World Cup to gift consumer electronics 20% growth

World Cup to gift consumer electronics 20% growth

Author | Source: The Economic Times | Thursday, Jan 04,2007 8:25 AM

World Cup to gift consumer electronics 20% growth

The consumer electronics industry expects to witness a 20% growth in television sales in calendar 2007. If this happens, it will be a significant increase over the 12% growth in TV sales the industry saw in 2006.

The prime driver for this 8% additional increase, is, of course, the Cricket World Cup 2007. “With the World Cup around the corner, television sales are expected to surge significantly. All big players are ramping up their capacities to meet additional demand. We are expecting a growth of 20% in television sales in 2007,” Consumer Electronics & TV Manufacturers Association (Cetma) secretary Suresh Khanna told ET.

According to LG Electronics VP Girish V Rao, the company is hoping for a 30%-plus growth in its TV business. “Right now, our industry contribution is about 6% in year 2007. We expect it to go up to anything between 8 and 10%,” he said. The consumer electronics industry, in fact, feels that high-end LCD and plasma TVs will contribute significantly to the growth of television sales in India. “As against 1.5 lakh sales of LCDs and 50,000 plasma TVs in 2006, the industry has kept a target of 100% growth in LCDs and 70% growth in the plasma category in 2007,” said the CETMA chief.

Mr Rao, however, feels that the growth in the LCD and plasma segment in 2007 will be even higher than Cetma estimates. He added that while high-end new models were expected to drive sales growth in the 29-inch TV segment, the plasma and LCD category in the Rs 30,000-Rs 80,000 price bracket, would grow by around two to two-and-a-half times. “In 2006, we sold around 1 lakh plasma and LCD TVs, this year; we expect the number to go up to 2-2.5 lakh,” said Mr Rao.

Flat televisions, too, will contribute largely to this growth. “A de-growth in the curved television segment is expected in 2007. Flat televisions are expected to emerge as a clear leader in the mass market segment,” said a senior official at Samsung. Incidentally, Samsung is hoping to achieve a 70-75% growth in the flat television segment this year. “We have also planned a slew of launches this year. Within the first half, we will be launching ultra-slim TVs, which are 40% slimmer than our slim-fit line of TVs. We are also planning to come up with new LCD models in the first half,” the official added.

Videocon, one of the largest consumer electronics players in the country, is expecting to sell 15 lakh televisions in 2007-08. “The 29-inch flat TVs will contribute 60% to our growth in the next fiscal as against 40% in the current fiscal. LCDs and plasma TVs will also witness a major growth,” said Videocon's product group sales head (south and east region) Sachin Annafture.

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