Television makers such as Sony, Panasonic and Videocon are bringing down the prices of their entry-level LCD and LED TV sets to target first-time buyers and those who want to upgrade from CRT models, a segment which is shrinking fast.
Sony, for the first time, is entering the 22-inch LED television segment — one of the fastest-selling screen sizes in India — while Panasonic and Videocon will soon be unveiling models costing less than . 8,000, bringing down the starting price of flatpanel televisions from . 9,900 at present.
“CRT television replacement is a big market opportunity in India and we are poised to grow there by launching a smallsize model which we believe will trigger 60% growth in television business for us this year,” said Sony India sales head Sunil Nayyar. The company is going to price its 22-inch LED TV in the sub-. 15,000 segment, cheaper than its entry-level offering now, a 24-inch model priced at . 17,000. Panasonic India managing director Manish Sharma said his company will launch new entry-level LED models targeting the CRT market in smaller towns. “There would be two models which we developed in our Indian R&D centre,” he said.
Market leader Samsung too is widening its entry-level portfolio, which includes models in 22- and 23-inch screen sizes, as it plans to launch two 24-inch TVs soon. “There is an upward swing in demand for flat-panel televisions in B- and C-class towns due to faster transition from CRT television,” said Samsung India Electronics deputy MD Ravinder Zutshi.
The latest moves come after LG exited the CRT television market in India last year, becoming the last multinational brand to do so. The CRT television market — 8.5 million units in 2013 — is expected to shrink to four million units this year, according to industry estimates. At the same time, sales of flatpanel televisions are projected to grow to 8.5 million units in 2014 from 6.2 million last year. Apart from Videocon and Onida, there are a slew of small local brands in the CRT television market. But Videocon too plans to drive the increasing conversion rate from CRT televisions to flat-panel TVs by launching a 16-inch LED television model this month, priced at. 7,990.
“This will be the lowest price point in flat-panel TV in India and will compare favourably with the CRT models which are sold at . 6,000. We are also giving a CRTtype look to these televisions by bringing protruding speakers,” said Videocon chief operating officer CM Singh.
Pulkit Baid, director of eastern India’s largest durable retailer, Great Eastern Appliances, said TV makers were trying to fill the void in sales created by the exit of major CRT television brands. “There is a sizeable sub-. 10,000 TV market which the companies were not able to fill with their current line-up, which has forced all to launch smaller screens,” said Baid.
Television makers believe the move will help put the industry back on track for high growth rate. The sector has been hit by poor consumer sentiment in a weak economy amid a 10-12% increase in prices due to a weaker rupee. .
Source: The Economics Times
Sony, for the first time, is entering the 22-inch LED television segment — one of the fastest-selling screen sizes in India — while Panasonic and Videocon will soon be unveiling models costing less than . 8,000, bringing down the starting price of flatpanel televisions from . 9,900 at present.
“CRT television replacement is a big market opportunity in India and we are poised to grow there by launching a smallsize model which we believe will trigger 60% growth in television business for us this year,” said Sony India sales head Sunil Nayyar. The company is going to price its 22-inch LED TV in the sub-. 15,000 segment, cheaper than its entry-level offering now, a 24-inch model priced at . 17,000. Panasonic India managing director Manish Sharma said his company will launch new entry-level LED models targeting the CRT market in smaller towns. “There would be two models which we developed in our Indian R&D centre,” he said.
Market leader Samsung too is widening its entry-level portfolio, which includes models in 22- and 23-inch screen sizes, as it plans to launch two 24-inch TVs soon. “There is an upward swing in demand for flat-panel televisions in B- and C-class towns due to faster transition from CRT television,” said Samsung India Electronics deputy MD Ravinder Zutshi.
The latest moves come after LG exited the CRT television market in India last year, becoming the last multinational brand to do so. The CRT television market — 8.5 million units in 2013 — is expected to shrink to four million units this year, according to industry estimates. At the same time, sales of flatpanel televisions are projected to grow to 8.5 million units in 2014 from 6.2 million last year. Apart from Videocon and Onida, there are a slew of small local brands in the CRT television market. But Videocon too plans to drive the increasing conversion rate from CRT televisions to flat-panel TVs by launching a 16-inch LED television model this month, priced at. 7,990.
“This will be the lowest price point in flat-panel TV in India and will compare favourably with the CRT models which are sold at . 6,000. We are also giving a CRTtype look to these televisions by bringing protruding speakers,” said Videocon chief operating officer CM Singh.
Pulkit Baid, director of eastern India’s largest durable retailer, Great Eastern Appliances, said TV makers were trying to fill the void in sales created by the exit of major CRT television brands. “There is a sizeable sub-. 10,000 TV market which the companies were not able to fill with their current line-up, which has forced all to launch smaller screens,” said Baid.
Television makers believe the move will help put the industry back on track for high growth rate. The sector has been hit by poor consumer sentiment in a weak economy amid a 10-12% increase in prices due to a weaker rupee. .
Source: The Economics Times
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