With the flat television (FTV) market growing at an estimated compounded annual rate of about 300 per cent, LG Electronics India will be expanding production of FTVs by 150 per cent. LG manufactured about four lakh FTVs in 2003 and expects to make about one million units in 2004.
“Production of conventional televisions will come down, but only negligibly, since it will still contribute about 55 per cent to overall colour television (CTV) sales. However, we plan to ramp up FTV production considerably,” Anil Arora, head-marketing, LG India, told FE.
He added, “About 70-80 per cent of the Chinese television market is dominated by FTVs. The scenario in India is changing too. However, since the rural markets are still dominated by curved screen televisions, we will reduce production of our conventional televisions only negligibly.” The company sold 16 lakh CTVs (including flat) in 2003 and targets sales of 25 lakh in 2004.
While LG was the FTV market leader for a single month in October 2003 (ORG-GfK retail audit figures), Samsung grabbed back the top slot in flat colour television sales in November with a market share of 23.3 per cent. In November, LG had a share of 21.6 per cent.
Ravi Zutshi, director-sales, Samsung India, said, “We are seeking to develop the market for flat panel TVs in India and expect to take an early lead in this product segment.”
Also, for the first time, LG toppled Whirlpool to become the market leader in November 2003 in the overall refrigerator category with a market share of 22.8 per cent as opposed to Whirlpool’s 21.9 per cent.