India is set to enter the elite club of world's major economies with a GDP of more than US$5 trillion per year by 2025 and this has fueled lifestyle aspirations of the upper middle class for higher levels of quality and taste. This is due to the fact most of them are broadly educated and are well traveled as never before. Also they have huge amount of disposable income and as a consequence they are willing to pay premiums for well-designed, well-engineered, and well-crafted goods. Fanzart, India’s leading luxury fan brand, is creating designer fans that look stylish and artistic while also incorporating the latest in technology. In a exclusive interview with Manu Sharma, Anil Lala, Chairman and Managing Director of Fanzart spoke candidly on how he is able to deliver best high quality premier fans and his expansion plans for the Indian market. Excerpts of the interview.
Principle of a fan and how it has evolved today
Growth drivers of the fan market in India
Why premium fans in India?
Target market for Fanzart fans in India
According to a recent report, India has huge number of Ultra net worth individuals: High-net-worth individual (HNWI) and Upper Middle Class. India saw the largest growth in the number of ultra net worth individuals during 2018-19 in the world. This makes them the target audience for companies like Fanzart to expand in the Indian market.
Market size for fan industry and the growth rate
The size of the ceiling, table, wall, pedestal and tower fans market for the year of 2019 is close to Rs 10,000 crore and it is expected to grow at CAGR of 13 percent to a value of Rs 11,400 crore by 2021. "During the present recession the country is going through, we are still growing at 12-13 percent and will continue to do so for the next fiscal as well."
Fanzart expansion in the Indian Market
Fanzart has only a token presence in the online market
Even though Fanzart's products are available on Amazon, Flipkart and Houzz, I'm pessimistic of the online market growing in 2020 or beyond. Presently we have about 2% of our revenue comes from the online market, our showrooms have a explicit display of all our major fan models that help customers' make their decision. Here customers' can get the physical feel and touch of the products.
Fanzart customers' in Indian Market
Hotels - Taj Group of Hotels, Marriott Hotels, The Ritz Carlton, Sheraton Hotels
Coffeehouse Chain: Starbucks Coffee (All India)
MNCs: JSW, Wipro, Microlabs, UB Group, Titan
Holistic Health Centre: Soukya
Clubs - Karnataka Golf Club, BGC among others
Retail Chain - Future Group’s HomeTown Stores across India
Some of the top end Fanzart products in the market?
Advantage of third party manufacturing
During 1990s, Taiwan become a global force in electronics industry and became a manufacturing hub for some of the world's most powerful brands. In the process, industrial design has moved away from traditional low-cost production to the creation of original, high-value products. Companies making new electrical appliances such as refrigerators, air conditioners, television sets and fans have became highly self-sufficient and capable of producing almost anything demanded by overseas clients. "Besides other countries like Thailand, Turkey and some parts of mainland China have also emerging as a hotbed for high-end manufacturing companies. We focus highly on quality that includes the material as well as electric components and unfortunately India's 'Made in India' is not up to the level yet. Where as Taiwan and Thailand have emerged as global player in mass production and modern technology, providing upgraded opportunities for outsourcing that did not previously exist in other nations."
BLDC motor makes the difference!
"Also the noiseless operation of the fan leaves all of the competition behind. The voltage fluctuation range that is tolerated by the fan is also quite high. These two feature makes the Fanzart fans ideal for the Indian market."
Fanzart issues CB, CE rating for its products
The IEC System for Conformity Assessment Schemes for Electrotechnical Equipment and Components (IECEE) Certification Body (CB) Scheme is the world's first international system for the mutual acceptance of product safety test reports and certificates for electrical and electronic equipment, devices and components. Funzart fans are "CB" Certifed making the products unique in the Indian markets. Similarly, CE marking is a certification mark that indicates conformity with health, safety, and environmental protection standards for products sold within the European Economic Area (EEA). The CE marking are also found on products sold outside the EEA if they are manufactured in, or designed to be sold in, the EEA. The CE marking is the manufacturer's declaration that the product meets the requirements of the applicable EC directives. "In fact, Fanzart fans are sold in South Asia, Middle East and also France in the heartland of Europe."
Future of Smart Fans in India