LCDs to dominate TV mart

By 2007, tube TVs (cathode ray televisions or CRTs) will cede crown of dominance to LCD sets for the first time, according to market research firm iSuppli. In India too, LCDs and plasma TV screens are pushing CRTs off the shelf - at least in urban markets.

The market for flat panel TVs (LCDs and plasmas) is expected to double to four lakhs by the next year. And World Cup 2007 is expected to boost sales.

Companies are taking the cue. Amitabh Tiwari, business group head - consumer electronics, LG, said the company had outlined a marketing spend in excess of Rs 50 crore (Rs 500 million) for the ICC Trophy and World Cup 2007. He foresees a growth of over 100 per cent in its flat panel products.

"There is demand from both tier I and II cities, and if the trend continues, by February 2007, prices will slide in the front panel display (FPD) products," he said.

Sharp India has "allocated a marketing spend of Rs 3-3.5 crore (Rs billion) on the Cricket World Cup in March alone and plans to sell at least 2,500 20-52-inch LCDs during the month," according to Prasun Banerjee, vice-president - marketing. It is estimated that 50 per cent of the LCD market is for 30-inch LCDs. Banerjee said the company expected a turnover of Rs 200 crore (Rs 2 billion) by the end of the financial year from Rs 75 crore (Rs 750 million).

LG, which expects to close 2006 with 3.4 lakh (340,000) FPD units, too, is sure of breaching the seven lakh mark next year. "We have sold the 32-inch LCD and 42-inch plasma TVs like hot cakes this season and we expect the trend to continue."

Not wanting to be left behind, Samsung, too, is high on flat panels. The company is betting on its LCD range that includes 11 models and plasma with four. Considering the cricket fanaticism, Samsung is bidding to leverage on its LCD products. Ruchika Batra, general manager, declined comment on the marketing spend for the World Cup 2007, but hoped consumers will get to choose from more of Samsung FPDs "through our 400 multibrand outlets".

Batra added Samsung spent over Rs 55 crore (Rs 550 million) on the festive season branding, a number that can only escalate during the cricket season next year. "The flat panel display industry, in particular, has recorded huge revenue growth since the launch of digital television services. Escalating interests in flat panels, specially in the price range of Rs 60,000-80,000, is coming from the new generation buyers who have upgraded to DTH products."

Japanese consumer electronics major Hitachi, meanwhile, says it would spend roughly Rs 12 crore (Rs 120 million) to advertise and promote its LCD and plasma TVs in India. It plans to capture 20 per cent of the high-end plasma TV market by 2007-08.

What's adding to the sales is that applications ranging from flight information displays to boardroom panels, from cricket scoreboards to shopping malls use flat panels. The latest one to catch the fancy of Indians is in digital signage - an electronic alternative to typical poster-size ads, now seen in many public venues such as shopping malls, airport corridors and museums.

"Marketers are seen embracing non-print advertising methods that allow dynamic updates and a rich, entertaining content.

This recognised need for electronic signages in public spaces has increased the forecasted outlook for the worldwide market for large FPD-based (26-inch+) public displays to reach 2.9 million units worldwide by 2010 showing a CAGR of 46.3 per cent from 2005-2010," informs a market analyst.

The good news is that last year, prices of LCD TVs fell by 35 per cent. Whatever, "the cost differential between CRT and LCD is easily justified because of the shorter payback period of between two to three years, through saving in space and electricity consumption," say analysts.