Godrej & Boyce aims to generate 50% of revenues from Good & Green portfolio:Sumeet Bhojani
Established in the year 1897 in India, Godrej & Boyce’s story dates back to the Swadeshi movement or the original ‘Make in India’ movement. The company was founded by Ardeshir Godrej, a sequential inventor and innovator, who was joined by his younger brother Pirojsha Burjorji Godrej, with a focus on manufacturing. The three pillars of Godrej & Boyce are forging a greener India, innovation for good & green products, and assurance of employability. Its values include Trust, Integrity, Entrepreneurship, Customer Centricity, Environment Stewardship, Respect, and others
Godrej & Boyce has played an instrumental role in the economic history of India with its superior manufacturing and design, contributing sustainable value for the communities and its stakeholders. It has grown to be the Godrej Group’s flagship company, covering around 10 industries including consumer goods, complex engineering solutions, security, and furniture solutions, having a positive impact on the lives of one-third of the population of India each day. The company has more than 15,000 employees as a part of its workforce with a global presence across five continents.
In an exclusive interview with Adgully, Sumeet Bhojani, Head - Brand and Strategic Insights, Godrej & Boyce, delves into the current consumer trends in the industry, the evolution of consumer buying behaviour, the performance of Godrej & Boyce in 2023, the growth projections, expansion plans for 2024, the focus areas of the company in 2024 as well as its marketing/ media mix strategy, and much more.
Commenting on the current consumer trends in the industry and the evolution of buying behaviour in the same, Sumeet Bhojani said, “In our industry, we are witnessing multiple factors and trends that are shaping the consumer behaviour landscape in India. These are as follows:
With a noticeable shift toward sustainability and eco-consciousness, consumers are increasingly prioritizing products and companies that share their ideals of environmental responsibility.
Digitalization plays an important role in influencing consumer’s buying patterns. With the rise of digital media and e-commerce platforms, customers are engaging more in online research, comparison shopping, and making purchases more than ever before.
Furthermore, there is an added emphasis on health, safety, and hygiene. Recent global events have increased consumer awareness of health and wellness, driving up demand for products that promote sanitation, cleanliness, and overall well-being. Furthermore, personalization and customization remain major drivers of purchasing behavior. Consumers prefer personalized experiences, custom solutions, and goods that are tailored to their specific needs and tastes.
With a shift in consumer behaviour and buying patterns, we are witnessing notable growth in our premium offerings. Consumers are now willingly spending on higher-value products which led to an extension of our product portfolio as well in multiple categories like Appliances, Digital locks, and Furniture.
Overall, these consumer trends indicate a shift towards mindful consumption, digital involvement, health awareness, and tailored experiences. At Godrej & Boyce, we recognize these developments and continuously adapt our strategy, product offerings, and customer experiences to meet the evolving needs and expectations of today’s consumers.”
Godrej & Boyce – The growth story
Highlighting the performance of Godrej & Boyce in 2023 and the growth projections, and expansion plans for 2024, Bhojani said, “In 2023, Godrej & Boyce experienced noteworthy performance across various metrics, showcasing steady growth and resilience in a dynamic market environment. Our strategic initiatives, coupled with a focus on innovation and customer-centricity, contributed to achieving our targets and maintaining a competitive edge.”
He added that looking ahead to 2024, the company has set ambitious targets as a company. “We aim to enhance our presence in Tier 2 and 3 cities by bolstering our network and online visibility across our divisions. These cities are pivotal in fuelling the demand for premium products and services, fuelled by aspirational consumer trends and digital payment adoption. By fiscal year 2027, our objective is to expand our reach to over 400 towns to cater to the changing preferences of consumers.”
Sustainability has been ingrained in the fabric of Godrej & Boyce’s planning and operations for generations. Over the past decade, this ethos has been formalized into a corporate policy, encouraging our business units to introduce products that encourage sustainable consumer behaviour and promote circularity. Not only is sustainability beneficial for the environment, but it also fosters business growth.
Godrej & Boyce has set ambitious sustainability targets, including the goal of generating 50% of the company’s revenues from its Good & Green product portfolio.
“With a robust foundation and a forward-looking approach, we are confident in our ability to navigate challenges and capitalize on opportunities, positioning Godrej & Boyce for continued success and leadership in the industry,” Bhojani affirmed.
He further said, “Innovation is at the core of all our offerings. As consumer demands evolve, we strategically plan our business to stay ahead of the curve and align with current market trends. With products like leak-proof and smart ACs, Smart Fog machines for banking institutions, and advancements in the aerospace sector, we target to deliver cutting-edge solutions that meet the highest standards of efficiency and reliability.”
Elaborating on the focus areas of Godrej & Boyce in 2024, its marketing/ media mix strategy, and the medium in which it is investing more as well as its ad spends, Bhojani said, “Our marketing and media mix approach is dynamic, adapting to the changing consumer journey and market trends. While we have always invested in conventional mediums such as television and print, we are also paying an equal emphasis on digital media in response to the increasing digitalization of Eastern markets. Our advertising budget reflects this strategic shift, with a notable percentage dedicated to digital media to maximize reach and engagement. However, we maintain a balanced approach by utilizing conventional channels that continue to be beneficial. Our investment decisions are informed by ROI-driven strategies and data insights, which ensure that resources are used optimally across both digital and traditional channels.”
Emphasizing how Godrej & Boyce is leveraging digital media, technology as well as influencer and social media marketing, Bhojani shared, “At Godrej & Boyce, we have embraced digital media, innovative technology, influencer collaborations, and comprehensive social media marketing to increase brand visibility and successfully communicate with our target audience. Our strategy integrates data analytics from digital and social platforms to craft culturally relevant and personalized marketing for each brand within our group. By leveraging data, influencers, and interactive experiences, we engage with our consumers and increase brand affinity. Our strategy focuses on targeted web campaigns, utilizing CTV for premium audiences, and providing a seamless digital experience for our customers.”
On the road ahead, Bhojani said, “Looking ahead at 2024, we are confident about India’s sustained growth, fuelled by a growth driven by domestic consumption, a dynamic young workforce, and clear policies that encourage industrial and infrastructure development. This will aid us to advance our environmental goals while driving corporate success. We are confident in our capacity to significantly increase our sales over the next five years, with our strategic vision and unrelenting commitment to sustainability and innovation.”
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