 Ladies and gentlemen, with a huge round of applause, please let's welcome our next speaker, Mr. Satish NS, President Haya India, to share his views on customer inspired innovation. Yeah, hi. Good afternoon. Sorry, I just, without introduction, I just walked in. I thought it was over, so I just walked into the next one. Well, you do not need any introduction. We all well know you. Can we have a round of applause for the gentleman one more time? Thank you. Okay. So it's come now. So when you say hire, probably we can look at the global brands which we represent. Today hire owns Aqua, which is a brand operating in the Southeast Asia. Fisher and Paykel, which is one of the most premium brand in operating in Australasia. A general electric in North American market and then candy in the European market. So these are the brands which are owned by higher India, higher global operation. So we've been, okay, like we said, we are global number one for the last 13 consecutive years in terms of the major appliances brand. It is purely the brand under the brand name hire. We don't include the GE or Fisher and Paykel or any other brands. So it's purely the thing. So when we say. Well, it's okay globally. Number one, 13 years of operation. But when we looked at India, when we started our operation, it's a huge challenge in terms of there's a established brands which were controlling almost about 65 to 70% of the market. And the trends were changing. And it was a very crowded market in terms of this. So how would you differentiate and enter yourself? What we had was two things, which we said inspired living was our core philosophy, which we had and other was probably I would say we had no other choice but to put a challenger brand aspect. Okay, so when I say challenger brand aspect, when you look at what's in for us in terms of you need to build something a strategic advantage in your product lineup, which your competition would not be able to copy it immediately or there must be some compulsion them for them not to shift to this segment. So that's the strategic advantage which we wanted to build looking at our thing probably some don't just have a life. Live feeling inspired. Take pleasure and simplicity. Be mindful and present in the moment. Don't think of it as checked boxes and to do. Think of it as finding joy in the Monday. Inspired living is about finding the space between the stresses, finding relief in the repetitive. Begin each moment anew, curate the life you want. Here is your cue. Surround yourself with things that make laughter easier, calm easier, rest easier. Feel more than just a week. Feel alive. Do more than just a day. Feel inspired. A technology so simple it lets you get lost in wonder and lets life grows at an effortless pace. Inspired living with hire. So when we said inspired living when we look at probably we look at every customer opportunity where the interaction with the consumer, how we can look at a product where we design or anything. So one such product when we look at it, most of us would be having a refrigerator at home. Just think back at home. You have a refrigerator. When we did a study on an average Indian household opens a refrigerator about 10 to 12 times. Out of that the freezer section is probably hardly about two to three times. And the rest of the time it's refrigerator. So just think back the fridge which you have in your home. Where is the refrigerator section? It's in the bottom. Refrigerator section is in the bottom. Your freezer is on the top. Now imagine the accessibility for a housewife in terms of food. Every time you'll have to bend to take it. Some Britishers made a refrigerator so everybody carried on the refrigerator. What we did is this. This is the refrigerator which was introduced in India. Bottom mounted refrigerator where the refrigerator section is on the top and the freezer section is on the bottom. So the accessibility of the food, everything, it's on your visibility. And clearly it's what we call as typically. So it's not only the designing of the product. It's how you communicate that product. Benefit to the consumer is what makes a difference. So we said let's look at this in a... So this is one of the communication mode which we used. So beating the traditional means of saying okay, this one. So challenge the status quo of the industry. So the next aspect is how would you take this? The next is probably this was in the mid-end of the customer. Now when we look at the high end of the customer, people who buy a side-by-side refrigerator, what we call as a two-door, I mean the refrigerator. When we did the study, Indian being probably most of the household is vegetarian. There was a complaint of saying that the freezer section in the side-by-side is too big for us. We don't use it. So they were shifting because it's too large, so they were shifting to a regular traditional refrigerator which is 400 liters, 500. So what we did was India's first side-by-side with a three-door, which is a convertible option which makes a 85% refrigerator space. Again, it's an option. If you want to, you can convert this into a freezer section. If you want, it can be converted into a refrigerator section. That's the innovation which we got. And this is what the communication and this was done made in India in our Pune plant. So this is one of the innovation which customer inspired innovation which we say. The next innovation was now most of your household when you're doing up your house or your kitchen. It's the trend is now little glossy, you want a little shiny finish which is there. Now when you look back your refrigerators which were available in the market, you are all plain normal floral pattern. You get this design, this one. Here's the list of, you can see the refrigerator's background. They are glass door refrigerators with different unique patterns which sets into the household. So this is one of the inside which we had. Now coming to moving from a refrigerator section to a AC. AC is one of the most what you say, we call it as a Idiot box which fix in the house. You only see that when you're fixing it. After that you don't see at all. You least bothered about what is happening in the AC. But when we did some research, an AC needs a maintenance about Six to eight months once because it's sucking the air inside And then it is giving. So the inside is the evaporator coil which we say gets dirty. So what happens is you're passing the air, the dirty air through That thing. So hence, of