The Billion Dollar 💸 Fan Company That Loses Money With Every Sale?

I rarely find myself liking a brand in today's market on a personal level. They often prioritize short-term profits over long-term innovation.

That’s true.

But through this newsletter, I talk about brands biweekly on how they are changing the market with their innovative mind.

Hello Profiteers,

The Indian fan market is worth 10,500 cr. and Atomberg is ticking all the boxes to generate a revenue of 1000 crores in 2024.

Atomberg differentiates from the standard brands in India catering to the fan category like Crompton, Havells, Usha, and more by offering a different - energy-efficient fan option to our price-sensitive Indian market.

Indians are indeed VERY price-sensitive, but some brands like Atomberg pushes that limit, and users take that up very well just because of how good the products are.

The Brand

Every brand has a hook line that they use when pitching themselves.

And for Atomberg - they say, “SAVE Rs. 2,000 on every fan you buy in a year.” This resonates deeply with the price-conscious Indian market. But how can they offer such significant savings? Here's where the story gets interesting.

High Investment, High Growth (for Now)

A company that now commands a 10% share in the fan market, Atomberg, was established in 2012 and began operations in 2015. The founders, Manoj Meena and Sibabrata Das (IIT Bombay alumni), aimed to disrupt a category dominated by century-old brands.

While electronic products like refrigerators, washing machines, and microwaves had seen significant advancements, the humble ceiling fan remained largely unchanged. Traditional motors consumed a whopping 70 watts of energy while providing only 20 watts of output. Meena and Das knew this needed to change.

Innovation at a Cost

They developed a revolutionary "smart motor" - the heart of their fans. This innovation transformed these simple appliances into energy-efficient and smart technology-powered devices.

However, this focus on cutting-edge technology comes at a price. While their revenue is skyrocketing (as you'll see in the attached graph), Atomberg is still in the investment phase.

They're heavily reinvesting profits into research and development, marketing, and brand building to capture a larger market share. This aggressive strategy prioritizes long-term growth over short-term profits, leading to their current losses.

What can you learn from the brand?

But what is the need to learn from a loss-making company?

Coming up with an innovative product or service is something every entrepreneur is doing right now. But what separates a good idea from a billion-dollar brand? The answer lies in strategic execution, and Atomberg is a masterclass in that department. Here's why their losses shouldn't overshadow their immense potential:

Beyond Engineering

While Manoj Meena and Sibabrata Das hail from an engineering background, their marketing prowess is undeniable. They understood the importance of a strategic rollout.

Phase 1 - Building Trust with B2B Penetration

Atomberg didn't dive headfirst into the consumer market. Instead, they cleverly targeted the B2B segment first. By securing partnerships with giants like Tata Group and Infosys, they established brand credibility and gained valuable insights.

Phase 2 - Omnichannel Domination

With a solid B2B foundation, Atomberg launched a full-scale omnichannel assault. Their fans became readily available on major e-commerce platforms and in brick-and-mortar stores, maximizing reach and accessibility.

Phase 3 - The Secret Weapon

Atomberg aced another crucial strategy: first-party data collection. Their user-friendly registration system incentivizes customers with an extra warranty year in exchange for data. This goldmine of information allows them to personalize marketing efforts, significantly enhancing customer experience and brand loyalty.

The Revenue Graph: A Story Waiting to be Told

Atomberg's revenue trajectory is nothing short of phenomenal. Their innovative approach to brand building, coupled with strategic marketing, positions them perfectly to achieve their ambitious target of ₹1,000 crore in 2024.

Atomberg's story is a testament to the power of calculated risk-taking. By prioritizing long-term growth over short-term profits, they've laid the groundwork for a dominant market position. Their journey is far from over, and it will be fascinating to see how they leverage their innovative technology and data-driven marketing to solidify their place as a leader in the Indian fan market.

But wait, who are we? And how are we helpful?

Dyrect is an industry leader in the world of warranty infrastructure. We understand what it takes for a brand to make a niche for itself, which is why we create our biweekly newsletters packed with strategies, executions, and results of existing brands to help YOUR BRAND reach the heights of growth that you once dreamed of.

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Abhishek Agrawal

Founder, Dyrect