Amid growing threat from small players, the big three-LG, Samsung and Sony- of LED television market in India have decided to cut prices by as much as 15%. Notedly, smaller brands like Micromax, Intex, TCL, BPL and Sansui are selling their products at prices that are Rs 2,000-10,000 cheaper than those sold by big players.
LG, Samsung and Sony together accounts for 80% of the Indian LED TV market but others are now gradually invading their space. With change in technology and plunging prices of large screen models, many consumers prefer changing their TV sets every 4-5 years.
The companies are primarily worried about 32-42-inch segment, which alone accounts for over 55% of the market. “Globally, there has been no decrease in prices of LED televisions, but the big brands are under pressure to reduce prices in India due to sales taking a hit with several brands entering the market and playing on price,” a leading television maker told Economic Times.
While LG India attributed the price drop to “drive sellout velocity and gain market share”, a Sony spokesperson said some price correction was done in large screen sizes due to those models reaching end-of-life. Samsung India’s vice-president Rajeev Bhutani told Economic Times that the companny , in fact, raised the prices due to panel prices going up. However, retail executives said it dropped prices in some of the models after earlier raising those.