Chinese TVs fail to entertain
By Mohini Bhatnagar | 06 Oct 2001
Mumbai: The Chinese are coming, the Chinese are coming. We have been hearing paranoid cries like these from Indian businessmen for quite sometime now. Nevertheless, as it is evident now, Chinese consumer electronics companies have not made much headway into the Indian market.
Three consumer electronic companies - Konka Electronics, Haier and TCL - had entered the Indian market a few years ago. Of these, Konka is now reported to be either planning to move out of India or letting a distributor handle the brand.
Konka, by its own admission, says it does not have the financial muscle to import and market its brands without the support of an Indian partner; the company now prefers to source its requirements from local suppliers. Its market share in the Indian CTV market has never crossed 1 per cent since its entry into India in 1998.
Konka officials now say the company is keener on having strong distributors in the country than in building up the brand. TCL, which went in for a marketing tie-up with Baron Electronics, is the only Chinese brand that has done reasonably well. It has a market share of around 3.9 per cent, with volumes of around 16,000 per month. Lately, the brand has been hurt by erratic supply schedules.
Haier, a well-known Chinese brand for electronic appliances and air-conditioners, has also dropped plans of venturing into the Indian market. It was earlier reported to talking to Mirc Electronics of Onida fame for a tie-up.
Knowing the value-for-money attitude of the Indian consumer, this is all the more surprising as Chinese goods offer exactly that - value for money. They score in terms of price and are also technologically strong.
China has a massive CTV manufacturing capacity of 30 million against Indias six million.Most imports from China are in the form of kits, which sometimes find their way into manufacture of other brands, as Chinese kits are cheap.
Analysts reason it out thus: Indian consumers, while being price- and value-conscious, are also brand conscious.
The Koreans have realised this aspect very well and since launching their products here, they have made all-out efforts to build up brands. LG and Samsung have made huge investments in advertising and marketing essential for brand-building and though the Chinese have a strong manufacturing base, they have neglected to build up brands so crucial in these sectors.
