Unforgotten Brands: Onida

Vijay Mansukhani’s story is one of transformation, risk-taking, and visionary thinking that helped redefine the Indian consumer durables market. Born and raised in Mumbai, Vijay pursued marine engineering and eventually joined the Shipping Corporation of India (SCI). His career path took him overseas to Australia and Iran, where he worked in the merchant navy during the 1970s. During this period, Vijay was earning a comfortable salary, significantly higher than what his peers in India were making.

However, his life took a dramatic turn when he met Gulu Mirchandani, a BITS Pilani graduate working in the pharmaceutical industry.

Television Foray

Gulu and Vijay’s meeting was the catalyst for Vijay’s entrepreneurial journey. Despite the stability and lucrative pay of his job in the merchant navy, Vijay was inspired by Gulu’s vision and decided to leave his job to become an entrepreneur. The decision was risky, especially considering the uncertain terrain of India’s consumer electronics market at the time. However, the timing was fortuitous. The Asian Games were about to be held in Delhi, and then-Prime Minister Indira Gandhi had just announced the advent of national telecasts and colour television. Vijay recognized the opportunity this presented and decided to dive headfirst into the business world.

Naming

Gulu Mirchandani, who had always been clear about wanting to keep his family name separate from his brand, was looking for a name that would resonate with Japanese origin, a popular association with quality electronics. During this search, he and his wife stumbled upon the name “Oneida,” a European cutlery brand, in a magazine. They decided to modify the name by dropping the ‘e,’ arriving at “Onida.” Interestingly, “Onida” also translates to “devil” in Japanese, which later became the inspiration for the brand’s iconic devil imagery.

Onida’s journey began with challenges, especially in securing bank credit. Undeterred, Vijay and Gulu decided to bootstrap the company, using their funds and support from private financiers.

Despite the financial constraints, Onida quickly became a household name in India, particularly for its bold and unconventional advertising. The brand’s advertising strategy broke away from the technical jargon that dominated the market. At a time when brands like BPL, Videocon, and Sony were the big players, Onida decided to stand out by creating advertisements that played on human emotions, specifically envy and pride.

Advertising and the Devil

The Onida devil, introduced in the brand’s advertisements, became one of the most recognizable icons in Indian advertising history. Gopi Kukde, the art director at Avenues, the ad agency behind Onida, wanted to turn the brand into a status symbol. Kukde’s vision led to the creation of the tagline “Neighbour’s envy, Owner’s pride,” a phrase that became synonymous with Onida. The devil character, portrayed by David Whitbread, added a unique edge to the brand, embodying a mischievous yet appealing figure that warned consumers not to compromise on quality when buying a television.

To read more – https://onlykutts.com/index.php/2021/07/08/onida-neighbours-envy-owners-pride/

The strategy worked phenomenally well. Onida’s market share soared from a modest 5-6% in 1981 to an impressive 19-20% by 1995. The brand’s bold advertising and the devil’s warning resonated deeply with consumers, making Onida televisions a coveted item in middle-class Indian households. Onida wasn’t just selling televisions; it was selling a lifestyle, a status symbol that set its owners apart from the rest.

By 2009, Onida had reached its peak, with business sales touching $267 million. The brand had successfully diversified into other consumer electronics, including air conditioners and washing machines, further solidifying its presence in the Indian market. Onida’s success story is a testament to the power of bold branding, strategic risk-taking, and understanding the pulse of the consumer market.

Despite facing stiff competition from foreign brands and navigating through challenging economic conditions, Onida managed to remain a significant player in the market. Its legacy as a brand that redefined consumer durables in India continues to inspire new generations of entrepreneurs. The story of Vijay Mansukhani and Gulu Mirchandani is not just about building a successful business; it’s about pioneering a brand that resonates with the aspirations and emotions of millions of Indians.

Reference

https://www.business-standard.com/article/management/onida-s-desi-innovations-110101800015_1.html

https://theprint.in/feature/brandma/devils-in-the-detail-how-onida-tv-became-a-household-name-in-the-80s/203262

https://www.2080.ventures/stories/how-an-indian-brand-made-a-43yr-old-legacy