Hitachi to focus on premium TV market

Japanese consumer durable major Hitachi has reworked its India strategy.

The company has decided to target the premium end of the colour television market such as plasma televisions and has decided to give the mass market the go by.

The shift in strategy has been brought about by the growing premium end of the market and overcrowding in the middle segment, dominated by chaebols such as LG and Samsung, and domestic players such as Onida and Videocon.

Earlier, Hitachi had targetted the medium end of the colour television market with its conventional models through a tie-up with the Mulchandanis-promoted Baron International in 1999.

This alliance, however, broke up as after two years Baron preferred to continue its association with rival Japanese brand Aiwa. In December last year, Hitachi re-entered the Indian market launching its complete range of home theatre solutions with its main focus on plasma TVs.

The products are directly imported from Singapore. "After our split with the Baron group, we wanted to take a break from the Indian market and were focussing on other global markets. Now that there is an increased demand for high end audio products in the Indian market, we want to carve a distinct niche for our range of products," said Tarun Jain, regional marketing manager of Hitachi Home Electronics Asia.

The prices of its high end technology-based TVs are in the range of Rs 2.5-8 lakh. Hitachi is targetting a 20 per cent market share of the premium plasma TV market by 2005.

It is estimated that the Indian plasma TV market is set to grow by about 250 per cent from the current 3,500 units in 2003 to reach 8,000 units by 2004.

The Asian plasma TV market is poised to grow from 4.90 lakh units in 2003 to 8 lakh units in 2004.

Hitachi's products are positioned against NEC, Sony, Pioneer and Fujitsu.

Meanwhile, Hitachi is looking at launching other products such as refrigerators and washing machines through its Ahmedabad-based subsidiary Hitachi Home and Life Solutions at a later date.

Currently, Hitachi Home and Life Solutions manufactures and markets air conditioners.

Hitachi has a liaison office in Delhi that looks after procurement of materials and electronic components among other things.

It also has an equity interest in Telcon, a joint venture with Tata Motors for earth-moving equipment.