After a lukewarm Diwali response this year, brands are trying different strategies to make up for the low consumer sentiment and a slow economy. Wonderchef is one such company. The cookware and kitchen appliances brand is now vying for revenue share from hardware stores.
"We are now focusing on hardware category where we were not present earlier and have already launched iron and water heaters," says Wonderchef Managing Director Ravi Saxena.
Wonderchef already has a range of products in the cookware, kitchen appliances, cooktops and chimneys segment. Its existing portfolio is positioned for appliance stores and crockery shops.
Saxena says, "The interesting thing is hardware stores have erupted like chemist shops in the country. For every appliance store, there are four hardware shops in an area." The reason is simple -- most of the shopping from the hardware stores is urgent purchases, whether it is to fix a leaking tap or to replace an old light.
The hardware portfolio will allow the brand to expand its distribution reach and penetrate deeper in the top 100 Indian cities it is currently present in. This will also allow a wider reach for its other products such as mixer grinder and blenders.
Wonderchef's irons and geysers are now present in 3,000 outlets across India. The plan is to take it to 11,000 outlets by end of the fiscal. In the next three years, the aim is to be present in 35,000 kitchen appliance and hardware stores.
The firm is likely to expand its hardware portfolio with new product launches in the kitchen fans, focus fans, and kitchen exhaust category.
The hardware segment will contribute to 5 per cent of its gross sales in the coming fiscal. Wonderchef's net sales in FY19 were Rs 300 crore on a turnover of Rs 500 crore.
Wonderchef's revenue is equally divided in the four zones- north, south, east and west, says Saxena. He adds that 70 per cent revenue comes from the urban areas and 30 per cent from rural areas. Outside India, the firm is present in the UK, the Middle East, Canada, Mauritius, the Maldives and Vietnam.