If the LCD TV success story has a sequel, this is it. Having seen excellent consumer response- LCD TV volumes trebled this year, compared with last year, the category is expected to continue its good run next year.
As consumer durable majors expect worldwide LCD TV sales to grow by 300 per cent over the next two years, the domestic market, that has moved in sync with the global trends so far, is expected to grow further.
"We expect worldwide LCD sales to grow in contribution from around 5 per cent of total colour TV sales as of year 2004 to around 19 per cent of worldwide sales by year 2007," said S H Lee, general manager- audio video products, Samsung India.
The global colour television industry is estimated to grow from around 166 million to 186.23 million units over the next two years.
With LCD panel— an important and expensive component— prices falling across the globe, LCD TV prices have also been following the southward trend. LCD TV being imported as completely built units, the 25-30 per cent price erosions have boosted TV sales in the domestic market.
The 30,000 units flat panel market- plasma display panel and LCD TVs combined- is projected to grow to become a 1,00,000 units market next year.
The year also saw consumers increasingly opting for higher-end products and in the LCD TV category, the 26-inch and above LCD TV sales' contribution to total LCD TV sales grew from 31 per cent last year to 47 per cent this year.
Consumer durable major LG has begun assembling 20-inch LCD TVs at its Pune plant and is currently test marketing it.
Depending on its performance, the company could start assembling another model in the first quarter of 2006 and one more in the second quarter, said Prasanna Raghavan, head, new display products, LG India.
Growing competitiveness could mean a 20-inch LCD TV would cost about Rs 30,000 by the end of the first quarter of 2006, down from the current Rs 37,000- 40,000, he added.
Having enhanced its LCD TV range in India this year, Samsung is expecting LCD TV sales, which currently constitute less than one per cent of total TV sales, to make up 4 per cent of total TV sales next year.
It is going to expand the penetration of its high-end display products to cities beyond the metros, focus its marketing activities on these products and bring in new models and variants.
"We will add new value to our expanded product lineup with our technology and design leadership," said Lee.