AIWA is a consumer electronics company delivering serious audio equipment, having the best acoustic talent, with the highest quality components and world-class customer service.
Mr. Ajay Mehta, MD, AIWA India during a riveting conversation with Mobility Magazine, delineates the reentry of the brand into Indian market, the opportunities in Indian market and the prospects of the brand.
Mobility- Explain the market opportunities that you foresee in the Indian market after re-entry in India post 18 years?
Ajay Mehta – Indian consumer electronics market has grown at a significant pace in the past few years and is expected to register strong growth in the coming years as well. The affordable interest rates of consumer loans and the rise in disposable income are the major drivers for the growth of the market. With easy finance schemes, middle-income group people can fulfill their needs with low-interest rates which is propelling the demand in the market.
Additionally, the Increase in consumption of consumer goods in Tier II & III cities will also be one of the key factors in leading the growth. Moreover, Brands have increased their penetration rate in these cities. Demand for durables like refrigerators, AC, and other consumer electronic goods is likely to witness an increased demand in the coming years, especially in the rural areas as the Government plans to invest significantly in rural electrification.
Mobility- What are the products that you have launched post-re-entry in the Indian market?
Ajay Mehta -We have returned to the Indian market with the launch of a personal audio range. AIWA has introduced five new products in the audio range and plans to expand to other product categories, including high-fidelity speakers, televisions, and air purifiers. The newly launched range of personal audio devices would be available online through e-commerce major Amazon and offline at 500 stores across Reliance Digital and Jio Stores. The range is priced between Rs 499 and Rs 7,999. Moreover, these devices have been made available at special prices for the Indian consumers purchasing from these platforms – AIWA True Wireless Stereo Earphones
Additionally, AIWA products will have their Japanese legacy of product design and quality, designed, and manufactured by product experts from AIWA Japan
Mobility- What are the marketing strategies have you endorsed to keep up the offline & online sales?
Ajay Mehta -India is a large market, to reach our customers across the country we will be using a mix of online and offline strategy. It will help us in maintaining an optimum balance between both the channels. The majority of Indian consumers still prefer to buy offline as most of the consumers still believe in the touch and feel factor of the products. Additionally, we have a heavy focus towards building a robust retailer network and ensure the same products are also available across on major ecommerce websites such as Amazon at the same price. Thus, our products are positioned across various verticals.
Mobility- Give us your take on the PLI scheme.
Ajay Mehta – We are analyzing the possibility of manufacturing under this scheme. For our upcoming products such as TV, refrigerator, and ACs could be contract manufactured in India as the part of first phase. Being a part of PLI scheme will benefit us only however, by the next fiscal year we will be able to get a clearer picture post studying the pro and cons of this for AIWA as a brand.
Mobility- Detail the future growth aspects- Your plan for the next 5 years, technological revolutions that you are likely to come up with, the growth plans, etc.
Ajay Mehta – We are expanding our product portfolio with the upcoming launch of Home Audio Range and few other products such as Air Purifiers, TV, etc. India is a large market, to reach our customers across the country, we will spread our retail footprints with an offline network of 1000 stores across India including Reliance Digital & Jio stores. The majority of Indian consumers still prefer to buy offline as they still believe in the touch and feel factor. Additionally, our products will be available online through e-commerce major Amazon. we will use a mix of the online and offline channels as it will help us in maintaining an optimum balance between both the channels. Our aim is to achieve one-billion-dollar sales in the next five years.