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DVD player sales may top 5 m in next couple of years

21-July-2004
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DVD player sales may top 5 m in next couple of years

With increasing product awareness, coupled with a possible reduction in price, the market size for digital versatile disc (DVD) players in India is expected to grow to five million plus in the next few years from the current level of approximately one million. "The market for video compact disc (VCD) players and DVD players continues to be small at present, and because of the low base the growth rates are high," according to industry analysts.

"The growth potential for DVD players is tremendous, with the organised sector alone selling about 70,000 units per month," said a Consumer Electronics & TV Manufacturers Association (CETMA) official. Further, the prices of DVD players have come down considerably with almost 30 per cent plus comprising the tax element. "Hence, any reduction in taxes would further lower the prices," the official told Business Line.

As per an ICRA sectoral analysis, between the two categories the demand for VCD players is growing faster than DVD players, while worldwide, the opposite trend is true. Elaborating on the reason for this trend, ICRA feels that it is, "indicative of the price sensitive nature of the Indian market, and the unavailability of cheap DVD software (audio and film titles). However, the demand for DVD is likely to grow in the future with increasing product awareness and a possible price reduction of both media software and hardware."

In calendar year (CY) 2001, the total DVD player market size rose to 30,000 units, including 19,000 units in the organised sector and 11,000 units in the grey market. The size of the organised market for VCD players in India increased from 0.65 million units in CY 2001 to 4 million units in CY 2002. While the organised sector market increased from 0.3 million units in CY 2001 to 1.35 million in 2002, the sales in grey market increased from 0.35 million to 2.65 million units, ICRA revealed.

The major players in the organised sector offering stand-alone VCD players are Oscar, Videocon, T-Series, Beltek, Thomson, Bestavision, and Texla. A notable feature over the last two years was the entry of Chinese players through collaborations with Indian companies, ICRA said. The prices of stand-alone VCD players range from a low of Rs 2,000 to Rs 8,000. However, the prices offered in the grey market are even lower leading to its continued dominance, it said. In CY 2002, Oscar was leading the market with a share of 37 per cent, followed by Videocon with a market share of 18.5 per cent.

The major players in the organised DVD market are BPL, Samsung, LG, Philips, LG, Thomson and Onkyo. The brands available in grey market are Pioneer, Panasonic and Sony. In CY 2001, BPL emerged as the leader in the segment with the market share of 31.6 per cent followed by Samsung with a share of 23.7 per cent and Philips with 21 per cent market share, the ICRA report revealed.

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