--By Suraksha Adhikari 

 

Kathmandu is under the chilly spell of Northern winds and people have started shopping for appliances to keep warm. Demand for heaters in local market has gone up significantly and traders in the niche are glad. With winter setting in early this year, it has led to greater trade than last year during the same period. An early surge in heater sales has flamed corresponding expectations of higher profit this season. 

 

Market status

Market of winter-comforting materials like heater, blankets is always relational to the wintry spell. Since the spell started earlier this time, till February traders are expecting substantial trade of these products. Most of Nepali consumers rely on Chinese winter-warming products. Chinese products dominating Nepali market due to their affordable prices. However, internationally renowned home appliance brands like the Black & Decker, Yasuda, Electron, et cetera, are also competing in the niche. These brands have introduced a series of electric and non-electric heaters in the Nepali market. 

 

Bhaskar Munankarmi, Assistant Manager at Him Electronics, authorized dealer of Samsung in Nepal, said that most heaters in Nepali market are Chinese and that consumers prefer them primarily for the affordable prices. “We have been selling both Halogen and gas heaters of Smsungamong which the demand of gas heater is more due to expected long hours of power outage,” Munankarmi added.

 

“The sale of the heaters is expected to increase by 30 per cent than that of previous year till the peak of winter season,” he said that adding that “The prices of the heaters have also increased by 20 per cent than that of previous years due to rise in the price of foreign exchange.” 

 

Heaters in Nepali Market

In Nepal, halogen, quartz, fan, kerosene and LPG heaters are widely preferred. Halogen, quartz and fan heaters are basically variants of electric heating devices. Halogen heaters are available in two- and three-rod types. Price of Chinese two-rod halogen heaters starts from Rs 1765, while the three-rod variant starts at around Rs 2200.

 

Traders say that the demand of gas heater is increasing in the market as compared to the halogen and kerosene heaters. “As it can be operated even during load shedding hours and can heat up a room more effectively in short time, gas heaters are more popular,” said Ishwor Dangol, proprietor of Asan based Ishwor Store. “It is now displacing the traditional electric heater and kerosene heater,” he added. 

 

The market offers gas heaters with three burners. Once heated, the burner, made up of ceramic clay and lime, releases heat for a long time.

 

A single heating burner with a capacity of 1.4 kilowatt can release up to 4,000 watts of heat at its full efficiency level. Dangol said a gas heater can heat a room with an area of 20-80 sqm, provided all the three burners are lighted. “The infrared and fast heating systems fitted in the heater warms the room in a short time, thereby using less  energy,” said Dangol.

 

Bikash Maharjan of Ganapati Store in Mahabauddha said a cylinder of LPG can fuel a gas heater for 90 to 100 hours with all the three burners lighted.

 

Apart from the normal gas heater, the market also offers hybrid ones that use both LPG and electricity. Electric segment of the hybrid heater comes with three halogen rods or heating fan. “The demand for the hybrid heater is also on the rise as it allows people to use the electric heater also,” said Maharjan.

 

“A normal gas heater costs between Rs 5,500 and Rs 6,000, while the hybrid one is available for Rs 7,500 and above. A one-year warranty is also offered in the products,” he added. 

 

 

International Brands in Nepali Market 

Internationally acclaimed home appliance brands like Black & Decker, Yasuda, and Electron, among others, are competing in Nepal heater segment market. Though Chinese heaters are widely preferred by the Nepali customers, dealers of these international brands are hopeful of a fair share of the market for their products.

 

Anil Sethia, Managing Director of Universal Trading Centre (UTC), a subsidiary of Lucky Group, the authorised distributor of Black & Decker, says, “We brought in electric heaters five years ago and currently we are the leaders when it comes to branded heaters, as the rest of the market is dominated by Chinese products.” While determining actual market share of their product remains difficult, he informed that they sell around 1,000 units a year.

 

Meanwhile, Electron Appliances — an Australian brand established over 20 years ago — has been competing in the Nepali market since a decade. Amit Taparia, Manager at Electron International Private Limited, a professional household appliance company marketing the brand’s appliances in Nepal, says, “We have heaters in quartz, halogen, fan and gas models in the two- and three-rod segment. Capacities of our models vary from 600 to 1,200 watts. We also have a two-in-one gas cum electric heater.”

 

According to him, consumers are shifting away from traditional quartz to halogen and fan variants, though the latter are mainly used for office purposes. “The sales of LPG heaters is also catching up with electric variants, as they can be used during power cut hours. This is the reason we occupy 20 per cent of the market share among branded heaters,” says Taparia, though he argues that disclosure of price is difficult and may vary from one retailer to other.

 

With Chinese products dominating the market, dealers in branded ones are reluctant to disclose the price and sales growth. However, they uniformly agree that the market is growing.  

 

Anil Goenka, Operation Manager of Triveni Byapar Company Limited, authorised distributor of Yasuda, says, “Yasuda, an affordable brand introduced in Nepal just three years ago, is witnessing an average growth of 30 per cent every year. Targeting the middle class segment, we provide six models of halogen heaters. Five of our models belong to three-rod segment while one has two rods.” Like Taparia, Goyenka also finds it difficult to reveal prices and annual sales of company products. He claimed that the brand enjoys 15 per cent of the market share among branded heaters. Goenka adds, “Remote control feature and smooth rotation adds to the good looks that our products flaunt, making us the preferred choice among prospective buyers.” 

 

Prospects of the Market

Traders opine that the market of heater in Nepal is flourishing. Especially in Kathmandu where the climate tempts people to buy heater to avoid chilling winter cold. As a warm home in winter makes everything better, heater-traders expected equally heated sales.