Chinese tech major LeEco looks to firm up presence in large-screen TVs

Chinese tech major LeEco is looking at a firm footing in the large screen – 50 inches and above – television set market in the country.

According to Atul Jain, Chief Operating Officer — Smart Electronics Business, LeEco India, the idea is to create a “disruption” — firstly through “pricing” in order to overcome the affordability barrier. And then, through the company’s content ecosystem.

LeEco entered the TV market almost a month back.

“We intend at disrupting the TV space. The large screen segment has been growing at 50 per cent per annum,” he told BusinessLine in an interview.

The target for the tech company is to be the number one online player by December (it currently sells through Flipkart and its own website); and break into the top three (with a presence through off-line stores) by 2018.

“There is pent-up demand for conversion and upgrade to larger screen TVs; but price has come in as the barrier. We benchmark ourselves against international majors,” Jain added. The market for high-end TVs are dominated by the likes of Sony, Samsung and LG. Price points vary upwards of ₹52,000 for 40 inch screens, while 55 inches and above are priced upwards of ₹1 lakh.

LeEco’s attempt at present is to break this price barrier. For example, its three offerings (currently imported) — a 55 inch and two 65 inch ones — are priced between ₹59,000 and ₹1.5 lakh; far lesser than international competition.

Although the Indian market is so far dominated by TV sets which are below 32 inches, the Chinese major will look to standardise offerings around the 40-inch size (and upwards) category in the coming days. “We will not go below 40 inch, and offerings will be premium. That is the strategy,” he maintained.

Interestingly, the company already flaunts some enviable numbers. Against the average demand stands at 10,000-odd TV sets (high end) a month, LeEco’s first month numbers stand at 5,000 (almost half the market demand).

The company’s long-term strategy is to integrate content with hardware. This has been the strategy in its home market or in Hong Kong where purchasing a TV comes clubbed with discounted or even free subscriptions to its video streaming service. Such services include movies, TV series and so on.

“In the next six to nine months, we expect to come up with India-specific content,” Jain said.

As of now, it has partnered with entertainment content providers such as Eros Now, Yupptv and Hungama, allowing buyers to stream a plethora of films, TV channels and songs on their TV or smartphone.

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