Flat TV sales set to soar in small cities: Experts

Written by Neha Pal | Neha Pal | New Delhi | Updated: Apr 15 2011, 07:30am hrs
The appetite for flat panel televisions (FPTVs) is expected to go up exponentially in tier II and III cities in 2011 on the back of attractive pricing, increased awareness level, rising discretionary income and availability. According to major players like LG, Samsung and Panasonic, fiscal 2010-11 has been a phenomenal year as they witnessed a 80-100% increase in the sales of FPTVs while small players like Haier has seen a growth of over 200%. Many players have also said the companies have progressively increased presence in these cities and are planning to ramp up production capacity of flat panel televisions due to increase in demand.

According to experts, 19 and 22 inch TVs are doing very well in tier II and III cities. The smaller screen size LCDs are affordable for people who are first time buyers and they are quite affordable also as they fall in the range of R15,000 to Rs 19,000.

According to LG Electronics, There has been an 80% increase in the sales of FPTVs compared to last year. We are getting a very good response from tier II and III cities as far as our products are concerned, said Soon Kwon, managing director of LG Electronics India.

According to Soon, one of the main reasons for the increase in sales of FPTVs in tier II and III cities is high income, availability of products, attractive pricing and increased awareness level. Kwon said that LG is also planning to scale up its production capacity for FPTVs and has also rolled out 'Smart TVs' which has an integrated multimedia device that offers not only broadcasted content but also video on demand, web browsing and applications through the Internet.