NEW DELHI, February 14: Colour television manufacturers -- domestic as well as multinational -- are gearing up to breach all price barriers this year.Prices are expected to tumble to all-time lows within all segments of screen sizes, but more so in the 20-inch and 21-inch categories as companies announce price cuts while introducing "economy" models targeted at the semi-urban consumers.
It is widely believed that Videocon would be the first to breach the Rs 12,000 barrier in the 21-inch segment with a model priced at Rs 11,600.
Prices had started heading southwards last year when domestic companies -- Crown and Salora -- in a bid to survive in the fiercely competitive market, wooed customers with 20-inch models at prices below Rs 10,000. Texla has also launched a model priced under Rs 10,000, while Onida is selling a 20-inch set for little under 12,000.
This year, BPL joined the low-priced televisions bandwagon with a 20-inch model for Rs 12,500.
Korean multinationals, known for their aggressivepricing the world over, recently launched economy models in an attempt to increase the market base for their brands, increase penetration level for the gadget in the country and tap the semi-urban market. In contrast, Japanese manufacturers -- Sony and Panasonic -- have slashed prices of the televisions to push demand during the last few weeks.
Panasonic had recently increased the dealer's margin on the televisions as a means to pass on increase in sales of its televisions. The company intends to launch low-priced models in 20-inch and 21-inch segments in June, National Panasonic associate director Rakesh Tandan said. The televisions would be an extension of the Sophia range, which was unveiled in India last year, and is expected to be priced between Rs 13,000 and Rs 14,000. Sony has been offering almost Rs 3,000 off on its televisions for the last few weeks. The company will be launching lower priced models around June in the 21-inch segment, targeted at semi-urban and rural markets.
Currently, Sony isworking out its strategy, but prices would be region of Rs 15,000-16,000. The company intends to position itself as a premium brand in the low-priced segment, Sony executives said. Samsung Electronics, which had a headstart over rival LG in making inroads into the country, has introduced two 20-inch models -- a single-speaker model for Rs 13,500 and a dual-speaker set for Rs 14,900. The company has also finalised plans to introduce two 14-inch models to be priced at around Rs 10,000 in the next few weeks. In addition, Samsung has a 29-inch television model priced at Rs 34,000.
LG Electronics has adopted a more aggressive stand than its rival Samsung. The company has launched a model each in 14-inch, 20-inch and 29-inch screen sizes last month. The 20-inch model has been priced at Rs 13,500, while the 29-inch one costs Rs 37,500.
The company plans to expand the portfolio of low-priced models during the course of the year. Says LG vice president of sales and marketing Rajeev Karwal, ``We intend to breachthe Rs 12,000 barrier in the 20-inch market during the next few months. By the year end, we plan to breach the Rs 11,000 barrier.'' In the 25-inch and 29-inch screen sizes too, the company has finalised plans to reduce prices substantially. ``We intend to introduce low-priced 25-inch televisions by the middle of the year and in the 29-inch segment, we plan to bring down prices to Rs 30,000.''
The companies have brought down prices of televisions by clipping off the frills they normally give with higher priced sets such as on-off timer and full-featured remote control. The televisions would also have single speakers and lower sound output. The manufacturers insist that they are not compromising on quality.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
