Financial Daily from THE HINDU group of publications
Wednesday, Dec 04, 2002
`LG leads colour TV market in India'
NEW DELHI, Dec. 3
IF Diwali had brightened up the growth prospects of the colour television industry, Christmas and World Cup cricket season may just see them making merry.
In the game of value and volumes, the Korean consumer electronics major LG seems to be the clear winner in the Indian market, if the ORG-GFK estimates for October 2002, are anything to go by.
The Korean player with a market share of 15.3 per cent is the number one followed by fellow Korean Samsung with a market share of 13.5 per cent.
However, there seems to be a divergent view as far as the total industry growth data are concerned.
"Consumer Electronics and TV Manufacturers Association (CETMA) views the figure to be much higher than what has been estimated by ORG," CETMA officials told Business Line.
According to ORG, the colour TV market has recorded a growth of 22 per cent in October, with industry volumes at 6.74 lakh units, while, as per CETMA, the market growth has been close to 9 lakh units.
Further, once the market leader in colour TV, BPL, is positioned at number four, according to ORG-GFK estimates for October, while Onida is placed at number three with 12.1 per cent of the market. BPL's share has dropped to a single digit 9.8 per cent. Videocon's market share is placed at 7.3 per cent followed by Sansui, another brand from Videocon group at 6.7 per cent and Philips at 6.3 per cent.
Some of the reasons cited for the industry growth are major consumer promotions, discounts, expansion in product range and competitive pricing saw increase in volumes this Diwali, industry officials say.
Commenting on the trend that most of the Indian players have seen an increase in volume but not in value, CETMA said, "There has been some value erosion but not much."
Elaborating further, industry sources said that in a competitive environment, all the players have gone for major restructuring, improved their supply chains, and cut down on their costs.
This has also led them cutting down in their profits, by selling at lesser margins, thereby creating a win-win situation for the customer, officials said.
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