'Indian market is pivotal': AIWA India MD on riding the wave of India's booming consumer electronics market (2024)

In an exclusive interview with Business Today, Ajay Mehta, Managing Director of AIWA India, provides valuable insights into the thriving consumer electronics landscape in India.

Mehta discusses AIWA's strategic approach to capturing market share, highlighting their recent product launches, impressive financial performance, and commitment to technological advancements. He delves into the company's investments in key segments like washing machines and soundbars, highlightingtheir vision for continued growth and expansion in the Indian market.

PD: How would you describe the current state of the consumer electronics market in India? What trends are you observing in the Indian consumer electronics market, especially in the audio and home entertainment segments?

Ajay Mehta: India's consumer electronics market is expanding rapidly due to the country's growing middle class, rising disposable incomes, and quick urbanisation. We see a number of significant trends in the home entertainment and audio divisions. First off, consumers are searching for items that offer seamless interaction with other smart home devices, as the demand for connected and smart gadgets rises. Furthermore, high-fidelity audio and sophisticated sound engineering have emerged as critical determinants in customer choice, with goods with the best sound quality seeing rapid growth. In addition, the trend toward remote work and mobile lifestyles has created a significant need for small, lightweight, and multipurpose audio devices, which is in line with the contemporary demand for ease and adaptability.

PD: With the increasing competition in the consumer electronics market, what differentiates AIWA from other brands in India?

Ajay Mehta: AIWA's legacy of over 70 years in the consumer electronics industry sets us apart. AIWA stands out due to its legacy of innovation, commitment to quality, and a customer-centric approach. We prioritise delivering cutting-edge technology combined with user-friendly designs, providing consumers with reliable and feature-rich products that enhance their lifestyles.

PD: Can you share details about the latest products AIWA has launched or plans to launch in the Indian market?

Ajay Mehta: We are excited about recent new launches in the Indian market: Magnifiq Soundbars in 3 variants – KANDO, KABUKI & SATORI Magnifiq QLED Google TVs in 75, 65, 55 & 32 inches are a few of the recent launches in the Indian market.

PD: How has AIWA India performed financially in the past fiscal year? Could you share some key figures and growth metrics?

Ajay Mehta: Throughout the previous fiscal year, AIWA India's financial performance was rather excellent. Our year-over-year sales growth was 80%, which we attribute to both robust market demand and successful distribution tactics. With an 80% rise in unit sales, we have taken a sizable chunk of the premium audio market.

The company successfully penetrated the market with a strategic mix of product quality, competitive pricing, and effective marketing campaigns. The introduction of new SKUs and products in the second year played a crucial role in this growth, contributing to a 2x increase in sales volume compared to the previous year.

PD: What are your expectations for AIWA India's financial performance in the current fiscal year?

Ajay Mehta: We plan to launch several new models of washing machines and TVs, targeting various segments from budget-friendly to premium in the current fiscal year and are excited about maintaining our growth trajectory. These models will feature advanced technology, energy efficiency, and user-friendly designs.

The introduction of these new models is expected to generate significant interest and boost sales, contributing notably to the overall revenue for the fiscal year.

Currently, Aiwa is operating primarily in offline mode and at a small scale via the website, Aiwa India also plans to expand its online presence. Partnerships with major e-commerce platforms like Amazon and Flipkart are being considered to increase market reach and sales.

Our forecast is for a 75% rise in sales, fueled by the introduction of new products and wider distribution systems. We're dedicated to keeping up our investment in R&D in order to launch ground-breaking goods and preserve our competitive advantage.

PD: Can you discuss any significant investments AIWA has made in India recently?

Ajay Mehta: AIWA India has made strategic investments to bolster our market position. Rs 20 croreinvested to enter the washing machine segment and Rs 10 croreinvested to enter the soundbar segment.

PD:How important is the Indian market to AIWA’s global business, and what share does it contribute to the overall revenue?

Ajay Mehta: It is too early to discuss this on a global scale. The Indian market is pivotal to AIWA's global strategy. As one of the fastest-growing consumer electronics markets, we are focusing on capturing market share in India. We recognise the significant potential for further growth and are dedicated to expanding our presence and offerings in the Indian market.

PD:How is AIWA leveraging technology to enhance its product offerings and customer experience? What are some of the key technological advancements AIWA is focusing on?

Ajay Mehta: AIWA's customer experience and product development initiatives are centred around technology. We are incorporating IoT technology into our products to facilitate smooth smart home integration and improve user experiences. Our commitment to cutting-edge audio engineering guarantees exceptional sound quality, and we integrate noise-cancelling and high-fidelity audio into all our products. We also combine ergonomics and state-of-the-art design to make goods that are useful, aesthetically beautiful, and easy to use. To maintain the dependability and usability of our products, we are also using machine learning to tailor user experiences and predictive maintenance. Our technology demonstrates our dedication to sustainability by utilising eco-friendly materials and energy-efficient components. These technological
developments show AIWA's commitment to innovation and excellence in the consumer electronics market.