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In a sign of rapidly changing consumer preferences, Vu Technologies, a manufacturer of flat panel smart televisions, has posted a 150 per cent growth in sales over the past year through its tie-up with online retailer Flipkart, according to a company release.
The company, which launched seven new smart TV models ranging from ₹11,000 to ₹1,20,000 at CES 2016 in Las Vegas, is aiming to capture 10 per cent of the Indian TV market over the next three years with e-commerce as the cornerstone of its marketing strategy.
The newly launched products include affordable offerings in the company’s Play series as well as high-end television sets from its Iconium series that offer 4K Ultra HD resolution. All the devices provide a smart TV experience powered by the Android OS.
With online shopping gaining increasing acceptance among Indian consumers, even big-ticket purchases such as televisions are moving online. “It’s amazing how many customers have bought TVs costing above ₹1 lakh by reading customer reviews or watching product videos. Consumer habits are changing, and convenience is most important,” said Devita Saraf, CEO and Design Head of Vu Technologies.
The company also sells its products at physical retail outlets but, according to Saraf, the lower cost of online distribution allows the company to pass on huge savings to its customers. “We get a lot of customer walk-ins [at our retail outlets], but mall rentals are very high and increasing and customers save money buying online,” she added.
Vu is a relative upstart in the television industry, having begun operations about a decade ago. The Indian market is currently dominated by the three big players from East Asia – Sony, Samsung and LG, which have a combined market share in excess of 60 per cent.
“The success of Vu is a testament to how new-age, home-grown brands can edge out traditional players by adopting the online strategy,” said Amit Bansal, Head of the Home Entertainment and Large Appliances division at Flipkart. He estimates the e-commerce platform’s television category to grow by 3.5 times over the coming year.
The writer is in Las Vegas at the invitation of Lenovo India
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