Audio majors in India including Sony, Philips, Samsung and LG Electronics are planning to hike their advertising budgets for audio systems including HiFi and home theatres by 15% to 20% to cash in on the upcoming festival season (August-October 2007). Interestingly, these companies are also tapping the festival season as an opportunity to launch innovative products.
Sony India, which leads the home theatres market with a share of 44% and the HiFi segment with a 46% share (according to ORG – March 2006), is planning to hike its advertising budget for its HiFi and home theatres by 18% for the upcoming festival season, over the previous corresponding period.
Tomonori Moroda, head – audio division, Sony India told FE, ?In the Indian audio systems marketplace, Sony is for the first time launching HiFi audio systems and home theaters which will be blue-tooth compatible.? Other new technological products from the company will include USB features, wireless surround and ultra small speakers. For the festival season, Sony will also offer consumers with a free installation (placement of speakers, wiring) service for home theatres. Sony India is all set to expand its dealer network to include its smaller brand stores – Digital Kiosks and Sony Shop ? from 250 to 350 for offering better customer experience
With the decline in demand for conventional analog audio systems, competitor, Philips India is in the process of launching new models of only digital HiFi and home theatres for the festival season. According to Gunjan Shrivastava, director – audio systems, Philips Electronics India, ?We are hiking ad budget for audio systems by about 5% to 10% apart from new consumer promotions where Philips? audio products will be offered with relevant price cuts.? It was in March 2007 that Philips India Ltd had launched 10 new models of portable and digital audio systems in India.
Korean major LG Electronics India too is gearing up to launch at least five new models in audio products with upgraded sound output, apart from consumer promotions during the festival season. Samsung India too is in the process of launching two to three new models in home theatres.
According to ORG, the audio market (including both Hi Fi and home theatres) was 3.60 lakh units in FY06. Industry experts believe that since the report only covers multibrand outlets, the numbers would be at least 5% more than this.