Sony aims for top slot in LCD market

Japanese consumer electronics major Sony India is taking the battle for the top-end consumers to the Korean camp. Sony aims to topple its Korean competitors "" LG and Samsung "" to bag the top slot in the Indian LCD television segment.

The company is targeting the high-value market segment on the back of introducing technologically advanced products and superior customer service, Sony India Managing Director Masaru Tamagawa said.

Currently, the LCD TV market is low in volume with sales at an abysmal 80,000 units in 2006. However, the market is expected to cross the 3 lakh-mark this year. LG India executives said they expect the market to grow three-fold.

"We plan to be the leaders in LCDs above 32-inch screen size," said Tamagawa. Following the recently concluded ICC Cricket World Cup, it plans to aggressively promote its Bravia brand in India.

He said, "About 35 per cent of the Bravia sales come from company's brand shops. We cannot ignore the changing retail dynamics in India as these will fetch volumes. We are in the process of finalising business relations with organised retail chains."

However, competitors are not shying away. A senior Samsung executive said, "We are aiming to grab 50 per cent of the market share in LCDs with an increased focus on advertising and shop displays." Last year, Samsung sold 75,000 flat panel display units.

An LG executive added that in a growing market there was opportunity for every player to grow.

Sony is similarly banking on a low-volume and high-value growth strategy in other segments such as digital cameras, handycams and laptops to achieve 30 per cent growth.

In video recorders, the company has launched high definition Handycam and Cybershot digital cameras, with both targeting the top-end customer.

"The company is addressing a niche segment with not much expectations in volume terms. About 70 per cent of the Japanese consumers converted to the high definition model when Sony launched them in Japan. We estimate that the trend will come to India, but will take some time," said Tamagawa.

Sony, which enjoys 50 per cent of the global handycam market, aims to sell 3 lakh units this year in India. The company claims that it has cornered two-thirds of the handycam segment. In digital cameras, the company claims to have a 30 per cent share. The market size for digital cameras in India is currently estimated at 1 million units.

While other consumer durable companies are announcing research and capacity expansion in India, Sony has decided to continue with its thrust on marketing.

Explaining the rationale behind it, Tamagawa said, "With increasing internet connectivity and higher educational levels, Indian consumers are well aware about the latest trends.

"The consumer demand is for international models and we don't see a need for India-specific product. Currently the company imports Indian supplies from countries such as Japan, Thailand and Malaysia. We have already announced that we will manufacture Sony Ericsson cellphones, but we will have to find out if it is feasible for other products."

As a part of its retail expansion, Sony plans to open about 350 Sony World and Sony exclusive showrooms in India from the current 100 Sony World outlets and 150 Sony exclusive showrooms.