… by Mohit Narula, Managing Director and Country Manager, Ariston Group India
For years, appliance purchases in India were largely shaped by two considerations: the upfront price and immediate performance. Today, consumers are increasingly asking another question: what will this appliance cost me to operate over the years?
This reflects a broader shift in how households define value. As electricity consumption becomes a more visible part of monthly expenditure, buyers are looking beyond the purchase price and paying greater attention to long-term running costs. Energy efficiency, once viewed primarily as a technical specification, is increasingly becoming a practical factor in purchase decisions.
Recent household research reflects this change. A 2024 survey found that energy savings were the top consideration for 61% of respondents when purchasing new appliances, ahead of durability at 54% and appliance cost at 49%. The findings suggest that efficiency is becoming increasingly central to how consumers assess value, even in a traditionally price-sensitive market. The survey also found that this preference was particularly evident among urban and more educated respondents. (Source: Bureau of Energy Efficiency, Residential Energy Consumption Patterns and Appliance Ownership in India: Insights from a 2024 Household Survey).
What this tells us is that affordability is increasingly being judged over the lifetime of a product, and not just at the point of purchase. For the appliance industry, this is an important shift. The conversation is gradually moving from what a product costs to the value it delivers throughout its ownership.
This shift is particularly relevant in water heating. Water heaters are used regularly and retained for several years, making energy consumption an important part of the ownership experience. Buyers are increasingly looking not only at how quickly a product heats water, but also at how efficiently it performs over time.
Looking Beyond the Upfront Price
Affordability will always remain important for Indian consumers. However, the way affordability is being evaluated is evolving. A lower purchase price does not necessarily translate into lower ownership costs over time. Electricity consumption, durability, maintenance and product performance are increasingly becoming part of the equation.
This is where energy efficiency becomes significant. Consumers are beginning to recognise that a more efficient appliance can potentially lower energy consumption throughout its operating life. The purchase decision is therefore becoming less about lowest upfront price and more about the value an appliance delivers over its lifecycle.
For water heaters, energy ratings provide an accessible point of comparison. 5-Star BEE-rated water heaters offer consumers a recognised benchmark for evaluating energy performance, making it easier to compare products beyond price and capacity.
Efficiency Is Becoming Part of Everyday Value
As awareness grows, efficiency is increasingly becoming part of the everyday value consumers expect from an appliance. Consumers want products that deliver the required performance and comfort without consuming more energy than necessary. In water heating, this means balancing heating performance with efficient operation.
Technologies that help minimise energy loss are consequently gaining relevance. High-density PUF insulation, for instance, can help retain heat for longer and reduce heat loss. Intelligent temperature control and smart energy management can also help optimise energy use based on household requirements and avoid unnecessary wastage.
Such features may not always be the first specifications consumers ask about, but they increasingly influence how a product’s overall value is assessed. As awareness increases, the conversation is likely to move beyond basic capacity and heating speed towards efficiency, control, reliability and long-term performance.
Greater Awareness Is Raising Expectations
Consumers today have greater access to product information through energy labels, online comparisons, reviews and digital platforms. This makes it easier to understand the relationship between product features, energy consumption and long-term costs.
It is also changing what consumers expect from brands. They are increasingly interested in appliances that offer greater visibility over usage. Smart and connected technologies can support this shift through better temperature management and more informed energy use.
Efficiency is therefore no longer being evaluated through a single rating or feature. Consumers are increasingly considering how different technologies work together to deliver a consistent and convenient experience while reducing energy wastage.
Sustainability Is Strengthening the Decision
The focus on energy efficiency is also supported by growing environmental consciousness. Households are becoming more aware of the connection between everyday electricity consumption and their broader environmental footprint.
Sustainability may not yet be the primary reason behind every appliance purchase. However, when efficient products can offer both lower operating costs and more responsible energy consumption, the proposition becomes considerably stronger. Durability also matters, as products designed for longer operating lives can reduce the need for frequent replacements.
This is where efficiency and sustainability can reinforce each other. What is good for the household’s energy bill can also contribute to more responsible consumption.
The Future of Energy Efficiency
For manufacturers, the growing focus on energy efficiency will require a shift from simply adding higher specifications to creating products that deliver meaningful, measurable value to consumers. The next generation of appliances will need to go beyond efficiency alone, bringing together performance, comfort, reliability, convenience and smarter energy use. Efficiency will need to be viewed not just as a product feature, but as part of the overall consumer experience — and its benefits made easier for consumers to understand.
For consumers, greater access to efficient technologies and clearer information will make it easier to make informed choices. As India’s appliance market evolves, energy efficiency is likely to become less of a differentiating feature and more of an expected part of product value. Consumers will increasingly look for products that deliver performance, comfort and efficiency over time, while brands will need to ensure that technology translates into meaningful benefits in everyday life.
