Call it the price drop effect or rising aspiration levels. India?s television industry is evolving and LCD TVs have witnessed a phenomenal growth rate of 264% during January-December 2007, thanks to around 30% dip in prices last year and the sheer availability of the whole range of sizes in the segment.
In 2007, the average selling price of LCDs came down from Rs 75,000 to Rs 55,000, a dip of 26.67%. This has resulted in a robust 263.8% growth in the LCD segment followed by a 31% growth in plasma televisions and 30% growth in flat televisions. There was a dip of 17% in the traditional curve television category.
Industry estimates show that the LCD segment constitutes a huge chunk of the total industry. Of the estimated 4,00,000 units sold in 2007, over 90% or 3,75,000 units were LCDs and the rest were plasma televisions. 2008 is expected to see over 129% growth in the LCD segment at 8,60,000 units out of the total 9,00,000 units to be sold during this year.
?Primarily, it is a significant drop in prices of LCDs that has boosted the overall sales of the segment. But factors like growing awareness about the benefits of this technology and rising aspiration levels of the Indian consumers also fuelled the growth of the segment,? says R Zutshi, deputy managing director, Samsung Electronic India. The company, which has a market share of 41.9% in the category, says that out of the entire range of LCDs, the 32-inch screen size category is the fastest growing segment.
According to an industry expert, the sheer availability of LCD televisions at all prices and sizes has also led to the growth of the segment. Currently, LCD TVs in India are available in sizes starting from 19-inches and going up to 70-inches. Also, the prices vary from anything between Rs 20,000 to Rs 24 lakh.
No wonder, the electronic majors are mulling to come up with several new models in the category along with upgradation of technology in the existing models to continuously woo customers.