Nitish Nath , Head – Sales India ,Truvison Industries Pvt. Ltd.
“TV market has grown with the online forums there have been other challenges to cater to, which is cause for worry.”
With increasing digitization, the number of DTH users in India is expected to increase from 43 million in 2015 to 62 million by 2021. Backed by favorable government policies and increasing number of DTH users, the demand for televisions, especially smart TV, had a substantial increase in the past few years.
However, before we dwell into future it is vital to understand how the year 2016 and H1 2017 had been? The year 2016 saw a steady rise in edge lit LED TVs. The added benefit of the TVs is that they are extremely thin. The next year, launch of local dimming LED TVs with backlit control for better contrast and clarity was visible in the market. And then came the hybrid of both edge lit with local dimming which was one of the booming technologies in the market. Clearly, and the preferred bigger screen sizes that were the most striking trend. Also the bigger screen TVs were not just about size – they were offering slimmer versions along with better value proposition, allowing consumers to upgrade to larger screens. Not only were these TVs value-for-money but they also blended functionality and technology. Several updated technologies such as smart TVs sporting quad core processors and supporting latest video formats, ensured a fast and coherent user experience.
With the onset of 2017, a new facet to the TV technology was marked. There was an upward rise in the demand for OLED and 4K TVs. The 4K LED ultra HD TVs begun to dominate the market, not just on features but picture quality also became the key – as it promised four times the resolution of full HD TVs. Affordable and innovative solutions dominated the market, sharp drop in pricing made 4K TVs affordable for TV buyers looking for a significantly better viewing experience with four times higher screen resolution compared to HD TVs.
Though, the OLED market is expected to register a burgeoning growth in the future years but this growth is less likely to be sustained owing to the emergence of new upgraded technology in the market. Additionally, the online LED and OLED market is expected to grow at a CAGR
of 101.5 percent over the period
FY 2014–2019. Overall the year 2017, introduced a new facet to the TV market along with cut-throat competition not with respect to prices alone but with respect to considerable innovation too.
From the manufacturers perspective though the TV market has grown with the online forums there have been other challenges to cater to, which is cause for worry. Growing number of manufacturers have incurred heavy losses in the market. Additionally, LED manufacturers are still under immense pressure to further lower prices.
Even though manufacturers in the LED industry are being pressured to lower prices in the short term, in the long run there will be limited room for further LED price cuts.
Another major perspective affecting the LED industry currently would be GST – a game changer of every industry. Some key highlights from consumer durables industry include – uniformity in tax rates which shall ease the pressure faced by this industry. Consumer durables will be placed under the 28 percent tax slab. Though it is the highest tax slab, a majority of goods are currently taxed at 26–31 percent, depending on their nature and usage.
To summarize, it is a stiff competition with new brands entering the consumer electronics segment, though each brand can participate actively by showcasing its individuality with the technology, the service, and the price points offered.
The biggest opportunity is extended by the consumers who are adaptable to new technology and versatility offered by each brand. The lifestyle of a consumer has undergone changes with time; there is now willingness toward exploring a new technology or feature and living with the latest luxury in society.