Financial Daily from THE HINDU group of publications
Wednesday, Jul 03, 2002
Industry & Economy - Television Sets
Marketing - Trends
Soccer works magic for colour TV sales
NEW DELHI, July 2
THE `soccer fever' has brought in the `golden boot' not just for Brazil, but also for the colour television (CTV) players who are singing `un dous tres' all the way to the bank.
The industry, which was just showing 10 to 15 per cent increase from January onwards saw a robust increase in sales, "almost 50 per cent increase in sales has been recorded by a majority of the players'', CETMA (Consumer Electronics and Television Manufacturers' Association) officials told Business Line.
For the three months ended June 30, 2002, 1.6 million units of colour television (CTV) sets were sold against 1.1 million units sold during the same period last year. "It's not just Brazil which has won the cup, but the industry has also won,'' industry sources said.
Interestingly, the black and white segment also showed an increase in sales. In May alone, four lakh black and white TVs were sold.
No doubt promotional campaigns launched by key players such as Samsung, LG and Sony to name a few also added to sales; but overall it was the "soccer fever''. And the industry seems to have cashed in on the same with almost 1.5 billion viewers watching the finals.
"Due to this success the industry is expecting to close the year with a total sales of about 6.5 million against last year's 5.3 million units. Further, the festive season during October-December and knock-out World Cup Cricket in September to be followed by the World Cup Cricket in early 2003 would bring more cups of joy,'' industry sources said.
Acknowledging that growth had been more than expected, Samsung India officials said the company had recorded about 110 per cent increase in sales during May-June this year as against last year.
"The promotional campaign of the company "daba ke jeeto'' (win hands down) also contributed to higher sales but the market was primarily driven by soccer,'' Samsung officials said.
The company saw major sales in the East followed by South. "This clearly indicates that the season was more for soccer,'' the sources said.
Not lagging behind was the other Korean major LG, which saw growth in sales of 102 per cent in May and almost 52 per cent in June.
Commenting on the performance, Mr Pradeep Tognatta, Vice-President Sales and Marketing, LG Electronics India, said the market had been good for the industry. The reason for buoyancy in sales can be none other than "soccer'' as the company has seen an increase in sales in the East and Goa apart from North-East and Kerala.
Based on the current trend, the industry was expecting a growth of almost 25 per cent and above, CETMA said adding that if the Government followed the right policy, the figures could go up to 10 million units in the next two years.
Talking about the issues that could help the industry, the association said introduction of VAT and abolishing the Central sales tax system would have a good effect on the industry.
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