Top Story

e4m_logo.png

Home >> Marketing >> Article

DVD player sales may top 5 m in next couple of years

21-July-2004
Font Size   16
DVD player sales may top 5 m in next couple of years

With increasing product awareness, coupled with a possible reduction in price, the market size for digital versatile disc (DVD) players in India is expected to grow to five million plus in the next few years from the current level of approximately one million. "The market for video compact disc (VCD) players and DVD players continues to be small at present, and because of the low base the growth rates are high," according to industry analysts.

"The growth potential for DVD players is tremendous, with the organised sector alone selling about 70,000 units per month," said a Consumer Electronics & TV Manufacturers Association (CETMA) official. Further, the prices of DVD players have come down considerably with almost 30 per cent plus comprising the tax element. "Hence, any reduction in taxes would further lower the prices," the official told Business Line.

As per an ICRA sectoral analysis, between the two categories the demand for VCD players is growing faster than DVD players, while worldwide, the opposite trend is true. Elaborating on the reason for this trend, ICRA feels that it is, "indicative of the price sensitive nature of the Indian market, and the unavailability of cheap DVD software (audio and film titles). However, the demand for DVD is likely to grow in the future with increasing product awareness and a possible price reduction of both media software and hardware."

In calendar year (CY) 2001, the total DVD player market size rose to 30,000 units, including 19,000 units in the organised sector and 11,000 units in the grey market. The size of the organised market for VCD players in India increased from 0.65 million units in CY 2001 to 4 million units in CY 2002. While the organised sector market increased from 0.3 million units in CY 2001 to 1.35 million in 2002, the sales in grey market increased from 0.35 million to 2.65 million units, ICRA revealed.

The major players in the organised sector offering stand-alone VCD players are Oscar, Videocon, T-Series, Beltek, Thomson, Bestavision, and Texla. A notable feature over the last two years was the entry of Chinese players through collaborations with Indian companies, ICRA said. The prices of stand-alone VCD players range from a low of Rs 2,000 to Rs 8,000. However, the prices offered in the grey market are even lower leading to its continued dominance, it said. In CY 2002, Oscar was leading the market with a share of 37 per cent, followed by Videocon with a market share of 18.5 per cent.

The major players in the organised DVD market are BPL, Samsung, LG, Philips, LG, Thomson and Onkyo. The brands available in grey market are Pioneer, Panasonic and Sony. In CY 2001, BPL emerged as the leader in the segment with the market share of 31.6 per cent followed by Samsung with a share of 23.7 per cent and Philips with 21 per cent market share, the ICRA report revealed.

Tags

Vijay Mansukhani, speaks to exchange4media about the resurgence of Onida, the scope of growth of consumer electronics market in India and the reasons why Indian consumer electronics brands don’t compete on a global scale

Projjol Banerjea opens up about hiring Anne Macdonald and GroupM's Rob Norman, and the brand's new identity

Meera Iyer tells exchange4media that in FY 2016/17, bigbasket clocked a revenue of Rs 1,400 crore. The online supermarket currently stands at 70,000 orders a day, with operations in 25 cities.

CMO, Kashyap Vadapalli on the start-up’s marketing play, why it has decided to stay away from IPL and response to its furniture rental apps

In terms of affiliates, India ranks on the top. Spurred by the fast growth of mobile users and hence internet users, there are millions of websites, apps, WAP-sites and blogs using affiliate marketing...

Insecurity in the workplace due to the idea of AI encroaching on your job, or being sidelined at work because of your small town background? Sandeep Goyal has the right answers to help you deal with w...

As National Sales Head at News18.com, Ashish aims to bring on board a maximum number of advertising partners and consolidate the network’s position as a leader in the space.