebrity, the company would prefer to invest those resources in making its consumers happy.

“Our customers are our brand ambassadors. We strongly believe everybody runs behind successful people but nobody runs behind a person who has come fourth or fifth. So, we tend to pick that. We had launched a campaign with Dipa Karmakar, who is an Indian gymnast, and other people who have contributed to the sports domain but lacked recognition,” he adds.

In 2019, Haier India launched a campaign called Perform Big, Silently, featuring women professionals working in the corporate world. It showcases their unassuming yet powerful presence, in parallel with Haier India’s washing machines powered by the direct motion motor. Satish says “It is about recognising those women who have done something for themselves as well as for the other people in life.”

Speaking about the organisation’s current market share and upcoming plans for 2024, Satish states, “We are about 10% in terms of the value share in the market. In terms of category, our refrigerators have about 14 to 15% share; ACs, washing machines, and LEDs have about 7-8% share. We have planned to achieve Rs 8,500 crore this year and Rs 10,000 crore by next year (2025) and we are on target with it.”