Fanning Business The Right Way
Fan manufacturers are going out of the way to lure dealers with incentives, freebies and support for setting up exclusive displays

Fan retailing has emerged as one of the fastest money making enterprises within the building products industry. And reasons for this development are rather simple. Firstly, fans are among the most rapidly moving consumer durable goods in the market. Secondly, they are no longer an essential item, but a designer product now, and are quickly replacing older models. Finally, manufacturers are pumping in more money than ever before to promote their products, and provoking customers to buy, with fancier models. All these factors make the fan business pretty lucrative, and even merits setting up of exclusive display spaces by the sellers.

Dealers admit that for the fans’ business to be effective, proper display is important, which means ample display space. And sellers who set up smart showrooms that showcase a large variety do better business than outlets that simply place packaged products on their shelves. According to them, “Customers want to examine a fan closely, and even request to see its working. Looks matter, but they want to be assured of its quality too. And if satisfied on both counts, they would even be willing to invest in a more expensive model.” The message is simple: when display is compelling it attracts more customers, who pay better prices.

Smart fan sellers who understand this simple business concept are establishing showroom type displays where consumers can see a more comprehensive range in different styles, sizes, colours and materials. Since fan ranges of most companies have expanded hugely over the past few years, from basic to premium and super premium models, and even include exhaust, TWP (table, wall, pedestal), personal and tower fans, it is near impossible for dealers to convince customers simply on the strength of a catalogue or brochure. Besides, with so many options available for each model, dealers would be grossly undermining their own business if they do not display properly, and to the largest extent possible.

A market study reveals that customer preferences differ with the demography. For instance, in metros and larger cities, there is a marked preference for branded fans, while in smaller towns, buyers usually go by the dealer’s recommendations. Little wonder then that small fan companies have a strong hold in regional markets where their relationship with the dealer network is stronger. Sanjeev Gupta (akshay_newsapna@yahoo.com) of Sapna Fans, one of Usha International’s best performing distributors, and based in Ghaziabad, asserts that the success of a brand depends a lot on the loyalty of the dealer. “We have been very successful in marketing Usha products even in small towns of Uttar Pradesh because our dealers are very committed, and they will confidently sell a premium product even though cheaper options are available in abundance.” Gupta does admit that small brands have their own place in the market, and cannot be ignored. “However, a lot depends on how the dealer influences the buyers’ choice.”

Typically, a comprehensive fan business would offer customers a variety of ceiling and TWP fans, personal fans and exhaust fans. In the ceiling fans category, besides the economy and deluxe varieties, demand is growing fast for premium fans that fall in the price range of Rs 1,500 to Rs 3,500. For the more adventurous, there are the super premium varieties that function as low speed air circulators in air-conditioned environments, and are designed as objets d’art for interiors, with prices starting at Rs 9,000. Selling them requires a different set of skills, as their buyers are mainly high income earners and the hospitality industry. Though some mainline fan companies have added such fans to their range in a very small way, it is the specialist importers who are offering a large collection and inventory, and are reaching out to dealers willing to take up the challenge of handling a super premium product.

Explains Rohit Puri (rohit@puriz.com), CEO of InnerSpace and importer of super premium fans, “These fans are especially designed, and hence, cannot be compared with general purpose fans. They come with blades made of natural wood, woven bamboo, palm leaf, aluminium, brass or acrylic, and rotate noiselessly with zero vibration.” He informs that these fans are being sourced mainly from Italy, China and USA. They are high on design and technology, and duplicating them in India is not possible. His company offers limited warranty on the fans, and also provides assistance in installing them.
Personal fans are emerging as fast movers, and are finding especial favour with people who spend a lot of time in front of a computer, as their small compact size is particularly suitable for placing on desks. As for the TWP category, most companies are now offering versions with remote control and timer features, which help to extend the range and offer more choice to buyers.

The exhaust fan has, interestingly, also transformed from a plain, functional product to a smart interior item. The common metal winged and noisy version is giving way to the sleek plastic-bodied unit that is not only silent but also merges seamlessly with the surface on which it is installed. While most fan companies offer the basic square-shaped 150mm and 200mm type, exhaust fan and kitchen appliance specialist Cata Appliances Ltd has introduced a marvellous collection priced between Rs1,490 to Rs5,600.This might appear steep for an exhaust fan, but with specific versions available for bathrooms, kitchens and other areas, it is not difficult to impress buyers about their usefulness. In fact, their small size and silent operation easily convince buyers about their worth.

Explains Dheeraj Dhar (dheeraj@cataindia.com), national head for the company’s fan division, “These small wonders not only complement the taste of the users, but also come with turbo-charged suction power (150) that can free the interior air of gasses, dust or minute pollutant particles within minutes. Our fans consume only 15W to 25W of power, while giving an output of around 2,500rpm, compared to other exhaustfans which deliver only 1,250rpm and consume at least 30-35W. Our fans can easily be installed on hard surfaces like glass, as well as at the end of ducts up to 15ft long.” With such a vast range of products, it is not difficult to imagine a display area starting at 200sft and extending to 2,500sft. While companies are liberal in supplying dummy fans, to satisfy the curiosity of customers, showing fans in operational mode is a must. It is also important to install ambient and task lighting that highlight the products’ features, and to create an environment in which customers can relax and view the displays at leisure. Having window displays that show the latest fan designs and colours in interesting settings will also attract people.

Of course, with a showroom it becomes possible to expand into products that the customer is poised to buy while selecting fans. Segments that go well with the fan business include appliances (geysers, heaters, blowers, convectors), lighting (with a focus on outdoor and garden), wiring accessories (modular & electronic switches, video door phone systems) and modular kitchen cabinets and appliances (chimneys, hobs, ovens). All these segments are witnessing brisk business as consumers are increasingly renovating homes and landscapes, while no new construction gets completed without these products, whatever time of the year it may be.

In a market overcrowded with every conceivable type, brand and make, companies are vying to be present in highly visible retail outlets such as HomeTown and Croma, who have dedicated large space for fans. They are also rooting for dealers who accord their products lavish displays, especially those who set up exclusive fan studios. Havells and Khaitan are incessantly expanding their chain of branded outlets (Galaxy and Fantasy respectively); and Usha too is adding on to its 50-strong chain of owned showrooms. Dealers committed to the brands they sell are also pampered. Bajaj, for instance, is offering its best dealers membership to the exclusive Privilege Club.