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Electronics boom rides colour television sales
Payal Verma in New Delhi |
October 21, 2003 08:30 IST
The consumer electronics industry is hoping to grow 20-50 per cent this festival season compared with last year.
The growth will ride on the huge sales of colour televisions - especially flat screen ones -- and microwave ovens, apart from other products like audio systems, washing machines and refrigerators.
Companies have been reporting double-digit growth rates since September across all product categories, mainly televisions.
Leading industry players say a buoyant rural market, the pent-up demand of past six months and the upgradation of products at marginal costs are collectively contributing to the high growth rate.
Says Chandramani Singh, national head (consumer electronics), LG Electronics India Pvt Ltd, "We saw a 100 per cent growth in colour television sales during Onam as compared with last year. The market is doing extremely well now. We sold five times our average sale of flat televisions. We are not able to meet the demand."
Singh adds: "Our biggest sales have been the rural and semi-urban areas this festival season. Other products like refrigerators, washing machines and microwaves, mostly first time buys, have also picked up. The sales should peak this week," he adds.
Sunil Tandon, vice-president (marketing) of Videocon, agrees: "Our 29" flat television models that used to account for 11-12 per cent of our sales, contribute to 36 per cent of the sales now. We have already surpassed our targets for our just launched microwaves for the month."
The consumers are upgrading from the 21" conventional colour television models to flat televisions in large numbers.
There has also been an offtake of the large flat television models. Samsung reports that the most important category for the company has been the 29" sound oriented high-end models.
On the other hand, the microwave oven sales have come from fresh buys. Rajiv Karwal, managing director, Electrolux Kelvinator Ltd, says, "We expect to grow by 20-25 per cent over last year." Whirlpool saw double digit growth access all its businesses during Onam. "We are seeing good sales in Delhi, Mumbai and in parts of Maharashtra. During the festival period, 30 per cent of the industry's sales take place. We expect the washing machines to do well during November and December," says Benoy Roychowdhury, vice president (sales), Whirlpool India Ltd.