After establishing a firm position in the smartphone market of India, Chinese phone makers Xiaomi and OnePlus have expanded to the smart television giving companies like Lloyd a run for money.
After establishing a firm position in the smartphone market of India, Chinese phone makers Xiaomi and OnePlus have expanded to the smart television giving companies like Lloyd a run for the money. Not only are these companies redefining the prices of the sector, but also heating up competition for other players thus draining them of already thin margins, a Prabhudas Lilladher report said on Monday. In fact, Xiaomi, which is also one of the four market leaders in the smartphone category, is also enjoying most of the smart LED TVs market by offering latest features at the most competitive prices, the report added. Xiaomi enjoys 39% of the smart television market and has already sold over 20 lakh MI smart LED TVs units in its two-year run in India.
A major shift in consumer preference has helped smartphone makers to capture most of the market. While consumers commitment to their TV sets was for 8-10 years earlier, today consumers are looking for technology such as direct connection to the internet, support to run apps and compatibility with streaming or over-the-top (OTT) media services. With better purchasing power, availability of cheaper broadband, the popularity of streaming services and declining price gap between smart and conventional sets, the market has been rife for smart TVs and the likes of Xiaomi have sensed the market nerve. “TV has emerged as a natural extension for these brands as they aim to grab the maximum share of the user’s viewing time,” the report said.
The situation looks even worse for Lloyd which is not only fighting new entrants but established global brands like Samsung, LG, Sony, Panasonic & Hitachi. “These MNCs have deep pockets to invest in R&D and technology development, branding, distribution and marketing, which Lloyd will find it hard to match,” the report said. Meanwhile, the smart television prices have halved in the course of 12 months and the ongoing e-commerce sales on platforms like Amazon, Flipkart and Snapdeal is also causing a reduction in TV prices.