TV sales likely to decline due to West Asia war
Rising input costs and rupee depreciation adding woes to the highly competitive industry
image for illustrative purpose
New Delhi: The TV industry, which already faces soaring prices of memory chips (RAM), is bracing for a decline in sales, weighed down by rising cost of plastics to ocean freight on account of ongoing geopolitical tensions in West Asia.
Some manufacturers are also flagging concerns over a potential downtrading trend as buyers shift towards smaller screen sizes amid rising prices. Moreover, rupee depreciation has pushed up overall production costs, leading to higher television retail prices.
Larger brands have absorbed some cost pressure. Moreover, some companies have not passed on the entire cost increase, trying to maintain their market share in the Indian TV market considered to be highly competitive. Moreover, consumers are also delaying their purchases; however, some recovery is expected in the festive season in the second half of the year. When asked about growth, Super Plastronics Pvt Ltd (SPPL) Director and CEO Avneet Singh Marwah said it is very "difficult" as input costs are going up, he said, adding that the industry is already witnessing "signs of downtrading".
"There will be a shift in the purchase of TV screen sizes. If a consumer is looking to buy a 55-inch screen size television, they might opt for a 50-inch screen size model instead. Consumers who were considering a 65-inch screen size TV are now settling for a 55-inch screen size," noted Marwah, whose firm has brand license for TV brands such as Thomson, Kodak, Blaupunkt, among others.
In the last six months, TV prices have gone up drastically. An entry-level basic 32-inch screen size TV, which had come down to Rs 9,000/is now selling at Rs 11,000, said Singh.
Haier India President NS Satish said there are some early visible trends of downtrading, though attractive financing options are helping sustain demand for larger screen sizes.
