Color TV Annual Report 2010

8/6/2019 Color TV Annual Report 2010

http://slidepdf.com/reader/full/color-tv-annual-report-2010 1/4

The Indian CRT CTV market stands at

18 million sets in 2010, registering a

decline of 4.6 percent over last year.

This is inclusive of 5 million sets supplied

to Electronics Corporation of Tamil Nadu

(ELCOT) for free distribution by the Tamil

Nadu government.LG, Videocon Group brands, and Samsung

together account for 50 percent of the vol-

umes market. ELCOT procurement account-

ed for 28 percent of the CRT market. Onida,

at sales of 1.4 million sets, accounted for 7.8

percent.

The balance 13.9 percent of the market com-

prises some national brands, some regional

brands, and some wholesale markets like

Lajpat Rai in New Delhi and Lamington

Road in Mumbai. Panasonic, Haier, Weston,

Philips and Salora each in the 2 million sets

vicinity, and Sharp, T-Series, Beltek, TCL,

Oscar, SVL, MEPL, Futec, and Moser Baer

are at sales level of 60,000–120,000 sets each.

Other brands with presence are Crown, Ge-

nus, LB, Daenyx, Jolly, and MEPL.

Philips, Toshiba and Akai have recently re-

launched their products, and 2011 will be

the year to watch these brands closely. Hi-

tachi TV did not have appreciable sales as

its products were not available. Intex has

launched its CTV models in October 2010.

Size-wise sales indicate that 14-inch TVs re-

mained a popular choice commanding 51.5

percent of the market, The ELCOT procure-

ment is wholly in 14-inch screen size. The

mid-size segment had a 46.7-percent share.

With increasing popularity of LCD televi-

sions, the large screen CRT sets have been

reduced to a miniscule 1.8 percent market

share.

Slim and ultra slim TVs have emerged as

growth areas in the CRT segment. The ma-

jor growth for this segment is likely to come

from the tier-II and tier-III cities, and rural

markets, which are growing signicantly.

LCD TelevisionsThe LCD television market in India in 2010

is estimated at 3 million sets. It doubled it-

self from 1.5 million sets in 2009.

The three brands, Samsung, LG and Sonycontinue to dominate the segment with a

combined market share of 72.5 percent.

They are each in the sales vicinity of 0.7-

0.75 million sets. The balance 0.825 million

sets are accounted by Videocon, Onida and

Haier, among others.

With LCD TV sales in India gaining momen-

tum, 2010 will perhaps be the last year that

cathode ray tubes can lay claim as the lead-

ing television display type in the country on

a revenue basis. LCD TV revenues are ex-

pected to rise to `12,000 crore in 2011, up

by a stunning 60 percent from `7,540 crorein 2010.

Having said this, 2010 did not meet the

expectations of Indian LCD TV marketers.

The consumer, they assert, seemed to be

confused between LCD and LED choices.

Conversions and upgrades from CRT tele-

visions to LCDs were slow. The year 2011

will nd a spurt in sales for two events, the

Cricket World Cup and the Diwali festive

season. The LED contribution is expected to

increase in 2011, with makers rationalizing

the prices of this category.In terms of LCD TV sizes, 32-inch models

have been the most popular, with a 41-per-

cent unit share. 24-inch or smaller sets ac-

counted for a 36-percent market share. Cur-

rently, 21-inch and smaller screen CRTs are

the most common televisions in India. For

this reason, it is expected that 22-inch and

24-inch LCD TVs will be an important prod-

uct in the Indian market.

BrandsLG dominates the CRT segment with a 20.5-

percent market share. Its emphasis is the

Color Televisions

52 | TV VEOPAR JOURNAL | APRIL 11 | adi-media.com | An ADI Media Publication



ated in China and promote Chinese

brands on global basis. The company

has launched LED, 3D and Internet

LCD for the premium consumer and

also made signicant inroads in the

rural markets, with 70 percent of its

contribution from tier II and tier III

cities, and rural sector.

Philips TVs are fast becoming popu-

lar amongst premium consumers. Its

agship model Cinema 21:9 TV, 15

models of LED, eight models of LCD

and ve models of ultra slim TVs are

positioning the company as a high-

quality premium brand. A unique

four year warranty, a free LCD TV

and DTH connection clubbed with

some premium products are gettingattention.

