Cos investing a lot in pushing this segment; elections and T20 World Cup help sales increase.
The market for flat panel display (FPD) television sets is expected to double this year on the back of improved consumer sentiment and factors such as the general elections and the T20 cricket world cup.
The category, which consists of LCDs, plasmas and light emitting devices (LEDs), is set to regain its growth momentum after cautious spending by consumers in 2008. While the upgrade market is still fuelling growth, the industry believes these trigger events will add to the demand.
The category is around 8 per cent of the total TV market but companies like Samsung, LG, Panasonic and Videocon are betting big on it and rolling out new technologies and sizes.
Korea’s Samsung has taken the lead by introducing the LED high-definition TV category in India to boost its FPD sales. The range is priced at Rs 1.25-3.5 lakh and was launched in the US last month. “We are expecting our LED TV volumes to be 10 per cent of our FPD volumes this year,” said R Zutshi, deputy MD, Samsung India. Samsung plans to sell around 600,000 FPD TVs this year, double those sold in 2008.
LG India has prepared a number of launch programmes, hoping to eat into the competition’s share on the back of its consumer insight products. “We will introduce new technology in a phased manner, starting with Scarlet 2.0 this month, the 200 Hz LCD by the end of May, followed by our LED range in June, to capture around 35 per cent market share from the current 22 per cent,” said Amitabh Tiwari, business group marketing head, Home Entertainment & B2B.
LG also hopes to leverage its association with the International Cricket Council during the T20 world cup. The company will invest around Rs 100 crore on flat panels this year, as against Rs 60 crore last year. “Last year, we were lagging in terms of channel extraction. This year, we have not only expanded the channel outreach but also invested in better display areas,” Tiwari said.
Panasonic has increased the capacity of its Noida TV facility to 900,000 units from 350,000 units of LCDs. It is also betting big on its association with the International Film Academy Awards (IIFA) this year as a green partner. “We hope to sell three times of what we did last year,” said Sabiha Kidwai, general manager-marketing (consumer products), Panasonic India. The company sold around 100,000 units in 2008.
Videocon is betting big on tier-II & III cities, with almost 40 per cent of its sales coming from there. “While there is still an opportunity in the metros, it is these cities which are opening up to the flat panel segment,” said Sanjeev Jain, product business head, Consumer Electronics. The company is also scouting for sponsorship opportunities in the entertainment industry and institutional sales. The company recently bagged an order for 500 LCDs for the Mumbai airport.
