A refrigerator is an appliance that cools an area, generally food, beverages and vaccine storage. Arefrigerator (or fridge) can be powered by electricity, propane, gas. The refrigerator has been manufactured in India since the 1950s. The refrigerator holds only 16% of consumer durable market that is valued at around Rs.20000-25000 crore in India. The refrigerator price in India has the highest aspirational value of all consumer durables except for television.
The domestic penetration rate is considered to be 9%. The penetration rate in Urban areas is considerably higher which accounts for 75% of the demand, with rural areas constituting the other 25%. The demand is also higher in the northern and western parts of the country than in the east. The India Refrigerator market increased with a CAGR of 15.70% from 2010-2014 and is expected to grow more in upcoming years.
Various companies are competing against each other earlier when the refrigerator was a new preserving and cooling appliance the demand and the price of a refrigerator in India were a bit high but nowadays due to variations available in the market the prices have decreased. One out of 3 people buy a refrigerator, people in remote areas cannot afford this cooling appliance and some think that it is not that necessary appliance for a day to day life, that’s why the demand is high in urban areas as compared to the rural area.It is expected to grow in the upcoming years. Refrigerator constitutes the second largest product segment within the Indian consumer durable sector in India.
LG electronics is making technical advances and identifying business opportunities through various associative relationships with some of the world’s leading companies .special features to preserve nutrition with green ion door cooling refrigerators.
LG refrigerators have been rated 5 stars by Bureau of Energy Efficiency (BEE). Recently they have launched the first TV refrigerator in India. The Price range of LG refrigerator price in India varies between Rs.14450 to125000.LG is the leading brand in the refrigerator segment when compared to Samsung, Sony, whirlpool, etc. LG has introduced diversified products with superior quality as compared to others. LG has covered 29% of the total market whereas Samsung and Videocon 18%, whirlpool12%, and others 5 %.LG mainly focuses on upper and upper-middle classes and provides products for those consumers. A special team of LG analyzes the market in a detailed manner collects the prices of its competitors along with consumer thoughts through extensive research.
Every factor is been analyzed and after evaluating its costing and the market research the actual price is determined. When LG launches its product in India for the first time they were all high range but later company opened its manufacturing units; it has been able to lower the prices of the products.