Kenstar launches air conditioners in tie-up with Amazon

Taking the online route to launch new products is the 'in' thing now, and it's not just restricted to mobile phone manufacturers.

Consumer durables maker Kenstar has forayed into the air conditioner category by launching four models in split AC category of 1 to 1.5 ton capacity that would be sold through e-commerce major, Amazon.in .

By the end of 2015, the company is eyeing five per cent market share (200,000 units) of the overall AC market is India that is expected to reach 4.0 million units in 2015 (it was 3.3 million units in 2014).

Priced between Rs 20,990 and Rs 25,990, the focus markets for Kenstar AC are the top 20 cities that contribute 72 per cent to the overall AC market in India.

The new Kenstar AC range offers four models in split AC category. All ACs are compliant with BEE star ratings and fall between 3 to 5 star ratings.

Rahul Sethi, President, Kenstar, said, Kenstar did not go through the brick-and-mortar trade but chose Amazon because its TG is the urban couple who shops online, and that Amazon has a global presence.

"We find it to be the right time to foray into this category, and are proud to launch Kenstar's AC range. We already have 22 per cent to 24 per cent market share in the air cooler segment," he said.

The market is primarily dominated by split ACs, which contribute around 85 per cent in value to the overall AC sales. And Kenstar has launched only split AC models. On the timing of the launch, Sethi said it's around the winters when customers start scouting for brands and better deals. "It's already started selling on Amazon," he added.

Amazon launched the AC category in October last year, during Diwali season. Samir Kumar, Director Category Management, Amazon India, said Amazon is launching a new category every 13 to 14 days across sectors.

Amazon also sells ACs from other brands, while the Kenstar AC is just an exclusive tie-up with Amazon.

"We offer 19,000 pincodes. And people from Arunachal Pradesh and Nagaland are, too, buying online, for instance. Thus, an access to selection is very important. Price selection and convenience is paramount in this [AC] category for the customer," says an optimistic Kumar who is waiting for the season to start.