![]() Financial Daily from THE HINDU group of publications Saturday, Jul 30, 2005 |
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Spending Marketing - Brands Going hi-tech Priyanka Jayashankar
Tossing away her old Walkman, Bharti Venkateswaran is eager to download her favourite Bob Dylan songs and remixed Indian classics on to her new iPod. The dinosaurs of Jurassic Park and the Hogwarts Castle in Harry Potter and the Chamber of Secrets appear larger than life on her new flat-screen TV. "My kids and I love watching such movies on home theatre," says the Chennai-based special educator. As more households aspire to create `hi-fi pleasuredromes' in their homes, the turnover of consumer durables has shot up. According to the Internet and Online Association of India, electronic gadgets are among the top 20 products bought online. K. Vaitheeswaran, Chief Operating Officer, Fabmall.com, says new customers with a higher disposable income, as well as seasoned buyers going in for upgrades, have driven up the sales of audio and video systems in the last two years. "In fact, five years ago, in the music industry, CDs accounted for just 10 per cent of sales, with cassettes accounting for the rest. Now this is almost half-half." Samsung's flat-screen TVs have seen a sales growth of over 100 per cent this year. Says Akanksha Gupta, Corporate Communications, LG Electronics, "Although basic colour television models still do well, there is a definite consumer inclination towards cutting-edge display solutions, despite the higher price tag." Tech enthusiasts like L. Mahesh Kumar study product manuals thoroughly and window-shop a lot before zeroing in on the right brand. Recalling that his first gadget purchase was an Onida Walkman, the engineering professor says, "I am never anxious to upgrade my appliances, and prefer user-friendly and cost-effective brands." Pavan Padaki, Creative Director of Brandcomm, has an interesting take on gadget buyers. The latest-gadget freaks look out for cutting-edge models and read gadget reviews. While "desire fulfilling consumers" try to keep up with the Joneses, "future proofing" buyers do not purchase the latest appliances and go in for feature-loaded models, which may become obsolete in no time. In fact, some IT professionals are not big spenders on electronic goods. Take, for instance, Aditya, Business Development Manager at Novatium Solutions, a computer hardware company, "Upgrades for TV/VCD players cost a bomb! I always buy with a vision of the future." He prefers to unwind with a Discman and a couple of books. After tapping away on his IBM Thinkpad, Ashok Srinivasan, Vice-President, Operations Support, Expertus Infotech Pvt Ltd, tunes into his new Philips flat screen and AIWA DVD player at home. For now, he has put other gadget purchases on the backburner.
Hi-tech convergence
Rickety video recorders and audio players are making way for versatile home entertainment systems. LG's MyHomNet has three variants priced Rs 1-3.5 lakh. The system enables users to simultaneously watch live and recorded telecasts, browse through a library of digital photos on PDPs, stream MP3 music to the home theatre, and put together a creative slideshow on the LCD TV. As LG's Gupta, puts it, "The most important feature that a consumer looks for is the convergence of technology. It is, therefore, no longer sufficient for a system to just play cassettes or CDs, it should have the capability to play MP3, DVD and VCD as well." On the home front, information technology and entertainment are getting entwined. Buyers of DVD players, MP3s as well as digital cameras are becoming dependent on PCs for burning, editing, and compiling audio and video files. "Gone are the days when we sought a camera for still images and an audio system for music. The future is about creating an entertainment eco-system," says Padaki.
Designing in sync
Product designs make a lot of difference for those who splurge on designer homes. Apple has unveiled its iPod range with convergence features and sophisticated designs. About 400 accessories are available to help integrate iPods with the consumer's lifestyle. The music player is available in white, gold, green, pink and silver to appeal to fashion-conscious youngsters. Takers for iPods range from designers and filmmakers to students, corporate executives and celebrities, says an Apple official. Samsung, for its part, has given more weightage to the design of its MP3 players. The YPT5 MP3 model weighs only 30 grams and Samsung's MP3 players have an LCD screen. The Korean major has also introduced the digital camcorder range `Miniket,' weighing merely 150 grams. "The product differentiation for our camcorders is their compact form, convenient functionality and their communication/connectivity with other devices," says a Samsung official. As living spaces shrink across metros, R&D teams are developing more compact appliances. In fact, LG's latest innovation `the Super Slim TV' is targeted at smaller residences. Prices of consumer durables have plummeted due to rising competition in the industry. Gizmos are becoming affordable to a wider cross-section, thanks to rising disposable incomes and a slew of financial schemes.
Age no bar!
Market trends are also shattering age stereotypes. Samsung officials observe that students and younger professionals drive the demand for laptops, since entry-level prices have dropped. Fabmall's K. Vaitheeswaran also ascribes high laptop sales to Wi-Fi and broadband connectivity and the fall in phone rates. "B-schools provide students with laptops as part of courseware itself," he adds. Children, too, have a say on what gadget brands their parents should go in for. Lifestyle-oriented gadgets are, in fact, a draw among consumers in the 50-plus age group. R. Ramakrishnan, a 52-year-old metallurgical engineer in Bangalore, is as up-to-date about MP3s as his children. He patiently peruses the manual of his VCD player and has added a digital camera to his shopping list. "I go in for high-quality entertainment gadgets and so do my colleagues." Apple claims that iPod buyers span the 8-80 age group. "On the one hand we find kids working on laptops, and on the other, we have elders enjoying music on their portable music systems, which they have downloaded on their own," says LG's Gupta. Picture by Bijoy Ghosh
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