ACs for Tier 2 and Beyond: Blue Star’s Smarter Play for First-Time Buyers

In a category dominated by big multinationals, Blue Star continues to hold its ground as a proudly Indian brand, known for its high-performance cooling and engineering-first approach. As the company rolls out its largest-ever AC portfolio—with 150 models across segments—it's also redefining what “smart” should mean for Indian households. In this conversation with MySmartPrice, Girish Hingorani, Vice President – Marketing (Cooling and Purification Appliances) and Corporate Communications, talks about smart ACs that go beyond gimmicks, energy transparency, regional consumer behaviour, and why Blue Star refuses to compromise on cooling even as it becomes more mass-premium in its appeal.

Major Takeaways from our Interaction:

  • Large Portfolio: Blue Star launched more than 150 models, spanning inverter, fixed-speed, smart, and hot-and-cold variants to cater to every budget and region. Where most brands try to keep their portfolio lean, Blue Star is adopting a slightly different route and looking at having multiple models and various price points so that they can reach out to the diverse and expanding user base. 
  • Making Smart ACs Useful: Keeping up with the changing times, Blue Star also has a range of smart ACs, but they believe that consumer education will go a long way in driving this adoption. To tackle this challenge, they are highlighting real use cases such as parental locks, temperature caps, programmable sleep profiles, and daily energy tracking. The company believes this move will help it go beyond basic app control or voice commands and also help consumers make a more informed decision. 
  • Staggered growth for Smart ACs: Although the company believes smart AC adoption will increase, growth in the southern markets will be uneven, with aspirational Tier‑2/3 towns expected to be the fastest adopters of smart ACs. Its strategy is to balance this with more affordable models for North India, where affordability dominates decision-making. While this seems to be a fair strategy, in a price-sensitive market like India, the brand is expected to face tough competition from brands with aggressive pricing and deeper retail networks.
  • Hot and Cold ACs Find a New Positioning: The Hot and Cold ACs are emerging as another category, and many brands this year are focusing on growing their share in this niche. Blue Star also confirmed that it has now shifted its strategy for this category and is positioning it as a year-round product. Earlier, they were promoting this category only in the winter and not getting the desired response. 

Our interview follows: 

Q. With such a massive lineup planned this year, is there a particular direction or insight that's shaping the kind of features you're prioritising, especially in terms of how Indian consumers actually use their ACs?

This year, we're launching 150 models across price segments, but the standout shift is our sharper focus on smart ACs, which are built around real, Indian use cases rather than just tech-for-tech's-sake. Take remote control and misuse prevention. Now, a parent can lock the AC remotely if kids or house help are running it inefficiently, or even cap the temperature so it can't go below 25°C. Then there's night-time comfort. Many users wake up feeling too hot because the AC was timed to switch off at 5 AM. With our new models, you can pre-program every hour: temperature, fan speed, even when to switch from cooling to fan mode—creating a customised sleep profile. Lastly, energy consumption tracking is a big demand. Our app gives a clear breakdown of daily or monthly usage, helping users make smarter decisions. They can adjust set temperatures to reduce bills. This is how we're defining smart: not as flashy extras, but features that make a real difference in everyday use.

Q. You mentioned that Blue Star has enjoyed strong word of mouth and a steady climb in market share. What's driven this brand affinity?
For us, performance comes first. Blue Star is known for reliable cooling, even in the harshest Indian conditions. While many brands chase volume or lower price points, we refuse to compromise on core cooling performance. That's what keeps us relevant. Even though we don't have the kind of multichannel footprint the Koreans do, we've focused our energy on what matters most to Indian buyers, which is cooling that works and lasts.

Q. Blue Star has always had a slightly premium image. Has that changed with the broader portfolio?
Yes, we were more premium in the past, but now we've diversified. Our entry-level models are more affordable but still deliver strong cooling. We might cut down on a few frills, such as switching from a four-way swing to a two-way setup or excluding PM2.5 filters. Having said tha,t we never cut down on performance. North India is very price-sensitive, so it was critical for us to offer a full range. We refer to our positioning as "mass-premium"—accessible yet trusted.

Q. Window ACs are a shrinking segment. Why is Blue Star still strong in this space?
True, window ACs are mostly for replacements now. But because fewer players are active in that segment, we see a stronger presence there. That said, it's not a growth category. Split ACs are the future, and most of our focus lies there.

Q. There's been growing interest in hot and cold ACs, especially in the northwest belt. What's your view on this trend?
Hot and cold ACs are definitely gaining ground in markets that experience meaningful winters, think: Rajasthan, Gujarat, North India. We've launched six models in this category. They offer heating at one-third the energy cost of a traditional room heater, while eliminating that stuffy, claustrophobic feeling. But these need to be sold during the regular season, not winter. No one buys a ₹40,000 product for a one-season need. But they will invest in it if they see year-round value.

Q. Smart ACs seem to be trending, especially in certain regions. How does regional adoption vary?
South India has always been ahead in technology adoption. Smart ACs have picked up faster there. North India still leans price-first. That's why our portfolio covers everything from smart-enabled to more basic variants. Also, our marketing, like having ads during IPL, is designed to reach Tier 2–3 markets, where we see massive first-time buyer potential. These buyers are aspirational and brand-aware. Our focus is on distribution—partnering with distributors where retail presence is limited—to expand reach.

Q. As an Indian brand, you're already manufacturing here, yet we don't often hear Blue Star push the ‘Make in India' angle. Why is that?
We've always manufactured in India, and we're proud of it. But we don't harp on it in our messaging, perhaps because it’s already ingrained. For multinationals, it's a new talking point. For us, it's just who we are.