There is a paradigm shift towards affordable modular switches: Panasonic Life Solutions India
- February 25, 2022
Panasonic Life Solutions India took a significant step in August 2020 with the launch of ZIVA – the affordable modular wiring devices range. ZIVA has been strategically placed so as to provide a cost-effective option for those aspiring to move from non-modular to modular switches. In this exclusive interaction, we have Rajesh Nandwani, Business Unit Head of Wiring Devices, Panasonic Life Solutions India and Sunil Narula, Senior Vice President- Sales & Marketing, Panasonic Life Solutions India, discussing the ZIVA story in detail – right from its launch to how it has captured the imagination of buyers in a short span of just about 18 months. Nandwani and Narula concur that the biggest market for ZIVA is India’s aspirational young population. An interview by Venugopal Pillai.
As we recall, the launch of ZIVA was in around September 2020 when the country was still reeling under the pandemic effect. Were there any apprehensions about the timing of the launch?
The ZIVA range of affordable modular switches was launched in the Indian market in August 2020. During that time the COVID19 pandemic was widespread and taking into account the government protocols, we had launched the range through a virtual platform. The unforeseen and immediate crisis brought many businesses to a halt and slowed down the market pace. However, the market demand for an entry-level range of modular switches remained on the upswing. Further, demand for affordable housing in 2020 in the rural market also had an upward movement and therefore, we were confident that the growth journey will resume and there will be a speedy recovery of the markets across the country.
ZIVA, we presume, is now the entry-level modular range of wiring devices, a position earlier occupied by Penta Modular. In rough percentage terms, what would be the difference in the pricing of the two ranges?
The ZIVA switch range is a breakthrough in the category of customers who are looking for a well-designed and attractive solution at affordable rates. The introduction of this range establishes the stronghold that the brand in the segment. The ZIVA range is priced aggressively, with an MRP in the range of Rs.30 per switch, whereas Penta Modular’s switch is in the range of Rs.39 per switch. ZIVA has been introduced at an affordable price point and has been positioned as an entry-level modular range placed between the Penta non-modular and Penta modular products.
Which class of consumers are you primarily targeting through the ZIVA range?
ZIVA range is targeting a new set of consumers – the aspiring young population. The company has positioned its ZIVA range as an ‘Affordable Upgrade’ from the non-modular to modular switches to cater to the entry-level modular switches market. The ZIVA range has been designed to support the “Pradhan Mantri Awas Yojana” initiative of the government. Through the ZIVA range, our focus is to target customers who are looking for quality and best-in-class products that offer safety and affordability. The aim is to meet the requirements of all the entry-level and economy modular segment consumers by prioritizing product quality at affordable price points.
“ZIVA is perceived as a trustworthy and reliable brand that is now the preferred substitute against the local and regional players at this entry-level price point.”
How has ZIVA performed so far, in terms of revenue and geographical reach? Are you generally satisfied with the results?
So far, we have launched ZIVA phase-wise across all major states in India. We are proud to announce that ZIVA has become the fastest-growing switch brand in the industry in 2020-2021 to achieve sales of more than Rs.1,000 million since the launch date. We have received positive feedback from the market as customers, retailers, and dealers have appreciated the product and there has been an increased demand for the range.
ZIVA is perceived as a trustworthy and reliable brand that is now the preferred substitute against the local and regional players at this entry-level price point. Through ZIVA in the coming two years, the company is looking to reach Rs.2,000-million revenue by the next financial year.
We observe that ZIVA has not yet entered the western market — Mumbai city in particular. When do you plan to hit this important market?
In fact, we have already launched ZIVA across all major cities including Mumbai and we are excited about the response we have received from this market as well.
What are some of the unique features of ZIVA, which are not normally seen in modular wiring devices at that price point? For instance, we recall that ZIVA has a “vertical” 4M modular plate.
ZIVA comes with a wide range of features with a unique blend of advanced technology, maximum functionality, and exquisite design. ZIVA has vertical plate mounting in all frames the sizes of 1 Module to 18 Modules. The product is sleek in design, tested with a 1 lakh operation, IP20 protection, captive screws, etc.
What is your view on the general shift towards modular switches? Will non-modular switches continue to have a market in the foreseeable future?
Due to the increase in disposable income and rising standard of living, consumers are now willing to invest more in renovating their homes to resonate with their personal style statement. With the new normal, many customers are ready to spend a good percentage of their budget on home interiors and, hence we are seeing a paradigm shift in customers upgrading from non-modular to more affordable modular switches. As rural India still counts for more than 50% of India’s population, the demand of non-modular switches will be there in market for a good 10-15 years.
Please discuss how ZIVA completes Panasonic’s wide range of modular switches comprising Penta Modular, ROMA, Woods, Rider, Europa, Vision, etc.
We have developed solutions keeping in mind the customer’s needs and requirements right from the luxury to non-modular/accessories segments. Earlier, only a few local and regional players were present in the entry level modular segment, however, Panasonic Life Solutions India aims to cater to the market at every price point therefore ZIVA was introduced to fill in the gap and maintain the market leadership position.
“The launch of ZIVA is a significant milestone in our quest towards building a complete product portfolio.”
Is there a dedicated market for each of the above? Do you foresee consolidating the range through withdrawal of some brands? Alternatively, is there scope for introducing a new model, especially in the premium segment?
Yes, there are defined market segments like luxury, premium, mid, economy, non-modular, and we have been offering products for each of those segments. With having so many brands in our basket, there exists scope for consolidation which can be done based on the market requirement. In the premium segment. we have added the EUROPA range and we are working on developing innovative IoT and AI enabled solutions to address the modern technology requirements of the consumers as well.
Please discuss how Panasonic Life Solutions would be improving the reach and visibility of ZIVA, in the medium term? What would you consider as your major markets – metropolitan cities, tier-1,2,3, cities, etc.?
The launch of ZIVA is a significant milestone in our quest towards building a complete product portfolio. Our target with this range will be to focus on enhanced extraction from the Tiers 3, 4, and 5 markets by further expanding our presence and market shares in the smaller and uncharted territories. Target metropolitans like Delhi and Mumbai cover areas which have a Tier 3 and 4 composition where ZIVA has received a positive response. There is a growing demand for ZIVA across all segments including Tier-3 and Tier-4 cities, and our goal is to address the needs of all entry-level and modular segment consumers with a commitment to making the finest quality products at affordable rates.
