This is the sixth AC experience store opened by Mitsubishi in 2019. The first of these was opened in Mumbai in January 2019
Neeraj Gupta, senior general manager, Living Environment, Mitsubishi Electric India (MEI), said, “Many shoppers in India, still prefer to try out products before buying them. There is a whole set of customers that prefer someone to walk them through the purchase process. MEQ Cooling Planets is a unique idea because it encourages customers to visit the store, take a proper look and then make a decision. On the other hand, MEQ Hiroba provides customers complete knowledge in the field of air conditioning.”
The Japan based Mistubishi Electric, after the opening of its most recent AC showrooms, has 125+ exclusive AC showrooms in India.
Interestingly, this the seventh AC showroom by Mitsubishi Electric in under six months time. The company in the last five months has opened six showrooms for its ACs one each in Karnal, Alappuzha, Chennai, Cuddalore, Noida and Mumbai. The move is also interesting as a lot of companies are rushing towards expansion in the online sales channel.
Yozo Ito, director and business unit head, Air conditioners, Mitsubishi Electric India (MEI) said, “These are exclusive showrooms for display and sales of Mitsubishi Electric Air-Conditioning products to encourage the customers to have a touch and feel of Mitsubishi Electric products. This will help enhance the visibility of Mitsubishi Electric as a premium Air-Conditioning brand. These exclusive showrooms will display the entire range of Mitsubishi Electric products which includes room air-conditioners, packaged air-conditioners, City Multi VRF systems and Jet Towels.”
AC market size in India
India air conditioners market, as per a report by Techsci Research, stood at over $4.3 billion in 2017 and is projected to grow at a CAGR of more than 17 per cent, to surpass $11 billion by 2023. Anticipated growth in the market is led by rising infrastructure development in the country coupled with growing demand for residential and commercial spaces.
A report titled ‘Focus Shifting to Inverters‘ by Motilal Oswal in 2017 said that Mitsubishi Electric offers lowest margins to retailers. The report read, “Voltas, LG and Lloyd Electric are very dealer-oriented and offer high margins, while Samsung and Blue Star are not equally so.”