The Hindu Business Line : Flat colour TV sales surge by over 70%

New Delhi, July 19 Even as the state-owned Prasar Bharati tried to levy taxes on television watchers and manufacturers, compelling industry players to fear a slow down in sales, recent industry data reveals that colour television (CTV) sales have actually been soaring.

While the industry recorded an increase of 30.6 per cent in CTVs for January-May 2007, the more startling fact was an increase of over 70 per cent in the sales of flat tube CTV segment, with LG Electronics India Pvt Ltd and Samsung India Electronics Pvt Ltd leading the way.

“While the colour TV industry has been witnessing a steady and rapid growth, it is the flat panel tube CTV segment that was the show stopper. In fact, flat CTVs are witnessing a phenomenal surge in sales that is bound to continue,” said the Consumer Electronics and Appliances Manufacturers Association (CEAMA).

According to the association, better technology resulting in improved picture quality and a diminishing price difference between the traditional curve CTVs and flat CTVs, are the primary reasons for an increase in the latter’s popularity.

According to ORG data for the five-month period January to May 2007, the total CTV sales touched the 42,54,700-units mark in terms of volume and the Rs 3,975.48-crore mark in terms of value. The flat panel CTV segment formed 64.3 per cent of the entire market, worth Rs 2,545.81 crore with a total of 27,34,000 units sold during the period. The conventional curve CTV segment stood at 33.5 per cent of the whole market, worth Rs 813.28 crore (14,26,600 units).

However, what is interesting is that the flat panel CTV grew at a phenomenal 70.9 per cent in terms of volume and 49.1 per cent in terms of value while the curve CTV segment grew at a considerably slow pace of 12.7 per cent in terms of volume and 23.7 per cent in terms of value for the same period over previous year.

From the industry perspective, while LG stole the thunder, having sold a total of 10,93,700 units for Rs 1,010.07 crore during January-May 07, capturing a 25.7 per cent market share, Samsung stood a close second with 14.1 per cent market share having sold 5,98,900 units for Rs 728.09 crore, followed by the home grown Onida, which sold 4,00,900 units for Rs 362.41 crore to capture 9.4 per cent share.

In terms of segments, it was LG again that led the race in the flat panel CTV segment with 28.1 per cent market share followed by Samsung which captured 20.7 per cent share with Onida in the third position with 10 per cent market share. LG, once again was the frontrunner in the curve CTV category, having captured 21per cent market share, followed by Videocon with 10.7 per cent share and Onida with 8.7 per cent share.

However, another interesting phenomena to be taking shape in the CTV industry is the rapidly increasing popularity of the LCD and plasma CTVs, where Samsung emerges as the hands down winner, capturing 39.9 per cent market share in the LCD segment followed by LG with 26.5 per cent share and Sony with 13.4 per cent shares.

“We are expecting the flat panel CTVs to contribute 11 per cent by volume to our total CTV sales this year,” said Mr R Zutshi , Deputy Managing Director , Samsung India. “In fact our latest offering, the 19 inch LCD TV, we hope will further boost flat TV consumers to upgrade to the LCD television category. In addition to strengthening our LCD range offering, we are also offering consumers unique combo offers of home theatres and LCD TVs packaged as a solution. Samsung is also enhancing the visibility for its LCD televisions by setting up attractive LCD displays at around 500 multi brand counters across the country,” he added.

According to the association, while the LCD category is growing at over 100 per cent, the plasma segment is growing at around 70 per cent.

The association expects that during 2007, there will be total sales of around 4 lakh LCD TVs in India, while that of the plasma category will be around 75,000 units.

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