Camcorder mart hots up

The low-volume high-value camcorder market is witnessing some activity, with falling prices, more competition and a plethora of hi-tech digital-models making their way into the market.

Camcorder prices on an average have come down by 25-30 per cent in the past few months. Two years back the average price of an analog model was Rs 38,000 - 40,000. This has come down to Rs 27,000.

Digital versions have also seen a similar price erosion over this period with average price coming down from Rs 60,000 to Rs 45,000.

Industry watchers say market is estimated to grow from its current size of a lakh units to 1.3 lakh next year.

The digital segment will grow faster and account for 55 per cent of total sales in the organised sector as against 35 per cent at present.

A similar jump - 15 per cent - is expected in the grey channel which today accounts for 85 per cent of camcorder sales.

"It is a nascent market which is set to grow very rapidly. Within the overall category, demand for digital versions is growing faster than the analog models. Consumers are increasingly realising that at a small premium of Rs 10,000, they can buy models that are smaller, compact and PC compatible," Ravinder Zutshi, director (sales) of Samsung India Electronics, said.

Demand is growing at 20-25 per cent per annum. The three players in the segment are Sony, Panasonic and Samsung. Growth is likely to be higher in the coming months driven in part by competition in this sector.

While Samsung introduced its range of camcorders comprising six models - two analog and four digital models - only in August this year - topping it up with its sleeker digital models in October, Panasonic has begun to consciously focus on this category in terms of advertising, product positioning, distribution network, standards, marketing of ancillaries from only this year.

Sony, on the other hand, has been in the market for a couple of years now.

"They knew what they were focusing pretty early-on with a separate team in place and were even advertising in a small way," industry sources said.

Samsung has priced its analog models at Rs 20,990 and Rs 28,990. Its 'MiniDV' range costs anything Rs 39,990 - 99,990. Panasonic altered its product line-up this year and increased the number of its models from five last year to eight now. Its seven digital models are priced between Rs 39,990 - 1,29,990. The analog version costs Rs 29,990.

"Digital camcorder prices are set to go down even further with rapid technological changes in this segment and a conscious focus by companies to drive it," Gautam Dhingra, product executive of National Panasonic India Pvt Ltd said.

Digital camcorders score over the analog versions because of features such as PC connectivity and finer resolution.