Waiting to buy that slick LCD or plasma screen to adorn your living rooms but have restrained yourself so far because of the steep prices? Heave a sigh of relief and strike a deal this diwali.
As LCD TV prices have dropped by 30% this year to reach as low as Rs 30,000 for the entry level model- all major brands are gearing up to encash the growing consumer demand and ride on the price erosion factor.
LG is strengthening its dealer relationship besides offering attractive EMIs in order to penetrate deeper besides splurging as much as Rs 4.5 crore on the ad and communication for this category( their overall spend for the festive season) while Samsung is launching some new LCD models in the next week.
At present, the LCD and plasma TV market together is pegged at 2 lakh units but is expected to double by next year to 4 lakh units. Industry observers say by next Diwali, the LCD range will start from Rs 18,000, an unbelievable price for Indian consumers.
Even Indian players such as Onida are aggressively marketing their LCDs. The company is, infact, setting up its manufacturing unit to start production of LCDs in India.
Says Girish Rao, VP-sales & marketing, LG India, “The global price reduction is reflecting in the Indian market.” The category has witnessed more than 30% price drop in India since January.
LG is following a three pronged strategy to push the sales in this category, which entails launches of new models, realignment of prices along with focus on providing easy finance and covering the costs for the dealers due to flunctutaion of prices.
“We have devised a systematic way to deal with this problem and that has increased dealer participation in the recent past,” he adds.
Samsung is also banking on the LCD category in a big way as it targets sales of around 20,000 units in September-October. “Given that prices have shown a drop of around 30-35% this year ,we do not anticipate any further price drops,” says Ravinder Zutshi , deputy MD , Samsung India.
Onida, a late entrant in the category is pulling itself now to join the bandwagon alongside the Korean majors. Says Vivek Sharma, VP-marketing and sales, Onida,”We have got aggressive in this category only in the past six months but now the commitment will continue with the manufacturing unit coming up along with our other ongoing strategies.”
Onida currently has 3% market share but is targeting a 10% share by next year. The two Korean chabeols, LG and Samsung, between themselves occupy almost 80% of the market in the flat panel display market.