The growth in India’s smart TV market has slowed in the October-December quarter owing to higher inventory in channels and weak demand post the festive season sale, according to analysts. The market is expected to grow at 8-9% YoY (year-on-year) during the quarter, compared to 38% YoY growth in July-September quarter.
Apart from higher inventory, inflationary pressure will also affect the retail demand which in a way would lead to a fall in shipments compared to the preceding quarter, the analysts said.
“Prior to festivals, companies usually increase the inventory dispatches to the dealers due to which Q4 (October-December) is generally slow. However, this time owing to higher inflation the growth will be in single digits,” said Anshika Jain, senior research analyst at Counterpoint. Jain believes that inflationary pressure will continue to affect the market in 2023.
In the July-September quarter, the growth in the smart TV shipments was largely driven by festive season supplies for meeting the demand, multiple new launches, discount events, and promotions, according to Counterpoint Research. Further, the share of Smart TVs in the overall shipments reached its highest ever 93% during the quarter.
From the pricing point of view, a traction in the sub-Rs 20,000 smart TVs will further increase the penetration of smart TVs in the overall television segment. The growth in the category is led by non-smart TV users which are upgrading their television experience, according to experts.
The smart TV market continues to see strong performance from both non-chinese as well as chinese brands, whereas Indian brands like BPL, Adsun, Onida, Sazio, among others are also trying to replicate the success of their global counterparts, analysts said.
“Global brands lead the market with a 40% share (in July-September), followed by Chinese brands with a 38% share. The share of Indian brands doubled in Q3 2022 to reach 22% of the overall shipments. Many new Indian brands are entering the highly competitive market,” said Akash Jatwala, research analysts at Counterpoint.
Individually, Xiaomi (which includes Redmi’s share) continued to lead the smart TV market in the July-September quarter with an 11% market share, followed by Samsung at 10% share and LG at 9% share. Amongst all the brands, the shipments of OnePlus grew 89% in the quarter. The company has a market share of 8.5% in smart TV shipments.
Apart from OnePlus, brands like TCL and Vu were also the fastest growing brands in the July-September quarter.
From the design perspective, the research report shows that the share of smaller size TVs is increasing. The smart TVs with displays of 32-42 inches constituted approximately half of the total shipments during the quarter. While consumers continue to prefer TVs with LED displays, advanced technology displays such as OLED (organic light-emitting diode) and QLED (quantum light-emitting diode) are also gaining traction.