ASEAN KEY DESTINATIONS
Over 2.1 million electric water heaters sold in India in past 12 months: GfK
9 in 10 sold were rated 4 or 5 star in energy efficiency
November 6, 2015, NEW DELHI— There are various different methods of obtaining hot water for bathing purpose in India, but many of today’s modern Indian households are turning to the convenient method of using the electric water heater. GfK point of sales data revealed that people in the country spent over USD 178 million in the past 12 months on this appliance.
According to the latest findings, consumers in India prefer storage water heaters over the instant type with every seven in ten units sold being the storage type. The cheaper, instant water heaters account for the remaining 30% of sales volume.
“Although Indian households utilize several different methods of heating up water such as boiling, using immersion heating rod, solar water heaters, and gas water heaters; many are increasingly turning to electric water heaters for safety reasons,” highlighted Dheeraj Mukherjee, Senior Director, Technology and Home & Lifestyle for GfK in India. “Although storage water heaters are more expensive, they are preferred due to the larger family sizes in India, which makes more financial sense in the long run.”
GfK reports also showed that demand for the various capacity electric water heaters vary according to regions. For instance, in the last 12 months, the northern region reported a higher proportion (45%) of sales volume for the 25 liter capacity, while the southern and eastern regions prefer the smaller 15 liter (35% & 27% respectively) sized electric water heaters. Meanwhile, 39% of electric heater sales volume in the western regions was contributed by the 3 liter sized models.
It is interesting to highlight that demand for electric water heater in India tend to surge in the last quarter of the year, where 43 percent of full year’s sales volume was concentrated last year. For instance, in the month of October 2014 where the festive period of Diwali took place, the market grew by 78% in volume terms when compared to normal month due to the impact of festive period and change of season.
In a separate consumer study conducted by GfK in 2014, 9 in 10 Indians said they will choose energy efficient products when buying consumer durables. This attitude is further reinforced by the latest GfK point of sales data on electric water heater, where 90% of all storage water heaters sold in the country were rated either 4 star or 5 star in energy efficiency.
“Similar to the previous year, we expect to once again see a strong spike in sales of the electric water heater this coming Diwali festival with changing season,” said Mukherjee. “In the foreseeable future, competition is likely to heat up as manufacturers start to recognize the untapped potential of this market and start to actively launch more brands and innovative models, and market the electric water heater as a necessity to complete the home,” he concluded.
GfK is the trusted source of relevant market and consumer information that enables its clients to make smarter decisions. More than 13,000 market research experts combine their passion with GfK’s long-standing data science experience. This allows GfK to deliver vital global insights matched with local market intelligence from more than 100 countries. By using innovative technologies and data sciences, GfK turns big data into smart data, enabling its clients to improve their competitive edge and enrich consumers’ experiences and choices.
For more information, please visit www.gfk.com or follow GfK on Twitter: https://twitter.com/GfK_en
- Survey covers: Urban India
- Channel covers: Electric shops, Kitchen/Utensils shops, Electrical Material Stores/Electrical counters, Modern Retail (National & Regional Chains), and Small Domestic Appliances shops
- Survey period: September 14 to August 15
PR & Communications
GfK | One George Street #22-02 | Singapore 049145
T +65 6826 8622 | M: +65 9385 0222
Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below