Competitive intensity has increased among Indian brands of LED televisions with erstwhile mobile phone players like Intel and Micromax pitting themselves against stalwarts like Videocon in the segment.
“Intex has become the first player to dominate the LED television segment in volume terms, whereas Videocon is just marginally ahead of us in value terms. Our market share has been continuously increasing, while Videocon’s has been decreasing,” says Jayesh Parekh, Business Head, Consumer Durables, Intex.
Catering to the mass segment, Intex has sold six lakh televisions last year and is seeking a 5 per cent market share this year.
Micromax too, which entered the LED television segment about three years back, intends to become the top 5 brands in the segment with an aggressive online strategy.
But it be may a temporary moment of glory for such price warriors as they build their brands on volumes in the Indian market.
“The new price warriors are seeking short-term gains and these shares cannot be permanent.
“There has been a vacuum created with Videocon facing working capital constraints but it would be established Indian brands who will sustain in this competitive flat panel market.
“Onida has a brand legacy of 30 years and while price warriors like Intex will continue to play a role, it can never match our quality and brand legacy in televisions,’’ says Sunil Shankar, Business Head, LED Panels, Mirc Electronics, the makers of Onida televisions.
As for Videocon, it has been facing temporary hiccups in this manufacturing and supply chain and is not perturbed by its new competitors.
CM Singh, Advisor and former COO, Videocon Industries, said: “Companies like Intex are basically traders who continue to import from China primarily and it is for a temporary period that our shares have dipped due to supply-based issues.
“There has always been a huge gap between us and the nearest Indian brand of LED televisions and Videocon is by far the largest Indian LED television brand in the country.’’
Other Indian brands like Mitashi, which entered the LED television segment about a decade ago, is trying to build a premium brand in the LED television segment.
“Intex is trying to get share based on its disruptive pricing strategies in the mass market, but cannot beat us on quality.
“We have now dropped sourcing from China and are dependent on Indian companies like Dixon Technologies for our LED televisions,’’ says Rakesh Dugar, CMD, Mitashi.
While the Indian brands continue to compete with each other as well as Korean and Japanese MNCs, segments like flat panel televisions are on the verge of getting commoditized.
As industry veteran YV Verma, observes, “Flat panel televisions have become a commodity since everyone now has the same product and technology. Indian players need to build their brands and have distinguishing features to survive in this segment’’. – The Hindu Business Line