course, you're breathing. It's a dirty air. So to do this what you need to do. You need to call an engineer. When you call an engineer, okay. You need to one fix up a time. He comes. He cleans. Of course, there's a labor involved. And then there's a charges involved. What we said, why can't we solve this problem? This is where we introduced the AC called self-cleaning AC. This AC, at the ease of convenience of the customer, You just press off a button. The inside evaporator coil gets cleaned in 20 minutes. We were the first one to introduce this thing. The market. It's a difficult way to keep your lungs healthy. And this is the easy way. Inverter AC's dual clean technology. So this is again, it's not about creating a product. How do you communicate? If you have seen the ads, probably so far, which I showed the We never used any brand ambassador or anything. It was purely the product benefit communicated in a humorous way. That's what we challenge the status of corn. That's how we moved in terms of now the next one. Just imagine the washing machines which you have at your home. How many of you have a front load washing machine at home? Okay. Just imagine the noise which it makes. Okay. And the maintenance which is there for that washing machine. Why is it so? The traditional front load washing machine has a drum. And there's a motor. There's a pulley which is attached to it. So obviously it pulls and then there's a vibration. So more the movement, definitely the vibrations are high. The maintenance are high. And then this one. So what we said is a direct drive. We introduce a concept called direct drive where between the Drum and the drive, there is no contact. Literally we show the demonstration. We can put a piece of paper between the two and then show the technology working. It still works. Means it is connected through the magnetic waves. So hence the drive drives the drum. So hence this is there. So now this is about the direct drive technology which is there. So now the question is, it's a silent machine. So what better way to communicate to the consumer than this route between us? A clause. The roar of validation. Most work towards it. Work for it. But then there are some who only care about their craft. Their next record. A final checkmate. A higher peak. The kind that's big and leaves you stunned. The kind that transcends every boundary and shatters each ceiling. And yet what makes them truly stand out is going beyond anything anyone can ever dream of. Here's to those who don't just perform but perform big silently. So this is a route which we used where we never used the brand ambassadors. We picked up the athletes who have done wonders in their field who wanted recognition. In fact, the earlier series we used the Himadas, all these people. They were all, at that point, probably just coming up so they needed this kind of recognition. So this is what we used as a purely recognizing how a silent performant, our machine versus the people who are doing it. Okay. The next is when you think about... Sorry. I just jumped the slide. So it's not... Okay. When you think about a water heater at home, what strikes you? Generally, the feeling of this when you are shocked, right? That's the thing. Most of us have that feeling. So here's the technology which we introduced. We say 100% shock-proof technology. The moment if there's a single linkage of slightest of electricity, it shuts the voltage low. So hence, this is one of the best performing shock-proof techniques. This is what when I say is this has been our journey in terms of customer-inspired innovation. When we said, this is what we truly do in our organization, that we keep looking for these kind of pain points with the consumer buys a product to solve his certain problems. So we just pick up those problems in the most possible way, how we can use our global R&D. When I said the R&D, Fisher & Paykel, GAE, all these brands, how we can collaborate all this R&D and then get that problem solved. That's what we look at. Now, question is, how do we use our media? Okay, probably the event is about media. In our organization, there's a very clear road map which is there. We devised our investment into three parts. One is must do, good to do, and luxury. You will never find hire being sponsoring a rock show or this one. We still consider that as a luxury because that's not what we are. With a limited budget, see as we progress, all of you young or people who are in this one, there's one thing which will always be a constraint. I would say two. In hire, we say there's a language which is written is we have everything in the world except for two things. One is money, other one is time. We have the rest of the things available. So when both these constraints are there, how would you use this money? So it's very easy to get tempted when agencies or the channels come and bombard so many choices to you. You need to be clear. That's where we clearly define must do. If you have done all the must do activity, then you have a chance to look at must good to do. Luxury is the third stage. So slowly over a year, initial years, we invested only on the must do, must do, must do activity. Then slowly we are progressing to good to do. We pick up certain few good to do. So let me say this, how we have used the strategy over years to build this. If you have seen brand, we use only the high impact properties. In the channel buying, we never buy RODP. We only buy a timing which we need high impactful properties. You will find us in all the impactful properties. In all the big bosses which have a presence of 100, 120, that's where we build the brand. Second is cricket. India leaves on cricket. So we'll be sponsored. Not this one. We took the ground activation, which is there in most of the series which we took it. So this is how we took our investment into the must do activities, and then that's how we progressed the brand. Next is, you will never find a higher hat being less than a full paid or a half patch. Never. See, the philosophy which we adapted was, never be a me to player. Either do it in style or don't do it. You just put, if everybody is putting an ad, you put one half paid ad just for the presence. You are happy. Your sales team is happy. Your dealer sees, but the end of the day, the consumer is there who is seeing a similar ad of competing brands. In the same paper, the moment he sees a full page, a well created artwork of a competition versus your half paid or a quarter paid