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As televisions sets get bigger with 4K UHD technology, so does competition.
Domestic consumer durables player Videocon has decided to drop prices for its its 55-inch 4K Ultra HD television by ₹20,000, from ₹89,990 to ₹69,990. This after Chinese electronics firm LeEco did a flash online sale on Tuesday for its 4K LeTV Super 3 series starting at ₹59,790.
“We are ready to counter a Chinese player like LeEco and cannot have it walk away with its attractive pricing strategy. Realising the threat, we have already taken a call to drop prices by ₹20,000 for our 55-inch 4K television sets,” said CM Singh, COO, Videocon Industries, adding that the company expects to sell 75,000 units during the forthcoming festival season.
Beijing-based LeEco, which has been present in India for less than a year, has had flash sales for products including smartphones.
Its latest online flash sale, for its 55-inch 4K Ultra HD, lasted just about three minutes, within which time it bagged orders for 4,600 units and was stocked out for the day.
Disruptive pricing Atul Jain, COO, Smart Electronics, LeEco India said: “We are into breakthrough technology and disruptive pricing in India, and will be focussing on the 55-inch and 65-inch 4K UHD segment with our own content through tie-ups with Eros Movies and Yup TV.” LeEco is also offering 333 dedicated service centres across India and 24/7 customer support with a toll-free number.
New rivals Videocon, which was the first Indian brand to enter the 4K ultra HD smart TV category in 2014, has had to compete with MNCs like LG and Samsung in the segment with its value-for-money pricing. But now it also has to contend with Chinese players like LeEco.
“We are ready to compete with Chinese players now. But Indians trust Indian brands and not Chinese brands, which have yet to get tested here. Besides, we offer a three-year warranty unlike LeEco, which is giving a year’s warranty. And its attractive pricing comes with riders,” added Singh.
Besides, Videocon’s extensive distribution network through offline stores gives it a definite edge over LeEco’s limited online sales presence.
“Consumers prefer the touch and feel of high-end products like 4K UHD televisions. Giving a crazy one-day flash sale of a single product can never help LeEco in reaching a leadership position since the online segment comprises just about 10 per cent of sales in the consumer durables category,” added Singh.
Meanwhile, LG, Sansui and Vu Televisions, already present in the 4K HD segment, are not too perturbed by the sudden pricing disruption in the still nascent and miniscule segment, which sees sales of about 6,000 units a month.
Long-term players “We are not into the pricing game, as 4K televisions have to be expensive due to the high quality of their features. We will continue to sell our 55-inch 4K televisions at ₹1,20,000,” said Sanjay Chitkara, Head, Corporate Marketing, LG Electronics.
Others — like Vu Televisions, which sells a majority of its televisions online — claim not to be impacted by the flash sale prices.
“We are not tactical flash players but long-term players in 4K UHD televisions, where new companies like LeEco cannot make a dent,” said Devita Saraf, founder & CEO, Vu Televisions.
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