Prices of large-screen smart televisions are set to crash by up to 10% from next month with two big brands –OnePlus
and Motorola – foraying into the segment through online sales and rivals preparing to cut prices to take on the increased competition amid flat sales for last three quarters, three senior industry executives said.
Industry executives said after Xiaomi’s entry last year triggered a price correction in small screen TVs of up to 42 inches in screen size, theOne-PlusTVwill drive a similar price drop in the 50-inch and above sizes.
Avneet Singh Marwah, CEO of Super Plastronics, the licensee ofKodak and Thomson television brands, said TV prices will be the lowest ever this festive season due to unprecedented competition and poor sales in the last few quarters.
Kodak, Thomson and BPL, among other brands, indicated prices will drop by 5-10% during the festive season, primarily in the 50-inches and above screen sizes. The 32 and 42 inches are already selling at the lowest prices with wafer thin margin; hence, the scope of a further drop is limited, said BPL India’s chief operating officer Manmohan Ganesh.
OnePlusTVonAmazon and MotorolaTVon Flipkart will go on sale in the last week of next month when the two e-commerce biggies undertake the biggest festive sale of the year, executives said.
While the details are yet to be unveiled, executives saidOnePlus is likely to launch a 55-inch premium 4KTV model at 20-30% lower cost than market leader Samsung, while Motorola will have models across screen sizes.
OnePlus India’s general manager Vikas Agarwal said there is huge opportunity for the brand since it’s a highly underserved market.
“OnePlusTVwill be a premium product and priced competitively,” he said. Motorola did not respond to queries on the TV foray, while Flipkart declined to comment. Panasonic India CEO Manish Sharma said prices of online-exclusive TV models will remain competitive.
“However, rupee is depreciating and hence, much of drop is not anticipated,” he said. However, Ganesh and Marwah said there is a drop in global TV panel prices, which has offset the effect of rupee depreciation.
In fact, industry executives said Samsung, Sony and LG are likely to follow suit in the competitive market. PulkitBaid, director, GreatEasternRetail, said most brands are likely to indulge in discounts during the festive season whereby TV prices could drop by 10-15% in 43-inches and above screen sizes.
As per data from sales trackerGfKIndia, television sales were flat in January to June as compared to same period last year, despite the cricket world cup, which traditionally used to drive sales. Even in online, television sales growth rate had more same period last year. Adage India