Indian LED TV (LED backlight LCD TV) market is now bracing for a price war as global players and domestic makers have launched less pricier TV sets to secure market share in the Rs 22,000 crore (around US$ 3.4 billion) sector.
The big three – LG, Samsung and Sony – have already felt the pressure from price-cutting rivals in India and thus cut TV prices by up to 15%.
According to Indian daily newspaper
The Economic Times, smaller brands such as Sansui, Micromax, TCL, Intex and BPL are selling their LED TVs at prices that are at least Rs 2,000 to Rs 10,000 (US$ 31 to 154) lower than their global competitors.
Their pricing strategies work as more and more consumers are attracted by these affordable alternatives. As prices of large-screen TVs drop and the lure of shiny new technology is hard to resist, consumers now replace their TVs every four to five years. Although LG, Samsung and Sony together take up about 80% of the LED TV market in India, others are now increasingly catching up.
In fact, global LED TV market has not seen a price drop, but sales of the three dominant brands in India have started to fall with domestic brands continue to enter the market and put pressure on prices, the report stated.
The price competition is across the board, but the 32-42 inch TV displays are at the center. These TV models account for over 55% of the market. Samsung and Sony said they have not cut prices in the 32-inch segment. The reason why prices of some larger screen models dropped is because they are reaching end-of-life. LG India explained that the price drop is to “drive sellout velocity and gain market share”.
Currently, there are at least 25 brands competing in the market and many more are poised to enter. As affordability becomes the dominant factor for consumers when buying LED TVs, price wars in India seem inevitable, resembling the trend in the smartphone market.
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