Toshiba with its three-dimension

strategy for the Indian market,

Range, Value and Speed has seven

new series with more than 20 models

planned for launch in early 2011.

2010 has been the year of channel

expansion for Weston. With a to-

tal production at Dixon of 1.2 mil-

lion sets, 950,000 sets as contract

manufacturing and 250,000 sets as

Weston brand, the company is in an

aggressive mode. Lighting, washing

machines, and set-top boxes are the

other focus areas.

Sharp is geared up for robust expan-

sion plan in India in a phased man-

ner. Its Quattron range of televisions

is a differentiator and offers four-col-

or TVs, based on proprietary UV2A

technology.

Akai has an entire range of LCD and

LED models for the tier I and tier II

cities and competitively priced CRT

CTVs for tier II and tier III cities,which Akai markets through its dis-

tributors.

Global scenarioThe global television market was 247

million sets in 2010, a 17-percent

hike over 2009 - the best growth since

at-panel TVs were introduced.

LCD TelevisionsLCD continues to dominate the TV

market worldwide, accounting for at

least half of the total TV market in

The mantra is to cover every dealer

with every product at every time.

Panasonic follows a dual strategy for

tapping different types of consumer

groups. Its product portfolio has a setof products for high-end and also for

high-volume segments. Its plasma

range is popular. Localization is the

route the company follows and 2010

saw new product launches developed

for the Indian consumer. With a mis-

sion to upgrade the lifestyle of the

Indian consumer, the company lays

emphasis on eco ieas and eco-friendly

products.

This year Haier adopted an aggres-

sive marketing strategy as a step to

strengthen and combine the brandimage in India. You inspire us and

John Abraham did wonders for the

company image. Haier has expanded

its presence in the country with the

opening of 85 Experience Centres,

and 500-plus planned in 2011.

TCL is slowly building a world-class

brand by focusing more into its mar-

keting activities. The company is now

becoming aggressive in marketing

and selling products under its own

brand, around the world to complete-

ly transit from Made in China to Cre-

premium segment has been on full

LED LCD television sets. The mar-

keting strategy was woven around

the sure-shot combination of Bolly-

wood and cricket.

Videocon’s core strategy in 2011 is

to improve the brand image and

increase market share. The group

has chalked out a bi-polar strategy;

wherein premium image will be built

through aesthetically and technologi-

cally superior products and volumes

driven through a frugally innovative

range to cater to the mass market.

The trade network is being expanded

as also more number of exclusive re-

tail outlets, NEXT and Digiworld be-

ing added. The company is setting upanother new manufacturing facility

at Manamadurai.

Samsung is looking at growing its

CTV sales based on new product and

technology introduction; strengthen-

ing its product display at multi-brand

counters and enhancing penetration

in the semi-urban markets.

The Onida Group, includes the brands

Onida and Igo. On the occasion of

having completed 30 years, the com-

pany launched a range of innovative

products across various categories.

An ADI Media Publication | adi-media.com | APRIL 11 | TV VEOPAR JOURNAL | 53



all regions except Asia Pacic. Even

with the strong demand growth for

LCD TVs worldwide, sales have been

lower than as expected by manufac-

turers, and the resulting rise in glob-

al LCD TV inventory during Quarter

3, 2010 has led to more vigorous price

erosion during Quarter 4, 2010. LCD

TV market is expected to rise from

190 million in 2010 to 215 million

in 2011, although an increase in the

rate of ASP erosion will lead to the

rst ever revenue decline in the LCD

TV category.

Japan has been a spotlight market

for LCD TV growth in 2010, with

the market forecasted at 22.6 million

units, an increase of 80 percent from2009 due to the Eco-Points stimulus

program. That program will end in

2011, so the LCD TV market is ex-

pected to fall sharply. European LCD

TV market has been fairly robust in

2010, but growth will fall from double

to single-digit rates over the next few

years. Also in 2011, emerging regions

will overtake the developed regions

(Japan, North America and Western

Europe) in total LCD TV unit volume

as the growth focus shifts to the coun-

tries with lower at panel TV pen-etration.

