Television industry fears decline in sales, rising RAM prices along with ongoing tension in West Asia became the reason
TV Sales Down Fear: There is a fear of declining sales of the television industry due to rising production costs amid the West Asia crisis. The pressure of rising costs is intensifying on the television industry, which is likely to impact sales in the future. Along with the rise in RAM prices, the cost of plastic and sea transportation has also increased due to the ongoing geo-political tension in West Asia. Apart from this, due to weakness in rupee, production cost has increased due to which retail prices are also increasing. The effect of rising prices is also visible on the preferences of consumers. Many customers are now choosing smaller size models instead of big screen televisions.
Consumers are postponing their TV purchases
Big companies have not yet passed the entire burden of cost increase on to customers and are bearing some of the burden themselves to maintain their market share. Despite this, consumers are postponing their purchases. However, the television industry is hopeful that the demand will improve during the festivals in the second half of the year.
What do people from the television industry say
Avneet Singh Marwah, Director and Chief Executive Officer (CEO), Super Plastronics Pvt Ltd, said that the situation remains challenging due to rising costs and there are signs of a trend towards cheaper TV options in the industry. According to him, customers who were earlier thinking of buying a 55-inch television are now choosing the 50-inch model. Apart from this, instead of 65 inches, 55 inches option is being taken. He said that prices have increased significantly in the last six months. In such a situation, a 32-inch ordinary television, which earlier cost around Rs 9,000, is now being sold for around Rs 11,000.
NS Satish, President, Haier India, said that to some extent there is a trend towards smaller models, but easy monthly schemes are helping to sustain the demand for large screen televisions. He said that almost half of the company’s business is based on monthly EMIs, due to which the impact of price rise is less felt. He said that some customers are buying bigger televisions by paying higher installments while the price conscious customers are opting for smaller TVs.
Based on PTI inputs
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