In the last two decades, the Indian television market has witnessed major changes with advances in technology. Only a few years back the conventional CRT (cathode ray tube) TV set experienced a switch from curve to flat CTVs, with flat panel displays ? Plasma and LCD — being a fairly nascent concept for the market. Now the market is going through another phase of transition and is moving to flat panel displays; with new concepts like LEDs, Smart and 3D TVs catching up.
Globally, the television market has moved from traditional CRT TV sets to FPD (Flat Panel Display) TV sets where LCD TVs are now expected to account for 90 percent of the global TV market by the end of 2012. The Indian market is trying to pull alongside. Though India is still among the very few countries consuming CRT TV sets (accounting for 40% of the global CRT TV consumption), the last couple of years has seen a movement away from CRT TVs. The flat panel market, comprising LCD and LED TV sets, now corners approximately 30% of the television market in India as opposed to just 1% in 2005.
LCD and LED TVs are becoming the first choice of consumers with the price gap narrowing between traditional CRT TV sets and flat panel TV sets. Flat panel displays which grew at an annual average of 102% during 2005-2011 are expected to overtake the CRT TV market in India by 2013. Within the LCD category, LED TV sets have been able to capture 25% of sales due to its design, high definition and less energy consumption. Also, with technology frequently changing, the replacement cycle of TV sets for urban consumers has reduced to 3-4 years which earlier used to be 9-12 years.
In the consumer electronics market where the concept of smartphones has caught up fast, TVs are not behind. The new generation consumer does not want just a quintessential TV set. He wants a television companion that aids him in a variety of tasks, schedules reminders, provides him a plethora of entertainment options, is a gaming console, and much more. 2011 saw the launch of Smart TVs in India. A Smart TV is mainly internet enabled multimedia television which allows its users to surf the net, chat, download content, run apps and play games. All the players in the market have introduced their versions of Smart TVs which are expected to drive growth for them.
The Samsung range of Smart TVs boasts of voice and motion control and they have introduced the concept of ?smart evolution? that claims to give you a new TV every year. LG has come out with the 3D Smart TV range that has the ability to convert conventional 2D videos to high-resolution 3D videos. LG’s ‘point-gesture-wheel? is one of the most advanced TV remotes in this segment. Panasonic Viera Smart TV, the official television of the London 2012 Olympics, gives you the option of using your smartphone or tablet as a remote control. Sony Bravia?s selling points are its great picture quality combined with X-reality engine, intelligent peak-LED and motion flow technology. Other players such as Videocon, Philips, Haier, Toshiba already have or are planning to launch Smart and 3D TVs. All these players are engaging in strong marketing campaigns and trying to connect with the pulse of the people, who then aspire to ?own? the brand. They have also partnered with popular events such as cricket and soccer World Cups, popular causes and are prominently involved in ?touch and feel? campaigns in mall kiosks and ?experience zones?.
At present, these products are priced between R 50,000 and R 3,00,000 and even beyond, but innovation and growing competition is expected to drive down prices. Price has been a sensitive issue for most manufacturers as 2012 has been a tough year due to rising costs. Increasing commodity prices and the falling rupee have made imports more expensive. In addition to this, the hike in excise duty in this year?s budget has added to the pressures. Along with prices, limited availability of 3D & HD channels, compatible apps and high speed internet connectivity is also a hurdle for these high-end TV sets.
In spite of these challenges, manufacturers are betting big on this product category. Manufacturers are entering into tie-ups with content developers to provide local content ranging from games, movies, social networking apps, music, etc., as going forward content would be the biggest differentiator. The coming years are expected to see the launch of next generation display panels such as OLEDs and ultra HD TVs. The hassle of wearing 3D glasses is also been taken care of with companies working towards manufacturing 3D enabled TVs that will not require special glasses to view 3D content.
With the Indian consumer becoming more discerning about picture quality, the LCD market is expected to account for 90% of the Indian television market by 2015, growing at an annual average of 35% over the coming years. The share of Smart and 3D TVs, though currently a niche category, is expected to double and account for 10-15% of the flat panel display market by 2013.
Suheil Murgai is associate director and Prerna Kumra is associate consultant at Ipsos Business Consulting (IBC)
This is the fourth part of a five-part series by Ipsos Business Consulting, the consulting division of global market research firm Ipsos in India, on changing trends in the consumer durables space