While the worldwide market for TV

sets is strong, it has been a tougher

road for North America, rising just

0.4 percent through the rst three

quarters of 2010. As unemployment

remains high and consumers remain

sensitive to price, budget-conscious

consumers have been surprised by

limited price declines, partially in-

uenced by a much stronger mix of

advanced TV technologies introduced

this year like LED backlights, 3D,

and Internet connectivity which offset

any price declines. A decline in LCD

TV panel prices is expected to slow

down in Quarter 1, 2011 as a result

of better-than-expected TV demands

during the year-end shopping season

in the US. A soft landing may be pre-

dicted, with the average unit price of

LCD TV panels expected to fall at a

slower rate of US$ 5–10 per month

compared with Quarter 4, 2010.

LED backlights have been a key

trend for LCD TVs in 2010, and their

penetration into LCD TV market will

rise to 20 percent globally due to more

attractive pricing, especially in the

second half of 2011, with uorescent

backlights taking a back seat. More

than two-third of the total market for

large-sized LCD panels in 2011 will

incorporate LED backlights, up from

less than one-half in 2010. An esti-

mated 67 percent of large-sized LCD

panels will use LEDs in 2011, com-

pared to 44 percent in 2010.

This is possible due to rapid decreas-

es in the premium for LED models

from highs of 100 percent during

1H 2010, to less than 50 percent in

2011; for some sizes and frame ratesit will fall to nearly 20 percent. LED

backlighting is expected to continue

to grow in product line representa-

tion in the long run due to its energy

savings and ability to achieve a thin

form factor. Though LED continues

to come at a premium, the cost differ-

ential will erode and it will gradually

replace traditional backlighting in all

but low-end models over the time.

LED Televisions

Globally, LED televisions have beenthe star product of the electronics in-

dustry in 2010, mainly due to their

picture quality which is far superior

to traditional LCD TVs. The origi-

nal premium price on LED TVs has

fallen rapidly, and further price cut-

ting is expected in 2011. LED TVs are

expected to take 40 percent of the TV

market in 2011, up from 20 percent in

2010 i.e. 49.4 million units, and will

ramp capacity 30 percent in 2011 af-

ter ramping it 30 percent in 2010.

Demand for LED LCD TVs has been

on the rise, but sales have been stunt-

ed by the fact that key components,

such as light guide plates (LGPs), are

in short supply. This is set to contin-

ue well into 2011, causing concern for

many in the industry. Manufacturers

of LGP have been attempting to deal

with the problem by turning their

diffusion plate lines into LGP lines,

increasing competition dramatically,

but still failing to meet the increasing

demand. A slight ease up on demand

has recently helped, forcing many re-

tailers to sell off overstocked units at

sale prices. This has resulted in some

manufacturers producing less LGPs

than their capacity allows. However,

this slowing demand is expected to

change for the worse in 2011. It is ex-

pected that 78 million units of LED

LCD TVs will be sold in 2011, double

that of 2010, while the edge-type LED

LCD market will boom, thanks to in-

creasing demand. The slowdown in

production of LGPs could have a det-

rimental effect on the market when

things pick up, as there simply will

not be enough to go around.

With the market expected to double

in 2011, supply of LGPs and rawmaterials will be essential. To ease

the problem some LGP manufactur-

ers are attempting to make slimmer

LGPs, which will utilize less raw ma-

terials and, therefore, result in more

end products. Many LGP makers

are still producing the plates with a

thickness of 4 mm, despite the ability

to lower this to 3.5 mm or even 3 mm

and save the extra raw materials for

other LGPs. Manufacturers of LGPs

are also experimenting with new pro-

cesses and the development of newmaterials, which could help the situ-

ation. Some are also increasing the

brightness of their LGPs, but this is

unlikely to have a positive effect on

the supply.

3D TelevisionsInnovations as 3D were introduced

to capture consumers’ attention and

drive strong growth in 2010, but sales

of 3D TVs disappointed many brands

and retailers at around 3 million unitsworldwide, largely due to pricing fac-

tors. The industry seems intent on re-

ducing the cost of going 3D as well as

tackling negative consumer attitudes

toward the expense and hassle of ac-

tive shutter glasses.

Standard factors for televisions such

as screen size, display thickness, and

the quality of image will soon peak,

and 3D capability will be added in

by manufacturers to compete in the

market. 3D TV will continue to pro-

54 | TV VEOPAR JOURNAL | APRIL 11 | adi-media.com | An ADI Media Publication



vide premium brand CE manufactur-

ers with a way to differentiate them-

selves from the competition and add

value for consumers.

