In the wake of turbulent times, Blue Star International dove head first into the uncertainty and embraced it. Their increase in demand, although slow, still surprises consumers and investors worldwide, especially since the household appliance industry has been dwindling. The cognition that went into this outstanding performance is detailed below:
- The Indian Scenario: Atma Nirbhar Bharat
The Indian government’s pitch to stick with ‘Make in India’ appliances has led to forecasters stating that the price for air conditioners have risen. Cutting its dependence on exports, the prices of nine air conditioning constituents will rise by 50% to 165%, propelling domestic manufacturing as a result. This initiative has also aided in the subtle advertising of household and office appliances, and has contributed a little to the augment in demand rates for Blue Star AC.
- The COVID-19 Impact
Similar to what most businesses underwent, Blue Star had not predicted the scale of events that would unfold as a result of this crisis. Making a quick call, they decided to research into what consumers required during such distressing times, and how their resources could ease the widespread frustration amongst individuals worldwide. They realized that specific segments, such as processed foods, healthcare, pharmaceuticals, and residential sectors began developing, as citizens began working from home, and spending more on medicines and their overall health. As the government begins rolling out vaccinations this year, Blue Star realized that around Rs. 300 crores will be invested in the vaccinations alone, and as a giant corporation with a 65% share in the pharmaceutical sector, they will have the funds to invest in their air conditioning systems, and better the prospects of these appliances for their customers. Moreover, following this pandemic outbreak, consumers turned to investing in appliances that protected their immune systems, and prevented them from being exposed to various health illnesses. Further, Blue Star predicted that increases in residential projects would augment the demand in low-end air conditioners. The demand for virus deactivation technology (VDT) integrated in air conditioning systems became the focus of Blue Star, as they expected 15% of their sales to arise solely from this venture.
- Summer Demands
Summer in most countries is normally associated with an increase in sales, which was exactly the case for Blue Star ACs. As time progresses, climate conditions further deteriorate, resulting in summers becoming increasingly harsh in certain regions. Blue Star plans to target these regions for the growth in their sales. India, in specific, leaves room to significant growth during peak summer time. A statement issued in 2018 by the Joint Managing Director of Blue Star Ltd., B Thiagarajan, stated that room ACs offer huge potential in India, as the market size is only 5.5 million units with 4% market share as opposed to 80 million units in China with 30% market share.
- Technologically Advanced
The recent Blue Star AC line has outsmarted other air conditioner producers by putting together the most efficient pieces of their previously high demanded systems. The 5-star inverter split, their latest breakthrough feature, incorporates virus deactivation technology with their extant PM 2.5 properties. This eliminates bacteria, ensures precision cooling technology regardless of outside temperatures, and operates in winters as air purifiers. Their DBTUUV filter accounts for zero maintenance cost (terms and conditions apply), ultraviolet germicidal irradiation (UVGI), extreme energy efficiency display, and precision cooling technology. Overall, the integration of climate control and bacteria eradicating technology has led to massive increases in sales, and consumers reportedly have been saving up to invest in their appliances.
- Internal Investments
Following the 2019 press release by Blue Star where they declared their plans of investing Rs. 185 crores in their research and development department, consumers have begun comparing the Blue Star AC technology to Samsung AC technology. The internal investment Blue Star had talked about, in addition to their introduction of 75 new air conditioner models in 2019, till date, has facilitated the growth in their sales rates. Samsung ACs, which are equally accountable for building auras of excitement among consumers, has been in the spotlight for a few months because of its air conditioning range. While it is difficult to say which brand outperforms the other, some consumers have expressed that while Samsung ACs have more efficient virus elimination technology, Blue Star ACs have better climate control features, and have also integrated supplementary features to provide consumers with various options when operating their air conditioning systems.
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