Premiumization of Product and Service Portfolios
Meaningful premiumization can be achieved only by drawing out, painstakingly, what is inherently special in a brand.
By Swati Rathi
Godrej Appliances
In true Godrej tradition, every promise made to consumers was put forth after thorough research and independent lab testing at highly reliable labs in India.

The pandemic has left a mark on the world. A lot has been spoken about in terms of the increased health and hygiene consciousness, an even higher-order appreciation of convenience, and effort conservation. Simultaneously, there is another shift being witnessed across multiple categories – which stems from the economic impact and the purchase behaviour of consumers. The pandemic has had a different impact on different consumer segments – and the divide between the rich and the rest of India has widened further. A recent report based on a comparison between two rounds of large-scale consumer survey (ICE 360) validates the above.

Annual Household income 2021 vs 2016 @ 2011-12 prices

What this translates into – for sectors like appliances that depend on disposable incomes, there is a marked rise in premiumization. And hence, we have been witnessing a clear uptake across premium segments while the mass segments remain stagnant. Since premiumization also feeds into brand aspiration and the role of ‘status’ as a driver in durables purchased, it is important for all brands to continuously work on this vital shift. In almost every durable category there is a clear product segment of premium and mass, hence portfolio development is key.

Our Premiumization Efforts

At Godrej Appliances we have been working on this aspect across the value chain – from premium product offerings to premium channel development initiatives, from brand building to refining our service offering. When it comes to premium portfolios, keeping in mind our competitive strengths and opportunities, we have worked on a mix of levers like collaborative partnerships, in-house development, manufacturing as well as traded models. Over the last few years, our introductions have ranged from dishwashers to premium side-by-side refrigerators, benchmark-worthy top-load washing machines to smart Air Conditioners, and more.
At the technology level, we have kept the central theme of ‘health and hygiene’ which was also at top of the mind during and post pandemic.
Aligning with this theme, we were the first to launch AntiCovid GermShield technology in washing machines, Nano Disinfection technology which gives up to 95% surface disinfection in refrigerators, and more. In true Godrej tradition, every promise made to consumers was put forth after thorough research and independent lab testing at highly reliable labs in India. The patents applied by us bear testimony to the pioneering spirit.

Aesthetics and Technology

Aesthetics and Technology both play a huge role in premiumization. In recent years we have been heavily focused on aesthetics – with the fit-feel finish being a key cross-functional initiative. As a result, our recent introductions- glass door series in refrigerators – both frost-free (Eon Crystal series) and single door (Edge Jazz series), a new launch of Matt Black Eon Vibe Convertible series in frost-free refrigerators, new washing machines – both Top load (Eon Velvet series ) and Semi-Automatic (Edge Ultima series) or our in-house manufactured air conditioners – all have received appreciation for their improved aesthetics. The focus on aesthetics extends to all categories including Air Coolers and Deep Freezers as well.

Significant Investments

These introductions are an outcome of sizeable investments made in upgrading the manufacturing infrastructure.
We have invested in new lines for air conditioners with backward integration, tooling investments for glass doors, and new door shapes including curved glass, etc.
Further, there are parallel efforts in place to strengthen our testing facilities, which will ensure state-of-the-art offerings to consumers. Also, further investments are being made in existing and new segments which will feed into our premiumization efforts that will be unveiled over the next two years. To enable these developments, we have also been investing heavily in talent acquisition in areas like product design, and R&D as well as tying up with partners who can further our innovation journey.

Showcasing Premium Portfolio

On the other side of the value chain, the new portfolio enables us to strengthen display in the trade network. A multi-city trade roadshow was conducted in 2022 to showcase the range to key trade partners, with a special focus on opinion-making counters. Marketing efforts have been focused to support store displays as well.
Store-based advisors go a long way in driving secondaries and training them on the new products is a key ongoing initiative.
Our ongoing efforts in exclusive brand outlets (Godrej Inspire Hubs), Preferred Brand Stores, and Green AC Hubs also complement our premiumization efforts.

Omni Channel Journey

The other narrative that has gained prominence is the omnichannel journey of consumer purchase and the role of digital research on part of the consumer. The e-commerce investments have been upped significantly, year on year, to cater to changing consumer trends.
Our Digital partnerships have expanded in width and depth and our digital presence has been strengthened to speak to today’s consumer, more effectively.


To cater to these evolved consumers both in terms of their purchase and media habits, our service team has strengthened its offerings and is focusing on WhatsApp as a medium of choice to interact with customers. The service team is building new capabilities to serve new segments like dishwashers, side by side refrigerators as well as catering to online customers and ensuring their satisfaction.

Strengthening Alignment

To ensure cross functional alignment, additional processes have been created – in the form of direct visits to customers by senior management, multi-function visits to trade outlets, interactions with the last mile advisors, as well as an open approach to sharing customer and store observations for an overarching common goal of serving our customers, better. In summary, premiumization at Godrej Appliances is a sustained journey that demands continuous transformation across every process. Each process needs to be enriched by deeper consumer understanding and the complete participation of every employee concerned. Our ongoing commitment to process excellence will play, in the years to come, a critical role in determining our place in the market and in the lives of consumers.