D2c Insider Pulse | Voice of the D2C Community in India

Crompton Bets Big on Tier II & III India, Targets ₹15,000 Cr Turnover with Omnichannel D2C Push

Crompton, with 85 years in the business, is now targeting Tier II and Tier III markets. It’s working to build a stronger, modern shopping experience for customers in India, both online and in stores. Known for its reliable fans and pumps, Crompton is now a well-known brand for electrical and home appliances in India. It’s the world’s biggest ceiling fan company, a long-time leader in residential pumps, a top online seller of water heaters, and the biggest name in mixer grinders. The company holds about 10% of the market in these areas. Over time, Crompton has moved into water heaters, air coolers, kitchen appliances, and new areas like solar pumps and rooftop solutions, growing its potential market.

A major step for Crompton was buying Butterfly, which improved its kitchen appliance selection and boosted its mixer grinder sales. This fits with the trend of big companies using purchases to strengthen their hold on certain product categories and increase online sales. Today, Crompton wants to not just sell products, but provide solutions for daily household needs through good design, energy efficiency, and lasting value.

This change, called “Crompton 2.0” internally, means the company is focusing more on being relevant, quick, and understanding what consumers want. Crompton is paying attention to changing lifestyles, the desire for higher-end products, and the need for convenience. Research and development investments are driving new products, with a focus on premium and high-performing items.

Crompton’s plan to sell both online and in stores is key to its growth. It has a strong network of over 6,000 distributors and almost 300,000 stores in both cities and rural areas, providing a reach that many online-only businesses can’t match. At the same time, its online sales, including e-commerce platforms and its own website, have grown fast. While physical stores still bring in about 80–85% of revenue, Crompton’s online business has reached ₹1,000 crore and is growing by more than 20% each year.

Notably, there’s a rising demand from smaller cities and towns. Consumers in Tier II and III areas are buying more premium fans, lighting, chimneys, and specialized mixer grinders, getting closer to the buying habits of those in big cities. Better access, growing desires, and exposure to organized retail have made these areas a major source of growth, influencing Crompton’s plans for expansion.

Looking ahead, Crompton plans to reach more underserved areas, improve its presence in stores, and adjust its sales approach to fit local needs. Product improvements are still a top priority, with recent releases like the Sylvaire and AQNova chimney series showing changing cooking habits and the rise of modern kitchens.

In the next four years, Crompton wants to grow its potential market from ₹80,000 crore to ₹2,00,000 crore and reach a turnover of ₹15,000 crore. As the online shopping scene in India changes, Crompton’s story shows how long-standing brands can adapt, combining trust, size, and modern ways of building a brand to stay competitive in a fast-moving market.

Leave a Reply

Your email address will not be published. Required fields are marked *