The Hindu Business Line : Not falling flat

Durables makers are betting their last rupee on flat panel televisions. Slowdown or no slowdown, they say, status-conscious and indulgent consumers are the ones who are buying these products and expanding the market in the country.

For newly employed gizmo freak Chaitanya, the hefty price tag is not a barrier to his desire of owning a sleek beauty. “I have been dreaming of owning a 42-inch flat panel television. It is the perfect canvas to adorn my bare walls,” he gushes.

To companies such as Samsung, Sony, LG and Videocon, the aspirations of customers such as Chaitanya are thrill and encouragement. For them, such customers may bring lower volumes but far higher margins.

A quick survey suggests that among the most desired objects, LCD TVs figure on top of buyers’ agenda.

“No one had anticipated such a rapid growth in the LCD market in India. In the next two to three years, it will surpass the cathode ray tube television (CRT) market,” says Masaru Tamagawa, Managing Director, Sony India.

Sony, which is in the process of phasing out its CRT range, says its core focus for the next couple of years would be capturing the LCD market. “We will shift our focus from CRT television to LCD. This year, we will have the strongest line of LCDs,” Tamagawa adds.

Since 2007, LCD TVs have played a major role in driving the market’s growth. This means that the LCD television market’s size is set to increase from 10 lakh units to 15 lakh units. And manufacturers are applying the age-old theory – make hay while the sun shines.

Most companies say that flat panel television is where the moolah lies. It is a treasure waiting to be explored, industry analysts note.

“We are looking at a 30 per cent market share in the LCD market in FY09. Our strategy is to develop cutting-edge technology with sleek stylish models. We hope to sell about 4.50 lakh units of LCD TVs in the current fiscal year, up from 2.8 lakh units sold last year,” Tamagawa says.

Sony’s flagship brand Bravia accounts for nearly 30 per cent of the company’s revenue.

Korean chaebol Samsung India also is not far behind in the numbers game. It recently launched its new range of light emitting diode (LED) televisions. Perceived as the next generation of televisions, LEDs are being seen as the biggest growth engine for the company. Jung Soo Shin, Samsung President and CEO (South West Asia), observes that “LED sales are expected to notch up at least 10 per cent of the total flat panel volumes in India.” The new range of LED televisions are priced between Rs 1.25 lakh and Rs 3.5 lakh and are available in 40” and 46” screen sizes.

According to industry figures, Samsung rules the roost in the LCD segment, followed by Sony and LG.

Slim is in

It’s not just human beings who are striving to be thin. There is intense competition among manufacturers too for their televisions to be the slimmest of the lot.

Samsung’s LED and LCD ranges are vying for the top spot. At just over an inch thick (29.9 mm thickness), they claim to be the thinnest.

LG, which launched the Scarlet 2.0 series, also boasts a slim design, measuring 39.7 mm, while Sony India’s new range is also less than an inch thick.

This apart, a slew of features are also an added advantage.

According to Amitabh Tiwari, Business Group Marketing Head (Home Entertainment and B2B), LG Electronics India Pvt Ltd (LGEIL), “After the overwhelming response we received from Scarlet I which contributed a remarkable 20 per cent of the total flat panel display sales, LGEIL decided to revive the unique experience with an even more advanced product in terms of style and design.” Scarlet 2.0 is an advanced version of the Scarlet series which not only offers enhanced viewing experience but also promises to add to the glamour quotient of the living space. The new series has a much shorter response time of 2.4 milliseconds to view fast-moving images.

It is available in three sizes — 32”, 42” and 47” — with invisible speakers tuned especially for LG by acoustics guru Mark Levinson. Besides coming with Bluetooth compatibility, one can listen to TV with a wireless headset or view mobile phone photos and MP3 songs on TV.

Other special features include In-Plane Switching Panel Technology, which claims to offer unparalleled sharpness, faultless colour restoration and great viewing angles.

Japanese durables and electronics company Panasonic Corp, which recently consolidated its operations in India by bringing all its existing group companies under one entity — Panasonic India Pvt Ltd – too is on aggressive marketing drive.

It has roped in Bollywood heartthrob Ranbir Kapoor as its brand ambassador for its LCD, plasma and home theatre range.

“The consolidation is a part of our effort to drive up operational efficiencies and communicate to our customers the brand value of the company.

Our association with the Bollywood actor will be instrumental in communicating the trendy yet traditional image of our products particularly high-end products such as Viera LCD,” says Daizo Ito, Chief Executive, Panasonic India.

The price point is where the competition is intense. Prices start from Rs 16,000 for a 21-inch TV and go up to over Rs 1 lakh.

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