ad, which is not well crafted, your brand is gone. So either don't be present. If you have limited money, don't do it. Reserve that money. Do something else just for the sake of being me to. Don't do it. This is the philosophy which we adapted, and that's how you will find all the innovations which are happening. Whether it's in of the papers which you saw, these are the things which we did. In terms of digitization, of course, we still call ourselves as a digitally illiterate. We are a progressive company. We learned a lot over this one. Now, again, we started building our platform and digital strategy was, first was own customer. Protect your own customer. Then we started adding the in-market customer. Now we have started building the affinity and the further channel in terms of awareness campaign. So because, again, your money, if you're in a marketing, please do understand it's not just a building a brand. Your number also has to happen. See, fortunately, unfortunately, I was handling both sales and marketing. Obviously, the sales guy will say, boss, sales to Hwani. You need to balance both between the things. That's how we said, okay, in-market, and then now we are Getting into awareness building. Now, the last point was engaging the customer. You have built a wonderful product. You have a wonderful media campaign, everything. But end of the day, where does the customer go? Yes, of course, today, the online contributes about 98% of our industry, while the offline still has about 92. So where does the customer go? He goes to offline. So what do you do? Give him a great experience at the shop floor, okay? And engage the customer at the shop floor. Put your best of the promoters with the product where Don't sell the technology. Customer doesn't understand the technology. Give him the benefit what he's going to get when he Buys this product. So we have about 5,000 people who are in stores Across india. We train them to ensure the communication goes to the Customer. The way we intend to design. When I say direct drive, what is the benefit? When we say water-mounted refrigerator, how it has to Go down. So that's the way of communication. And these are the few glimpses of shop floor. When you walk in, again, it's the question of how Well you present. So we say, what does it look like? Now the new terminology which we are adding. That's how the sales happens in this. Now coming to, this is one probably my biggest learning Of this industry, as I can say. Most of the companies or most of the brands end up doing Billions of crores of rupees on acquiring a new customer. We spend huge money on acquiring a new customer. But we do very little for acquiring a, what is that we Are doing for a existing customer. I do not, my experience, I've been only a durable guy. I've sold only the television from a black and white Television to QLED I've sold. So that's how my journey has happened. I don't know what happens in the other industry. But I can say in our industry, please just pause a Minute and think, if you're buying a product, if You bought any product recently, have you bought it On your own? Or what research have you done before buying a product? You would have asked one of the existing customer before Buying it. Okay? So they talk to, the new customer talks to the existing Customer. So what do we do to engage this customer is we ensure The best of the services given to the customer and Engaging the customer. It's like most of our premium products which the consumer Buys, we do engage with those customers by, like for Example, a refrigerator. How to arrange your refrigerator? We do have videos being made and sent to these customers So that, you know, you're always engaged and that Customer should feel for the premium customers who are Buying our engineer, service engineer visits, those Houses. Even if it is after the warranty period, if the Selfs are broken, we do replace free to them. What are we doing? We are taking care of the customer. Probably by replacing that self, we are building a Brand ambassador in them what they need to. So that's the thing. Now, this is another learning which I would say Experience is deterrent. Now, today there's no meaning of taking somebody Into the industry. The Salka experience will engage him. Absolutely. We don't believe in that now. Reason. What is experience? We did certain thing at a certain moment. There was a certain competition. There was a certain customer. Five years back, the competition was different. The customer need was different. The way he was engaging was completely different. Now, today, if in the situation, if you are the person Who is managing the business, uses the same experience, or He puts the same stimulus for this situation, where the Customer need has changed, the competition has changed, do Expect the same result to come. It will not. We have seen in our industry more and more that Experience is a deterrent. There is a lot of clogging which happens. No, no. I did this. I know it will work. I know this happens. I know this will happen. You are always bound by that, your past experience. There's always a need to apply a latest theory which works. Probably, if all of you are a little interested, you can Go to Clay Christensen, theory of disruption. Please go through that. It has a video of 15 minutes, one hour, so anything. He explains this theory of disruption, how new players can Come and challenge the existing players. So this is what we believe. And this is what we try to practice in our company. So as I said, customer need has changed and everything. So what's a way forward for us? So it's about everything. Now 5G connected devices and everything is what is going to Happen. People are going to talk probably more. We don't know what's going to happen to the durable industry Because more and more the 5G, your speed, the way the Devices will start talking to each other. Probably what we see is this. Alexa, turn on the lights. So this is what we see. So we have built a smart home in deli, which is all connected Devices. So that's what we are exploring and experiencing that. So as I said, future is about just a word. What you want it to be done, probably the devices will do. That's a way forward for us. Thank you, ladies and gentlemen. I think probably my last piece of advice, keep this in mind, experience is a deterrent. Don't go by that. Okay. Thank you. And ladies and gentlemen, it might be a surprise. Exactly. Perfect. Thank you so very much. Thank you. Thank you.