As Daiwa moves ahead towards enabling more satisfied customers and creating greater level of profitability for its channel ecosystem – the company is looking forward to further strengthening its bonding with the chanel community in the online as well as offline space.
Arjuun Bajaj – CEO, Daiwa India interacts with Zia Askari from ChannelDrive.in about the company’s current focus and its future plans for India.
Please share details about Daiwa and its journey from its inception?
Daiwa is born to bring the latest in technology at most prudent prices in the Indian market. Daiwa though is a very young brand; it has challenged the industry norms in the Indian market and has tried to carve a niche for itself but with bearing in mind of the customers’ requirement as the paramount.
At the same time, Videotex (The Group Company of Daiwa) enjoyed strong popularity being one of the largest ODM Brand making TV’s for several others, with complete backend integration. Blending both the situations, we started Daiwa in 2016, which is a complete Made in India TV, specially designed for the needs of the Indian Consumers. Today Daiwa, brings the complete back end integration for manufacturing LED TV’s in India and is currently having a capacity of producing 2500 TV’s in a day and also planning to invest more in R&D/Manufacturing. Our TVs remain the best seller and have an edge over others with competitive pricing being offered with the latest technology.
For instance, Daiwa offers Web play remote with its 4K TV while others give a normal TV which hampers Smart TV functioning .Also we tailor solutions as per the Indian audience unlike brands that simply import the solutions to India.
What is the channel strategy of the company and how are you planning to expand in terms of adding more channel partners?
The role of Channel Partner is the most important part for your business to grow in India. We need to devote resources to channel management. We have a full-fledged sales team to build the channel network in various states and their sole responsibility is to drive revenue through those channels. We need to also have better relationships at each step of our channel. It is very essential to speak to the channel partners to identify problems and solve them and also to know whether your programs are working with the partners and how to make them better.
What are your current priorities for the Indian market? What kind of product innovations can we expect from the company in the coming months?
Indian Market at present is very aggressive, likewise Mobile industry; TV industry has also seen a load of fragmentation, it’s in the same transition where Mobile Industry was; innumerable new brands have cropped in for which now ‘sustenance is the key’. In terms of expansion, we are focusing on the establishment of stronger distributor network, bringing the online-offline mix, connecting to the consumers from the grass-root level.
In terms of product innovations, very recently we have launched our affordable 4K TVs. And now we are coming up with a whole new range of Premium 4K TV’s and the features are going to be advanced and never seen before.
What are the growth prospects for the organization in the consumer electronics space? What are your plans for the next two years?
As part of a wider set of nation-building initiatives, Make in India at the moment unveils 4K TVs with user-friendly interface and Washing Machines. Since India’s electronic business is one of the largest across the globe, and to subsequent this growth we are going to increase our sales base in different states, since business today is all about an above reproach mix of technology, innovation, quality and cost. Our Plan is to build a strong sales network, launch more smart TVs and enter into different consumer Durable category in the coming 2 years.
What are the latest trends in the industry and how they will impact the market?
TV segment is highly cluttered with several new entrants who have also challenged the old established players. These days grabbing Consumers’ attention is defined by the Technology, currently it’s the trend of Smart TVs, and UHD/4K LED TVs. And the reasons for that are omnipotent platform visibility, inbuilt Android operating system applications, and the best part, elite processors to respond every command promptly .In addition to this, the product prices have been reduced drastically, while consumer’s preference for bigger screens has increased i.e. preference shift from small-sized TVs to the large ones. The consumption pattern does not just dominate the Tier 1 Markets; the pattern has also been adapted by Tier 3 and Tier 4 markets, reflecting need for quality products with value-added benefits. Viewing the market trends now, apart from an enhanced integration of software which is very tangibly expected in the upcoming TVs, big-screens, rich in features with improved quality would be dominant in the years to come. We can also witness that the lowering of pricing is leading to lower margins for the brands due to the new entrants in the Market. This trend will affect the market in a big way.
Overall the Consumers have already witnessed the development of technology, and now what is required for the industry to grow is growth in terms of reach and establishment of right touch points across the nation
How have Daiwa TVs been able to contribute towards the Make in India initiative?
The rise of Import duty for importing a TV to 20% is a win-win for Indian Manufacturers like us. This has helped us become more competitive in terms of pricing and focus fully on Make in India which is why we have now expanded our capacity to 75000 TVs in a month. However, the only problem with Make in India has been the recent rise in the import duty of open cell from 0% to 10% is a big hit to the TV manufacturing industry in India. This has led to a thin gap between importing and manufacturing of panels. The Government must consider rolling this duty out in order to encourage local manufacturing and employment or else this could have a large effect on the dream of Make in India.
The other problem faced is the 28% GST as TV now is more of a necessity rather than Luxury.
How did the online channels like Flipkart or Amazon help Daiwa TVs establish themselves in India?
Online Channels like Flipkart and Amazon have undoubtedly given the Brand Daiwa recognition and Credibility, in the cluttered TV market.
Keeping your brand top of the mind is also imperative to influence a consumer’s buying decision. To top it all off, many consumers today lack trust in brands, so making your brand authentic gets simplified with these associations.