German consumer products giant BSH Home Appliances is placing a big bet on the premiumisation trend unfolding in the Indian market. Rudolf Klötscher, the Chief Sales & Service Office at BSH Home Appliances, mentioned that the company’s business in India saw a double-digit growth in 2024 and anticipates this upward trajectory to persist in the future. The focus will be on enhancing distribution channels, particularly in tier-2 and tier-3 markets, and expanding the range of products to sustain this growth.
Rudolf Klötscher stated, “India holds a significant position in our market strategy and is among the rapidly growing markets worldwide. The country presents vast opportunities due to its massive population and the relatively low penetration levels across appliance categories. Our business in India has been experiencing double-digit growth, and we foresee this momentum continuing.” The company offers premium brands such as Bosch and Siemens, along with the luxury brand Gaggenau, covering a variety of products like refrigerators, washing machines, dishwashers, cooktops, and ovens.
In response to concerns about urban slowdown, Klötscher acknowledged, “Currently, there seems to be a slight dip in consumption momentum in the market. However, taking a medium-term view until 2030, we are optimistic about the Indian market’s growth in terms of both value and volume year on year. We are surpassing the market growth rate and have a well-defined strategy to expand our business.” BSH Home Appliances is keen on strengthening its presence in tier-2 and tier-3 markets through its go-to-market approach, along with continued investments in the Chennai factory and the introduction of new products across categories.
Klötscher emphasized, “We are witnessing a trend towards premiumisation not only in tier-1 markets but also in tier-2 and tier-3 markets. Indian consumers are gravitating towards products that offer enhanced value and larger capacities. With our diverse product portfolio, we are well-positioned to cater to the evolving aspirations of Indian consumers.” Addressing the impact of the ongoing tariff war, Klötscher expressed, “I personally believe that due to these tariffs, India is becoming an even more attractive market. There are not many markets experiencing this level of growth.” The company currently operates 103 brand shops for Bosch and Siemens in India and plans to double this number in the near future to enhance distribution.
Furthermore, BSH Home Appliances’ business in India is observing significant growth in the e-commerce segment, contributing 15% to overall sales. For instance, dishwashers saw a sales increase of over 55%, while 8, 9, and 10 kg front load washing machines experienced a remarkable growth of over 70%.
In conclusion, BSH Home Appliances is optimistic about the growth prospects in the Indian market and is strategically positioned to capitalize on the premiumisation trend. With a focus on expanding distribution, introducing new products, and catering to evolving consumer preferences, the company aims to sustain its growth momentum in the coming years.