Whirlpool in India
Whirlpool is currently amongst the top five leading washing brands1 in India but their washing machines in India differ significantly from the washing machines in US. This example of disparities in the types of washing machines found in the US vs. in India is meant to bring to light how cultural differences and laundry habits of people influenced a global company’s product portfolio and business practices.
When Whirlpool decided to pursue a global strategy and enter the Indian market in the early 1980’s, it decided to commence by manufacturing and selling washing machines. The company had to begin by understanding the knowledge, habits, motivations and abilities of the customers in India and how they differed from the laundry habits of people in the US2. For majority of the households in India, a maid washes the clothes on a regular basis, whereas in the US everybody does their own laundry2. Line drying clothes is the preferred way of drying clothes in India where as a heated dryer is a must for every household in the US. The type of clothing worn by the people in the two countries and the size and layout of houses also differ significantly.
A washer is not a must have for every family in India and only 17% of the Indian households were noted to have washing machine in 20142. In order to penetrate the Indian market in the early 1980’s, Whirlpool had to suitably price their washers so that it would appeal to the Indian masses. In the US, the price of a Whirlpool washer is approximately $500, whereas a Whirlpool washer in India is sold within a retail price range of $150-$2002,3. Market studies on Indian households had indicated that people often moved the washers around the house and therefore Whirlpool had to modify their traditional washing machine to add castors that would enable the families to do so with ease. The machines introduced in India were also more compact compared to the full –size machines in the US, to fit in the smaller house sizes in India3,4 . The company also introduced a delicate setting for their machines to accommodate washing of the five feet long “sari” that the traditional Indian women wear 2,3,4. Whirlpool further added colored washing machines to their product line in India to flatter the Indian consumer market4,5. With these adaptations along with many other strategic initiatives the company was able to gain significant market share in India. Whirlpool