The picture seems to be getting brighter in the colour television (CTV) market with companies reporting a positive growth in May and June, in contrast to the over six months of slowdown when retail sales growth averaged a meagre 3-4 per cent and primary sales plummeted a whopping 16 per cent.
All top brands have seen a positive retail movement over the past two months and expect the growth curve to bend further up beginning August.
According to industry estimates, total units sold by CTV manufacturers in May was 4.12 lakh and in June over 4.2 lakh (against the average 3.5 lakh in the past months).
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May sales grew by 14.8 per cent over the same month in 2000, while June sales are expected to have grown around 15 per cent over last year and around 2 per cent over May figures, and is still growing.
Videocon chairman and managing director Venugopal N Dhoot said his company's June sales were higher 10 per cent over May and he is expecting a 15 per cent growth rate for the industry in July.
"August onward, I am optimistic the industry sales will show a growth rate of at least 25 per cent when the impact of a good monsoon and good harvest will start showing," he said.
Said Gurdeep Singh, director (sales, marketing and services) of National Panasonic India Ltd: "The trend is positive and the monsoons are expected to spur demand in rural areas which will have a cascading effect on the urban market as well. Our sales are growing 30 per cent since we are more focused on the niche high-end segment currently having a low base."
"By end-July, we should be selling larger numbers," said an executive with Samsung India Electronics, which recorded a combined sales of 88,000 units in May and June.
The Samsung executive attributed the change in fortunes to stabilisation of retail prices.
"In the previous months, there was an inventory pile up with retailers, which had resulted in massive pricing anomalies which not only impacted dealer margins sometimes, but also influenced consumer behaviour. Now, with that anomaly plugged, the consumer is making a decision at the retail-end also," he said.
LG Electronics, which does not approve of the ORG Gfk figures since they account for retail sales in select stores in chosen cities, also reported a spurt in demand during the last two months.
According to figures provided by the company, sales have increased around 12 per cent in June.