Financial Daily from THE HINDU group of publications
Saturday, May 25, 2002
Industry & Economy - Television Sets
Colour TV sales witness healthy growth rate
NEW DELHI, May 24
THE soaring temperatures may have led to a spurt in demand for air conditioners and coolers, but it is certainly not the only consumer durable segment which is witnessing growth this year.
According to the Consumer Electronics and Television Manufacturers Association (CETMA), colour televisions (CTVs) have witnessed a healthy growth rate in the past few months. According to Mr Suresh Khanna, Secretary General, CETMA, in April, CTV sales grew by around 15 per cent, when compared to last year's marginal growth in the same period.
The consumer electronics manufacturers are also busy sprucing up strategies to deal with the increase in demand. Samsung India, for instance, claims its sales (of CTVs) have grown by around 58 per cent in the first four months of this year and in April alone, CTV sales reportedly grew by 111 per cent over last year.
Korean major, LG Electronics, has also seen its sales grow by over 75 per cent during April. The company is now targeting to sell one million units this year. Mr Khanna says, "The reason behind the healthy growth in the category lies primarily in the forthcoming sporting events such as the World Cup Soccer.''
Another factor boosting sales is the rapid increase in demand for flat-screen televisions. The sub-segment is witnessing the highest growth among CTVs. "That is primarily because the price differential between super-flat and conventional picture tubes has come down by around Rs 2,000.
And manufacturers have passed on the benefit to the consumers as they are looking at achieving larger volumes by keeping small margins," says Mr Khanna. According to industry estimates, the contribution of flat TVs to the total CTV market is expected to grow from around 3 per cent (last year) to about 7-8 per cent this year.
Mr R Zutshi, Vice-President, Sales, Samsung India, "The trend in the market is towards flat screen televisions especially in the metros and mini-metros. The reason lies in the availability of the full range of flat televisions in the market and the thrust given by companies on this category through advertising."
Samsung expects the category to contribute around 12.5 per cent of its sales this year. Other than the flat screen segment, LG claims that its economy range of televisions, which was launched recently, is also witnessing high growth. Mr Chandramani Singh, National Product Head (Televisions), LG Electronics, says, "We are offering a higher value-for-money proposition in this range. For instance, our economy range comes with several features such as 200 channels, games and much more."
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