There has been a sharp increase in TV panel prices in August 2016. Prices for 32-, 40/43-, and 50-inch TV panels have increased by USD 2, USD 2–3, and USD 1 respectively. Samsung Display’s plan to shut down a 7G TFT-LCD factory will result in decreased supply of 40/43-inch TV panels too. Innolux and AUO expect their TV panel capacities to be booked up until 2017 and, therefore, cannot guarantee sufficient supplies. In addition, Samsung Display has faced relatively low yields for 55-inch Ultra HD TV panels due to adoption of thin glass substrates and new manufacturing processes. With the upcoming festive season, this is causing great anxiety for television makers in India. 

Additional uncertainty is expected, as in response to the panel prices increase, South Korean TV vendors, along with several first-tier brands, have adjusted their panel purchasing strategies. They are seeking guaranteed supply of panels regardless of cost in order to maintain high capacity-utilization rates at their assembly plants and ensure the availability of products on retailers’ shelves. Their approach could cause changes to earlier price or volume agreements that have been made with panel suppliers. During this period of panel shortage, TV brands with associated panel suppliers belonging to the same group companies will have an advantage. Other first-tier vendors, by contrast, will be in a very challenging situation later this year because they usually cut prices to boost sales during the peak season. 

On the other hand, developments at home are promising a busy season. With the Seventh Pay Commission pay award for central government employees and pensioners and expectation of a good monsoon, more funds are available with the consumer. With Rio Olympics 2016 already underway and Independence Day celebrations in the offing, the excitement at the retail counters has begun. 

Home appliances and air conditioners might just be the ones to benefit at the cost of television sales this season! 

The passage of the GST bill promises a unified Indian market. A majority of consumer companies, which are looking to rationalize their supply chain cost will benefit, for it will ease the movement of goods across states, encourage business expansion, and facilitate easy procurement.

 

 

 


From the Editor's Desk

From the Editor's Desk

Anju Arora

Anju Arora is the founder and managing director of ADI Media Private Limited, a business-to-business (B2B) information provider. ADI Media’s B2B products include Communications Today, Medical Buyer, TV Veopar Journal, and Broadcast & CableSat

She is an Economics Honors graduate from Lady Shri Ram College, New Delhi and PGDP from Indian Institute of Foreign Trade. She has also participated in the OPM Key Executives Program at Harvard Business School.

Anju Arora is also the co-founder and executive director on the Board of ADI BPO Services Limited, the majority shareholder in MPS Limited, listed on all the major India stock exchanges and a Macmillan company till 2011.

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