India's rising income and aspirations will drive out the smaller televisions soon from the market, and we are talking about 32 inches here which were once considered to be big enough for an Indian household that had perhaps just shifted to the LED TVs.
"A lot of people were in denial mode but there is a major market shift. 55 is the new 32 for TVs," said Avneet Singh Marwah, CEO at Super Plastronics Pvt Ltd, which is a brand licensee of five major global brands - Thomson, Kodak, Blaupunkt, Westinghouse and White-Westinghouse (trademark of Electrolux).
Yet, this potentially implies more than just consumers' increasing preference for viewing thrilling sports or dramatic productions on a bigger screen. While various indicators, spanning from lipstick sales to first date spending to men's underwear purchases, provide insights into a nation's economic status, we shouldn’t be surprised if a television indicator also exists. This TV indicator would depict images not only of the industry but also of India's economy, where consumers are willing to spe ..
Marwah said India is undergoing significant transformation and presently stands as one of the world's fastest-growing economies, coupled with its status as a highly traversed nation. India boasts a remarkable digital landscape, ranking among the top nations in terms of internet usage. This digital interconnectedness has facilitated the exchange of diverse global information, fostering substantial aspirations among its populace, he said.
Furthermore, as individuals make their initial purchases, a fundamental shift is occuring in consumer behavior. In any nation, once someone transitions from being a first-time buyer, the subsequent purchase inevitably gravitates towards an upgraded or improved version of the product. This phenomenon has already taken root in both semi-rural and urban markets, marking a significant development in our evolving economy.
"Entry-level cars Alto, Wagon R have moved to Baleno or even SUVs and this will continue happening," he said.
SUV buying share among first-time buyers in India has jumped four times over the past decade, driven by affordability and a wider selection from manufacturers.
Coming back to the TVs though, Blaunpunkt's 55 inches TV sale was triple of 32 inches TV sales last year. This was one of the biggest surprises for the manufacturer showing how quickly the markets have shifted, Marwah said.
Super Plastronics' 68%-71% TV sales are now skewed towards the one with at least 40 inches size. The highest selling size at the moment is 55, followed by 43, 50 and 65 inches TVs, Marwah said.
In fact, the sale of Blaupunkt's 55 and 65 inches TVs have seen an astounding 300% jump in sales over the last year.
"It is an exponential jump. We were out of inventories for about 20-25 days because nobody expected that kind of traffic. And this happened twice this year," Marwah added.
India remains one of the fastest growing economies and is shooting for the 3rd rank in global economy after becoming the fifth largest last year. Tales from India about its growing economic sinews are now not new. But, the Asian economy has now beaten almost all countries in terms of rising wealth. Remember India is home for some of the world's richest including Mukesh Ambani and Gautam Adani.
Also Read: Richer India bucks gloomy world trend as it loaded wealth when others lost
Delhi NCR is one of the most densely penetrated states for television in India after Goa where largest screen size is the most selling size right now, Super Plastronics’ Marwah said, adding that Tamil Nadu, Karnataka, Maharashtra, Gujarat are states where a decent amount of demand for large screens exist.
In eastern India, West Bengal, Odisha, Assam and Bihar too are rapidly shifting from 24 or 32 inches to 40 inches TVs.
The ease of accessing products in India has also dramatically improved due to the pervasive influence of digitalisation. This transformation is evident in the burgeoning e-commerce industry, the proliferation of various last-mile delivery services, and the widespread adoption of digital payment methods.
The growing preference for bigger screen sizes and improved tech is also pushing companies to spend more on manufacturing capacities, bolstering in a way the employment opportunities among other economic benefits.
Super Plastronics for example is itself investing Rs 7,000 crore to ramp up manufacturing capacities.
Most Indians are also adopting television brands beyond the typical or popular names such as Sony, LG or Samsung. This is also largely due to the proliferation of the brands such as Blaupunkt, Kodak or even Motorola on online platforms offering huge discounts to those looking for bargain deals.
Most Indians are also adopting television brands beyond the typical or popular names such as Sony, LG or Samsung. This is also largely due to the proliferation of the brands such as Blaupunkt, Kodak or even Motorola on online platforms offering huge discounts to those looking for bargain deals.
However, there is a discrepancy on this when it comes to which age group of people are buying the TVs.
Marwah said while consumers in the 22 to 40 age bracket are the biggest buyers of TVs that are not the conventionally popular brands, it is a challenge of the manufacturers to push brands beyond the the top 3 to those aged between 50 and 55 as they don't want to experiment.
"The new Gen Zs are our targets and millennials want to really experiment. They want to go for a bigger size," Marwah said.
The growing popularity of OTTs have also helped Marwah push the sales of TVs his company manufactures.
Source Name : Economic Times