Toshiba’s announcement of autoste-reoscopic or glasses-free technology

might be discouraging for some con-

sumers still to get into the new gener-

ation of 3D TVs. But the glasses-free

technology is still around four years

away from being used on large home

TV sets.

While the long-term market pros-

pects for 3D televisions remain

bright, short-term setbacks have

caused the consumer electronics in-

dustry to re-evaluate the product. At

CES 2011 too, the brands chose to de-emphasize 3D TVs as a product offer-

ing and shifted discussion instead to

3D as a feature to be promoted inside

televisions, which consumers can use

as a preference. Much of the activity

relating to televisions focused on the

three types of 3D that will be offered

to consumers: active, passive and

glassless 3D. Such a range of choices,

however, will only serve to create con-

fusion among consumers and further

delay purchase plans that buyers

might have. An aggressive push couldbe discerned by some brands toward

pattern retarder or passive 3D tech-

nology sets. The biggest advantage of

these sets is that glasses are easy to

wear and prices could be affordable.

And although issues exist with pas-

sive 3D, they can be overlooked as

the technology is thought to provide

an adequate 3D viewing experience

at affordable prices to consumers.

3D is here to stay, and consumer adop-

tion will increase as prices become

more affordable and content becomes

available. However, the industry’s

vision of how 3D will be delivered to

consumers is changing. At present,

most consumers are unwilling to

spend additional money for a televi-

sion set that lacks content, requires

viewers to wear glasses and includes

hidden costs such as buying a 3D Blu-

ray player or more glasses. However,

positioning 3D as an added feature

can empower consumers to choose

whether they wish to have access and

use the technology. Also of interest in

recent developments is that amongtelevision brands that plan to intro-

duce 3D TVs in 2011, many are tier

II and tier III brands such as Coby,

Hisense and Polaroid. To be sure,

the TV market will need some time

to perfect both picture-viewing qual-

ity and price to t consumer demand,

even as 3D companies continue to in-

novate and experiment in new areas

to keep up with those demands.

Smart TV

While Internet-enabled television(IETV) was highlighted in 2010, the

term smart TV appeared to be used

by every brand despite the differenc-

es in denition for the feature. For

all intents and purposes, a smart TV

seems to be an IETV set with brows-

ing capabilities, either partial or

complete, and features an expanded

application suite and the availability

of a software development kit (SDK)

for application developers and ad-

vanced remote. The precise denition

of a smart TV could be narrowed intime to a number of specic applica-

tions-more than likely encompassing

Internet browsing, social network-

ing, gaming, health and tness, and

specic platform use. Overall, these

sets are seen to improve and offer in-

creased interactivity.

Plasma TV Demand continues to be very robust

in 2010, helped by the fact that con-

sumers are still looking for strong

value, and plasma TV has maintained

its rate of price decline. Plasma TVs

were well-suited for consumers’ pur-chasing habits in 2010, providing the

most affordable large at panel TVs

for many consumers. In addition,

the strong industry push for 3D TV

helped, as some reviewers and con-

sumers concluded that plasma TV

had superior 3D performance com-

pared to LCD TV, at least in terms

of icker.

While 3D has not played a big role in

the growth of plasma shipments, it

has helped to support plasma TV in

the competition with LCD TV. With

3D functionality, plasma can re-posi-

tion itself as a lasting technology in

the TV industry. In fact, plasma TV

brands are entering 2011 with 3D

across their product portfolios, from

42-inch HD to 152-inch.

LCD Remain at top of the wish-listDespite all the innovations, a contin-

ued focus by consumers and manu-

facturers on affordable low-end and

mid-range TVs is expected to drive

the bulk of TV shipments. LCD TVs

are replacing older CRT TVs for a

number of reasons. LCDs take up

less space than the bulky tube TVs,

consume less energy and are free of

the harmful radiation that is emit-

ted from cathode rays in tube TVs.

As a result, the sleek, energy-efcient

LCD TVs have been at the top of the

wish list for many consumers around

the world.

Research conducted in February

2011

An ADI Media Publication | adi-media.com | APRIL 11 | TV VEOPAR JOURNAL | 55

Color TV Annual Report 2010

Documents