Manufacturers are expecting CTV sales to touch 10.5-11 million units in 2007 up by 15% compared to last year. Aggressive pricing, range enhancements. extended warranties, product related schemes and incentives are expected to boost hi-end sales, accounting for 20-30% of the total sales this world cup season.
“We expect more than 30% of CTV sales to come from the world cup. High definition TVs, LCDs, plasmas and bluray introductions are the new technology introductions for this year,” said P Tognatta, director sales, Samsung India.
While durable makers recently hiked prices of home appliances in the region of 2-3%, attributing it to input cost pressures CTV majors have put it on hold for moment. “CTV makers are looking at optimising sales during the worldcup season,” said an official from a Mumbai based TV manufacturer.
The growth in the LCD and plasma televisions is expected to double every year for the next couple of years driven by consumers who have dumped their conventional television sets in pursuit of clarity.
“The craze is now to watch the digital world through LCD screens,” says an official from LG India. Incidentally, globally too sales of conventional TVs are falling. From a sales of 152 million units in 2005, it is expected to sell just around 136 million units in 2006.
A factor pushing growth of LCD and plasma TVs is falling prices, which have fallen by 30-35% in the recent months. With the future growth coming from LCDs and plasma sales, durable makers are drawing up strategies to focus on these high value segments.
This year consumer durable companies have hiked marketing and advertising budgets for the cricket season. With very little differentiation in pricing and product characteristics, consumers make purchase decisions on freebies and incentives offered by a brand, company officials said. Durable majors are hoping that the various promotions and schemes will increase consumer spends in tier I and tier II markets.