Televisions in India have become smarter and yet affordable with brands offering smart TVs that are barely the quarter the price they once were. The Indian LED TV market registered a strong growth in 2017 due to a sharp drop in the prices of LED TV in addition to rising penetration of LED TV vendors, increasing number of pay-TV subscribers, and most importantly rise in disposable income and growing internet penetration. LED TV is no more about experience and status; it has become part of the basic needs. Most households in India now own a LED TV and in some cases, more than one.
The market for LED TV is about 15 million and is increasing. Overall the sales of LED TVs in 2018 have gone up to 18–20 percent as opposed to 12–14 percent in 2017, with share expected to rise up. The focus is also shifting from the basic need to watch TV to content watching by way of smart TV, and other options in the market. The viewer is not solely dependent on the content pushed by various satellite channels.
There has been a lot of change in the middle income population due to rising income level, easy consumer credit, increasing awareness, and adoption of new technology and internet penetration. In addition, government initiatives like Digital India especially in tier-II and tier-III cities have also augmented the growth of the Indian smart TV market.
India is the largest market for LED TV among developing economies. Households in India are at a cusp of transition and a shift in preference has been witnessed from conventional TV sets to LED TV sets.
According to a report by IBEF, India’s television industry is expected to grow at a CAGR of 14.7 percent by FY21. The Consumer Electronics and Appliances Manufacturers Association (CEAMA) in India estimates sale of 17 million TVs in the upcoming fiscal year 2018-19.
With constant innovations and technological improvements taking place in this space, India is pegged to be the third largest TV market in the world by 2020. These factors are making India a favorable market for international LED TV players’ penetration while being well on its way to becoming one of the preferred mainstream products in India. Yet still there is huge gap in adoption of LED TV on a large scale.
The Make in India concept and the changes in import duties are also favorable steps in the right direction and have boosted local manufacturing facilities.
The Indian LED TV market is getting ready for a price war as global and domestic players are launching aggressively priced LED TVs to secure a larger market share in the Rs 22,000 crore (around USD 3.4 billion) sector. The domestic brands are also giving tough competition to the global competitors.
The pricing strategies work as more and more consumers are fascinated by these affordable alternatives. As prices of large-screen LED TVs drop and the appeal of new technology is hard to resist, the consumers now replace their TVs every four to five years. The price competition is across the board, but the 32–42-inch TV displays are at the core. These TV models account for over 55 percent of the market.
With the fight to grab a sizeable market share between already existing brands and new entrants getting hotter by the day, the consumers are faced with many choices at their disposal.
As affordability becomes the main factor for consumers when buying LED TVs, price wars in India seem unavoidable, resembling the trend in the smartphone market.