A changing CTV picture

A tectonic shift is taking place in the colour television (CTV) market. Yes, it is still the fastest growing sector in household durables, but with changing consumer habits, plumetting prices and a range of offerings, most of the action is at the lower end of the 7.09 million sector.

Until two years ago, models priced above Rs 11,000 accounted for 42 per cent of the CTV market. In comparison, the lowest end, models below Rs 8,000 accounted for 24 per cent.

In 2003, the picture had changed with the lower end growing by 8 per cent and emerging as the largest segment with a 32 per cent share.

The top end appears to have shrunk 14 points and now accounts for a mere 28 per cent., according to report by consumer durable research firm ORG-GFK.

"This is because colour televisions suffer from high penetration amongst households and there has been price erosion within the category," says an industry analyst.

For instance, prices of a 14 inch flat TV are down from Rs 10,500 two years ago to Rs 8,500. In the same period, the 21 inch flat "" the fastest growing model "" is down from Rs 14,000 to Rs 11,000.

Over the last year, CTVs grew 8.1 per cent in volume while value growth was a mere 0.1 per cent. Of this, the flat segment, which contributes 12 per cent to CTV sales has been growing at a scorching pace by 98.5 per cent. In 2003, 8.52 lakh units of flat TVs were sold.

The conventional TV grew by a mere 1.8 per cent in volume (62.42 lakhs units) and in value declined by 8.1 per cent (Rs 6,065.55 crore).

The trend indicates that consumers are upgrading and towards larger sized, technologically superior models. At 42 per cent, the north continues to be the biggest CTV market which largely comprises the conventional (round) model. The west and the south are predominant markets for flat TVs.

Korean chaebol LG continues to dominate the CTV market with an 18.2 per cent share with sales of 12.93 lakhs units. Following close behind is Samsung with a 15.1 per cent market share (10.70 lakh units). Mirc Electronics' Onida has a share of 11.2 per cent.