How Finolex Cables is strategising to bag a major share of the home automation market

Electrical and telecommunications cable company Finolex Cables, established in 1958, is transforming from a wire and cable manufacturer to an electrical products company at a rapid pace, offering products such as water heaters, lighting, electrical conduits, switch gear, switches, fans, and others, catering to the requirements of modern households. In recent times, Finolex Cables has made a foray into the room heater segment and also expanded its fiber capacity from 2 million to 3.5 million km per year as well as its fiber-optical capacity to 10,000 km cable per month. It has launched its new product range – FinoGreen Eco-Safe, Halogen Free Wires.

The home automation market in India is expected to reach $25.64 billion in the year 2030 and the smart home market is expected to generate revenue of around $6.5 billion in 2024, an annual growth rate of nearly 9.14% between 2024 and 2028.

In conversation with Adgully, Amit Mathur, President of Sales & Marketing, Finolex Cables, delves into how the new smart switches and smart door locks of Finolex Cables contribute to the evolving landscape of home automation in India, the target market segment for Finolex Cables’ new products, and the way the company plans to reach and engage with this audience effectively. He also sheds a light on the pricing strategy adopted by Finolex Cables for its new smart switches and smart door locks, the feedback from consumers and the market regarding Finolex Cables’ new smart switches, smart door locks, the ‘No Stress. Finolex.’ campaign, and more.

How do Finolex Cables’ new smart switches and smart door locks contribute to the evolving landscape of home automation in India?

Home automation is rapidly evolving, fuelled by technological advancements, growing consumer awareness, and the increasing demand for convenience and efficiency in daily life. We are witnessing a surge in technological innovations – from smart lighting systems to voice-controlled assistants, to smart thermostats, the range is expanding rapidly. Additionally, advancements in connectivity technologies like Wi-Fi and Bluetooth are making it easier to integrate various devices into a cohesive smart home ecosystem.

As more Indian consumers become aware of the benefits of home automation, there is a corresponding increase in demand for smart home products. People are increasingly interested in solutions that offer energy savings, enhanced security, and convenience in managing household tasks.

We at Finolex Cables have introduced state-of-the-art smart door locks designed to enhance convenience and security to seamlessly integrate into the modern lifestyle of today’s consumers. The innovative smart door locks from Finolex redefine home security by incorporating a video door phone and offering multiple access options, such as face and fingerprint recognition, password entry, periodic/ one-time passwords, remote unlocking through a mobile app along with a regular mechanical key. To make the installation process seamless, the company provides free installation by company-managed technicians.

Finolex’s newly introduced Smart Switches allow homeowners to remotely access and control their home devices and systems from anywhere using a smartphone, tablet, or computer. Voice control and smart assistants help the Touch Switch offer voice control capabilities. The Switches also offer customization and personalization options, allowing homeowners to set up and configure their home devices and systems according to their preferences and lifestyles.

What is the target market segment for Finolex Cables’ new products, and how does the company plan to reach and engage with this audience effectively?

We cater to both B2B and B2C sectors, maintaining longstanding ties with the real estate industry spanning decades, primarily supplying wires, cables, and other product categories. Our strong rapport with builders has led to a positive response, as they incorporate our Smart Door Locks & Smart Switches into their smart solutions package for home buyers.

In the consumer market, we are targeting the SEC A segment that includes existing customers, as well as millennials and Gen Zs. We have been reaching out and engaging with this audience effectively through a comprehensive 360-degree campaign that spans multiple media channels, including TV, radio, digital, and innovative out-of-home (OOH) advertising that has helped make the campaign go viral. TV commercials released across General Entertainment Channels (GECs), news channels, regional channels, and prominent social media platforms like YouTube, Facebook, and Instagram have been delivering good results. These commercials are designed to resonate strongly with the target audience by focusing on the convenience, safety, and ease that Finolex products bring to consumers' lives, thereby establishing a robust brand presence and engaging a diverse audience.

Could you elaborate on the pricing strategy adopted by Finolex Cables for its new smart switches and smart door locks, and how does the company position these products in the competitive market landscape?

Our company constantly strives to implement a strategic pricing strategy for its smart switches and door locks, ensuring competitive rates while maintaining superior quality and advanced features. Smart door locks are priced between Rs 12,000 and Rs 50,000, prioritizing safety and compatibility with various door materials.

Our Smart switches, ranging from Rs 8,000 to Rs 12,000, offer innovative features, sleek looks and convenience. Positioned in the Fast-Moving Electrical Goods (FMEG) sector, we have a history of introducing acclaimed products like water heaters, fans, MCBs, Irons, LEDs, etc. Finolex Cables Ltd continues to innovate and expand its product portfolio to meet the evolving needs of modern households.

Could you share insights into the response and feedback from consumers and the market regarding Finolex Cables’ new smart switches, smart door locks, and the ‘No Stress? Finolex.’ campaign?

Feedback from consumers and the market has been overwhelmingly positive. Product offtake has increased as consumers appreciate the reliability, convenience, and advanced features offered by our smart products. The emphasis on safety and affordability has resonated well with the market, establishing Finolex as a trusted brand in the home security and automation segment. Furthermore, the ‘No Stress. Finolex.’ campaign has been praised for its effective messaging, engaging content, and wide-reaching visibility across multiple media channels.

What is the brand vision of Finolex Cables and its marketing strategy? Who is the TG of Finolex Cables and what are the marketing activities and campaigns launched by the company this year?

Finolex Cables centers on seamlessly integrating its products into contemporary lifestyles, providing not only functionality, but also a hassle-free experience. Our marketing strategy focuses on leveraging our brand pull, expanding our distribution network, and working to engage more consumers and communicate with them by investing in a 360-degree campaign. By associating with Kiara Advani and Kartik Aaryan, we at Finolex Cables have strengthened our connection with existing customers while also appealing to millennials and Gen Z. Additionally, our target audience comprises individuals seeking reliable and innovative electrical solutions for their homes. In line with this strategy, we launched the ‘No Stress. Finolex.’ campaign, which emphasizes on stress-free electrical solutions, alongside TV commercials showcasing product integration into modern lifestyles. These marketing activities aim to reinforce Finolex’s commitment to providing hassle-free experiences and resonate with their target audience’s needs and preferences.

How is Finolex Cables leveraging technology, AI, and digital media into their brand?

Finolex Cables is strategically leveraging technology, AI, and digital media to strengthen its brand presence and customer engagement. By integrating advanced features like remote access and biometric authentication into their products, such as smart switches and door locks, Finolex aligns with the rising trend of home automation and connectivity. Additionally, our company utilizes AI for data analysis, customer insights, and personalized marketing strategies, enabling us to understand consumer preferences better and tailor our offerings accordingly. Through a strong presence on digital media platforms like social media and online advertising, we tend to engage with customers directly, showcase our products, and share educational content, thereby expanding our market reach and enhancing customer experience in the digital age.

How was the year 2023 for Finolex Cables and what are the growth projections for 2024?

In 2023, Finolex Cables experienced significant growth and success across various fronts. The company witnessed a substantial increase in sales and market share, driven by the successful launch of innovative products and strategic marketing initiatives. We anticipate continued growth in sales and market penetration, fueled by the introduction of a new fan and water heater product range, expansion into new markets, especially rural penetration, and the strengthening of our brand presence through targeted marketing campaigns. With a focus on innovation, excellence, and customer-centricity, we are confident in our ability to achieve even greater success in the year ahead.

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