Indian LED TV market registered robust growth in 2018, Veira Electronics had a volume wise growth of around 90 percent over the previous year, and its increase in revenue was more than 70 percent. During the year the company made a conscious effort to acquire customers who are looking for a quality product. The company wants to be recognized as an ODM that manufactures quality products. It has also been able to communicate the vision to the brands associated with the company that it is an ODM that can develop and deliver the product as per their requirement and match the quality of the best in business.
In 2019 television shoppers can expect to see more jumbo-sized sets in stores, along with more enhancements to display performance and increasingly sophisticated voice control. This year will also see the 8K sets from several brands and these will be super large and super expensive. But these high-resolution sets would not really be meaningful for most of us for at least a few years.
Households in India are at a cusp of transition and a shift in preference has been witnessed from conventional TV sets to smart TV sets. Changing lifestyle of middle-income population is attributed to rising in income level, increasing awareness, adoption of newer technology and increasing internet penetration. The market is moving toward smart TVs, newer and latest formats are coming in this category. TVs with a screen size of 43-inch to 55-inch with ultra HD and 4K technology are going to be commonplace during 2019. Veira Electronics expect that these larger screen set with upgraded technology to take a bigger share of the TV buying market.
Growing internet penetration in the country will contribute to an increase in the sale of smart TVs. Improved content from video streaming companies will also lead to a shift in buying pattern to the smart TVs. Government initiatives toward rationalization of taxes are some of the key factors which are likely to bolster the growth of Indian smart TV market. Low customer price of entry level panels will make the CRT TV users in rural area pockets to graduate to LED TV.
Veira Electronics is well prepared for this shift from basic category models to the smart category. The company has developed some exclusive smart TV platforms and developed India’s most affordable smart TV which will be launched this month. The company is already seeing a lot of interest and excitement amongst brands to launch this product before world cup 2019.
During the year the company foresees challenge from the entry of more and more International brands who will be selling material online and also through brick and mortar shops, at market disruptive prices. Then there will be fly-by-night operators importing substandard material from China and dumping in the market at very low prices. The market for 24-inch and 32-inch basic TV sets is getting totally commoditized.
Pricing of TVs in 24-inch and 32-inch has more or less stabilized, would not see much change in price in this segment. The market will definitely witness a drop in prices of larger screen variants from 55-inch to 75-inch.
Veira Electronics is very upbeat about the market scenario in the current year. It is going to be a mix of opportunities and challenges. Its focus in this year is going to be on technologically upgraded and larger screen TVs. The company will have a separate sales team this year to look after the online sale as it sees a big opportunity here. The company is targeting a growth of 70 percent in this year volume wise and aiming a revenue growth of 80 percent. At least 30–35 percent of growth will come from the new customers. Tax rationalization done by the government in 32-inch LED and cricket world cup 2019 will also help to grow the market size. During the last Diwali, the company sold in excess of 100,000 units of LED TV.