Sales of televisions above 32-inch screen size has grown by 10% in offline market and 90% in online during January to April of this year as compared to same period of 2018 with consumers upgrading from small to mid-and-large screen, as per a latest study by market researcher GfK India. The researcher expects this trend will be further fuelled with manufacturers rolling out promotions for the cricket world cup and consumers showing a clear preference to buy larger screen with increasing affordability.
This year, overall offline channel sales for flat panel television has been declining due to shrinking market for less than 29-inch screen size leading to structural shift in the TV market. This shift has led to an increase in sales of smart television and ultra-high definition television in 2019. Smart TV has registered 38% growth in offline and 164% in online channel whereas ultra-high definition TV has grown 85% in offline and 116% in online channel between January to April as compared to same period last year, GfK reported.
Nikhil Mathur, managing director – India, at GfK said sporting events globally have been one of the major triggers for boosting demand and consumption across products and services.
“In a cricket frenzy country like India, world cup season has been a key growth driver for television market. When compared with last two seasons of world cup, TV market grew three times in 2011 and two times in 2015 of the annual average growth respectively. Sales volume indicate that game watching experience triggers the buying decisions of consumers,” said Mathur.
According to GfK, online contribution for television sales in last three years have increased by 10 percentage points year-on-year since 2017. While e-commerce accounted for 10% of total TV sales in 2017, it became 20% in 2018 and touched 30% between January to April of this year. Average selling price for TV in the online channel is Rs 21,100 as compared to Rs 25,000 for offline channel. For 43-inch and above television TV screen size, average selling price in online channel is Rs 41,000 as compared to Rs 78,000 for offline channel.
“Structural shift in panel TV market emphasizes the increasing relevance of India’s digital economy and rise in emerging middle-class consumers. A key outcome of the technology revolution in India has been connectivity, which has fuelled unprecedented aspiration and access to information. Currently, internet penetration in India is almost 38% and according to GfK Consumer Tech2020 report, rapid urbanization has given rise to a new mass of consumers showing higher propensity towards new tech adoption,” said Mathur.―Business Telegraph