Electrical Switches Market in India

“Switching it on”

Electrical switches comprise three types: Modular, Semi Modular and Non Modular, which have traditionally been the mainstay of the market. In volume terms, 32% of all switches sold were modular switches while only 9% were semi modular, in the last quarter.

West zone registered the highest contribution of modular switches while East registered the lowest. The West zone also registered an overall increase in sales of all brands of non modular switches (specially the local brands) due to “Grah Pravesh” during Ganesh Chaturti. While modular switches did no grow over the same quarter last year, there was a 25% volume growth in non-modular switches. Importantly, semi modular switches registered the highest growth, clocking an impressive 36% over last year.

Sales by Product Type:

Switches are stocked or sold by 94% of the electrical goods retailers. Of this, modular switches are stocked by approximately 61% of the electrical retailers. Non modular switches registered the highest presence in the switches category, while Anchor modular and non modular switches have the highest presence in town tiers 1, 2, 3 and 4.

Sales by Channel Type:

Project sales are those affected by outlets to institutions such as schools, colleges and housing projects whereas retail sales comprise sales to smaller individual customers. Project sales constituted only 20% of the total sales of switches and were highest in South with Hyderabad being the highest contributor in the sales of both, modular and semi modular switches. Schneider switches had the highest sales contribution in project sales while Anchor non- modular switches had the highest sales contribution in retail sales.

Popular Brands and Prices:

Anchor, Havells, Legrand, MK, Wipro and Orpat are some popular modular switches. Philips has, as of yet, failed to make a mark in this sector. Anchor, GM, Kolors, Pretty are popular brands in semi modular switches while Anchor is the biggest brand in non modular switches along with local and regional brands.

Market Shares:

While Anchor remains the market leader, Havells saw a significant increase in its market share in the modular category because of better distribution service and increased promotional activities. Regional and unbranded players which were witnessing a rise in market shares saw a decline because of increased promotional activities by brands like Havells and Legrand. Anchor non-modular switches lost market share to local brands in the East Zone primarily because of the various trade related incentives offered.

Digging Deeper in the Bag

MALL RATS: A DAY IN THE LIFE OF THE TYPICAL SHOPPER

A few years back, the Indian consumers had less ‘entertainment’ options- people had to choose only between shopping, movies or generally hanging out on a holiday. But now thanks to the advent of malls and, consequently, fully equipped, snazzy market places all these activities can be performed at the same time, under the same roof – and at one’s own convenience! This aspect of shopping for big brands in ‘big branded malls’ is reflective of the ever so increasing cosmopolitan character of India’s largest and growing cities/towns as more and more shoppers are becoming brand conscious and are willing to spend money on their purchases.

It is this behavior that Market Pulse wanted to understand as part of tracking the contemporary urban consumer’s ‘shopping’ psyche in terms of brands preferences and average expenses on the same by both ‘type’ as well as brand-wise.. We carried out an extensive shopping survey across Delhi NCR in leading malls including The Great India Place Mall (Noida), Pacific Mall (Ghaziabad), Ansal Plaza, etc.

MALL VISITS: Typical products shopped for in a mall are apparels, cosmetics, electronics, footwear, gifts, groceries and toys. Popular apparel brands are Indian Terrain, Pantaloons, Lilliput, Adidas, Raymond, Wrangler and Lee. Being feverishly scanned by people are popular electronic items like mobile phones, laptops, DTH and digital cameras. Popular brands in these categories are HTC, Nokia, Sony Ericson, Sony Cyber shot and Sun Direct for DTH.

SHOPPING EXPENDITURE: On an average, people spend approximately Rs. 1,700 on apparels and Rs. 10,000 on electronic items. Average spending for cosmetics and footwear is Rs. 250 and Rs. 2,600 respectively.

OUTLET PREFERENCES: Popular mall outlets are Big Bazaar (preferred for its reasonable prices and attractive deals), Globus, Redtape, Woodland, Pantaloons and Shopper's Stop.