India is expecting Rs400 crore worth of sales in the upcoming
festival season and is taking measures to s achieve its
target. First the company has slashed prices on its range
of consumer electronic goods for the season and has set
aside Rs20 crore to spend on advertising and promotional
activities during this period.
company expects to touch Rs1,000 crore in consumer electronics
business during the current fiscal against over Rs700
crore last fiscal and aims to double its business from
consumer electronics to Rs2,000 crore in three years.
With this, the company aims to be slotted among the top
four consumer electronics brands in the country.
to Suresh Sukumaran, the Philips India consumer electronics
business head, the company was confident of achieving
the sales target of Rs400 crore this Diwali season compared
to around Rs300 crore achieved in the same period last
said, "We have firmed up most aggressive prices for
our entire product range for the Diwali season, which
nobody in the industry is offering today. We are also
launching some new products for the first time during
the festive season," he said.
said the company currently enjoyed a market share of 6.7
per cent in the CTV segment and was aiming to improve
its share to over 8 per cent by the current fiscal.
CTV market is expected to grow at 8 per cent to around
75 lakh units this year compared to around 71 lakh units
last year. The real growth is coming from flat and large
screen televisions he said.
to him among the different product categories DVDs are
expected to contribute around Rs200 crore of revenues
this year, while home theatres would begin contributing
at least Rs150 crore per annum from next year.
officials said there is tremendous potential to grow the
CTV market as these have penetrated just about 20 per
cent of the households. The highest penetration of CTVs
is in Delhi and Mumbai, followed by Kerala and Punjab.
In Tamil Nadu, the penetration is about 26 per cent, he
Videocon, Philips India has always resisted joining price
wars. Late last year, however, Philips introduced its
low-priced CTV range Vardaan and has seen sales soar by
around 25 per cent. Already, the Vardaan range accounts
for nearly 60 per cent of its CTV sales.
CTV sales in the first quarter of 2004, went up by more
than 25 per cent compared with the same period in 2003.
Encouraged by this Philips also cut prices of its DVD
players and home theatre systems by 15-20 per cent early
this year. The company now has a home theatre system that
costs Rs16,000 and the new DVD carries a price tag of
Rs3,990 while its 29-inch CTVs are priced on par with
competing 25- inch CTVs brands.
Philips has always maintained its premium price positioning
and the present affordability drive is a departure from
its earlier stance.
is placed fifth in the 85 lakh units-a-year CTV market
Samsung, Videocon and Onida, and according to industry
estimates, it has a market share of a little more than
5 per cent.