Consumer electronics major Philips India Ltd has projected a 22-25 per cent growth rate for its audio segment. According to ORG-GFK, the audio industry is pegged at Rs 1,000 crore and is currently de-growing at a rate of four per cent.
According to sources the company intend to reintroduce a line of products for which there will be a new TV campaign and consumer promotions. It plans to introduce four new models of its MP3 music systems by enhancing its base sound up to 6,000 W incorporating the `Woox' technology, pegged between Rs 16,000 and Rs 32,000.
Realising that competition is creeping up in this segment from the likes of Sony and Panasonic, the company is trying to retain its leadership position in this category (at 45 per cent) by introducing value-added features. It has positioned its MP3 players with the statement — `Philips MP3 Hi-Fi system, Generation ahead', created by HTA.
However, according to ORG-GFK, it is the VCD (versatile compact disc) segment, which is recording the highest growth rate at 400 per cent. Philips currently has 58 per cent market share for its VCD segment.
Besides, Philips is planning to introduce smaller pocket radios pegged in the range of Rs 200-300 and is expecting 15-20 per cent growth in this segment. The company intends taking on the Chinese brands in this segment with models priced in the same range. It has decided to tackle competition from the Chinese radios currently flooding the market with a new baseline - Kuch bhi nahin chalta, implying the lack of quality in the Chinese products.
Besides, Philips has also been upgrading its existing models of radios. In the recent past, it came up with a powerless radio, which works with a dynamo technology of winding-up screws instead of the usual lead batteries. Philips currently has a 55 per cent market share in radios as per ORG-GFK.
Apart from the Chinese audio makers, competition is looming from foreign players such as Thompson and LG, which have also entered this segment. In spite of the audio segment not registering any growth, Philips is expecting the festive season to boost the languishing audio industry.