Some 15 years ago, TV was a luxury that not every household could afford. In fact, there would be just one TV in the entire neighborhood, which would be the center of attraction. Given the fact that there were lesser media applications, fewer people, limited broadcasts, and no internet, the television doubtlessly passed off as a luxury. It is fascinating how at present, almost every room in nearly every household is equipped with a TV. Even the size of the TVs has taken a great leap.
The online market boasts the lead of 43–55-inch screen sizes and already accounts for 30 percent of the Rs 22,000 crore market, and sales in the 32-inch segment is witnessing a de-growth online due to availability of larger screen sizes in lower price range.
This trend will become more visible in Diwali festivities. 55–60-inch TVs are becoming more common with the advancement of 4K technology. The bigger the screen, the bigger the experience of a communal TV watching phenomenon!
The concept of having multiple TV sets in a single household is rapidly growing in India and it is certain that the saturation factor is not happening in another 10 years. With the rapid advancement in innovation, one can see an evident spurt of growth in the TV industry. With a technological revolution in process, newer TV apps have arrived, making it accessible for people like never before.
The TV technology in India is still maturing with a positive wave in the making. Being one of the largest markets in a developing economy, the transformation from CRT TVs to LED TVs in about 11 million households has paved the path for further innovations. By 2020, India will establish itself as the third biggest TV market in the world; hence making it an attractive destination for those in the business.
Provided the favorable government policies and increasing number of DTH users, the demand for televisions, especially smart TVs, is likely to go up in the next 5 years, especially with the boom of voice interactions in TV wherein one can command the TV through voice to change channels and adjust volumes. Illuminating diodes replacing the backlight is becoming more and more popular.
However, with the declaration of demonetization in 2016, 86 percent of the cash in circulation was outlawed, hampering the curve of demand in almost every sector. Eventually, the electronics sector and the LED TVs industry suffered as well. The Goods and Services Tax was the biggest reform that subsumed multiple levels of taxing into one.
Though the burden on appliances rose just marginally by about 2 percent; distributors as well as larger electronics retailers cut down on their inventory to cover losses. This took a couple of months for the market scenario to get back to normal.
The LED TVs market this year is going through leaps and bounds since beginning of the second financial year. In July 2018, the GST council decided to reduce GST rates from 28 percent to 18 percent on some major electronic appliances including refrigerators, washing machines, and other products.
It was a sigh of relief for many as there was a price cut of about 6–8 percent on these products. This, however, was followed by a 10–15 percent rise in the panel price owing to shortage of panels in Southeast Asian countries like China, Korea, Taiwan, and Indonesia.
The value of the Indian rupee continuously going down and rising fuel prices leading to an increase in transportation and logistics cost made it even worse for manufacturers. In spite of all setbacks, the industry is anticipating a positive response from buyers going on a shopping spree this festive season.
Televisions will always be an integral part of our society, the only question that remains to be answered is how far this relationship will evolve and keep things surprising for the rest of the family.