The high rate of growth in the premium-end of the Indian consumer electronics market is not going unnoticed by global players who hitherto were not present in the country.
The Japanese electronics giant, Hitachi Home Electronics, is working on a strategy to capture a lion's share of the high-end colour television market in the country.
According to Mr Tadashi Nishiuchi, Managing Director, Hitachi Home Electronics Asia, Hitachi is present only in the super-premium CTVs market in India and is targeting a market share of 20 per cent in the premium CTV segment next year.
The company is currently importing CTV sets from Japan and is open to the possibility of assembling the CTV sets in India in future if the volumes justify so. "The high-end CTV market, consisting of plasma and LCDs, in India is seeing exponential growth. The market is expected at 7,500 units during the current fiscal year, up from 4,000 units last year. This is further expected to grow to 12,000 in the next year," Mr Nishiuchi said.
According to market analysts, not only are the margins better in the top-end of the market, it does not yet have the cut-throat competition seen in the middle-end.
Hitachi is seeking to create awareness for its brand by expanding on the retail front.
The company has opened 20 `experience zones' across all metro cities, which not only sell its products but also allow the consumer to experience the products.
"There is good demand for such products in India. The purchasing power certainly exists," Mr Nishiuchi said.In addition to individual customers, Hitachi is also aggressively targeting the institutional segment.
"There is a lot of new development happening in the country in the form of new airports, hotels, corporate offices, and so on which should help us expand sales. However, we expect around 60 per cent of the sales to come from the retail segment," Mr Nishiuchi said.
Hitachi has rolled out new products in the market, which includes a LCD range starting at Rs 2.5 lakh and a plasma CTV priced at Rs 6.95 lakh.