AKAI’s Growth Playbook for Tier II and Tier III Cities

Founded in 1929 in Tokyo, Japan by Masukichi Akai, AKAI is a consumer electronic brand known for its audio and consumer electronics products. The brand has over nine decades of experience, enriching the customer’s experience via quality products, reliable services and value-driven operations.

‘‘Since its inception almost a century back, AKAI has embodied the values of precision, innovation and craftsmanship,’’ says Anurag Sharma, MD & CEO, AKAI India.

In 2016, the brand was bought by HomeTech Digital Limited (HDTL), a future forward electronics company with a clear mission to bring global quality and innovation into homes across India, at affordable prices.

‘‘Headquartered in Chandigarh, the brand now offers 60 products across 6 categories, with a mission to deliver Japanese precision with an Indian heart,’’ shares Anurag.

Brand’ Journey and Philosophy

Talking about the brand’s evolution, Anurag says, ‘‘Our business journey has evolved from the thought process of a Japanese legacy brand to a modern consumer electronics entity  that addresses the needs of the contemporary Indian buyer.’’

He further shares that the brand found its root in Japanese Mottainai philosophy of ‘simplicity, purpose and respect for resources’ while adapting to new age ideas of innovations and value for our customers.

AKAI’s Market Presence

AKAI has a pan-India presence, having over 4000 retail stores. Apart from metros, the brand also has its footprint in Tier 2 and 3 cities.

Talking about the brand’s market footprint, Anurag says, “AKAI products are currently available through more than 4,000 retail outlets across India, spanning metros, Tier II and Tier III cities, and beyond.

He adds that while the brand continues to strengthen its presence across Tier I markets, Tier II and Tier III cities remain a key focus area and are emerging as significant growth drivers for AKAI. These markets represent a powerful convergence of rising aspirations and increasing purchasing power, creating substantial opportunities for sustained growth.

He further shares that the brand has over 1200 service centre locations, serving 19000 pin codes, ensuring ‘worry-free’ product purchase across India. The brand also has a  large sales and distribution network of up to 164+ regional distributors, ensuring product availability across the length and the breadth of the country.

Digital Footprint

Emphasizing the brand’s growing digital footprint, Anurag shares that AKAI products are also available through the brand’s official website as well as select e-commerce platforms, strengthening its omnichannel presence and accessibility for consumers.

Omni Channel Strategy for Expansion

The brand has a robust retail network of physical stores, an in-house D2C platform and  an online presence with selected third-party players.

Talking about the brand’s Omni Channel strategy, Anurag says, ‘‘We strive to achieve a seamless balance between growth and stability, and an omni channel strategy is the right way ahead to fuel up the expansion plans.’’

He further discusses that the brand’s in-house teams, trusted partners and efficient service network are the important pillars binding these channels, providing them seamless buying as well as post sales experience for the customers.

He sums up that the high street stores and D2C are giving AKAI the respective width and the depth for a wider reach.

‘‘While convenience emerges to be the ‘first love’ for Indian consumers, they shall never divorce the actual look, feel and touch provided by the physical retail stores,’’ says Anurag.  

Consumer Electronic Market in India

According to Maxamize Market Research, the India consumer electronics market is expected to reach USD 159.95 Bn by 2034 having a CAGR of 6.15% during the forecasting period 2026-2034. The industry is booming with changing consumer preferences, growing GDP and government policies that are paving the way for industry growth.

Talking about the consumer electronic market, Anurag says, “The most striking trend we have observed is the significant evolution in consumer choices over the past decade. Preferences in consumer electronics have gradually shifted from being price-driven to becoming increasingly value-driven.”

He adds, “While regional factors continue to influence consumer behaviour, a Tier II or Tier III consumer today is no longer willing to accept an inferior version of the products available to their counterparts in metro cities. As a brand, AKAI is responding to this shift by developing products that deliver uncompromised quality, with honest pricing.”

Market Competition

Talking about the growing market competition in the consumer electronic segment, Anurag shares, ‘‘The competition is real, but healthy. The market today is majorly divided between ‘high-priced Korean brands’ on one end and ‘price-driven Chinese players’ on the other. While some offer aspirational equity, one cannot leave behind a mass of Indian consumers who are unwilling to pay those premiums. Meanwhile, several players do offer price advantages but  through ‘one-size-fits-all’ product range, without truly understanding the ethos of the Indian customer.’’

He further shares that AKAI differentiates itself from its competitors through its repositioning strategy that is centred on delivering value without compromising on quality, marketing and distribution push, a robust after-sales service network, and local assembly capabilities that help strike the right balance between affordability and serviceability.

Product Innovations

Product Innovation is not just a buzzword at AKAI but a part of the brand’s ethos and DNA.

Citing some of the examples, he shares, ‘‘We’ve innovated LED TVs with color optimizer technology aiding color vision deficiency. Our new PowerView TVs offer stunning visuals, seamless AI, and immersive sound. Similarly, our washing machines are designed to be a ‘spa’ for clothes. The latest NXT series of Air Conditioners are built to withstand 55-degree heat, featuring built-in Ayurvedic and PM1 Nano filtration for home wellness. Refrigerators combine advanced cooling technology, hygienic storage components and thoughtful design to provide long lasting performance.’’

Sustainability and Energy Efficiency: The Cornerstone of AKAI Legacy

AKAI’S products are designed to save electricity and perform efficiently without compromising on essential features.

‘‘At AKAI, sustainability and energy efficiency goes hand in hand,’’ says Anurag. ‘‘The integration of the Mottainai philosophy of resourcefulness in building products ensures that our appliances are well engineered to serve our customers’ needs without being bloated by features which are seldom used.’’

Future Plans

Over the next decade, AKAI plans to grow significantly by obtaining a higher market share. The brand’s key focus will remain on broadening category presence, emphasizing stronger brand positioning, and further expanding its service and retail networks.

‘‘Our commitment to offer quality, value-driven solutions to our  rural and urban customer segment will continue to be a strong focal point. Also, we look forward to deepening our efforts to cultivate more meaningful relationships with our partners and build a stronger ecosystem at large,’’ signs off Anurag.