Companies are introducing new models, increasing stock keeping units, rolling out schemes
FIFA World Cup, the month-long football fever is ringing cash registers for television manufacturers and retailers alike. While demand is picking up fast in select regions of West, South and East where the mania surrounding this sport is high, other markets in the country aren’t far behind. And the frenzy may peak when ICC Cricket World Cup begins in 2019.
Accordingly, retailers are witnessing and expecting major growth in television sales across West Bengal, Kerala, Goa and other states.
According to Piyush Kunnapallil, general manager - consumer electronics business, Samsung India, sporting events tend to stimulate sales of televisions and FIFA World Cup will lead to increase in consumer demand this year. “The numbers for premium TVs are likely to shoot up owing to purchases of big screen units from football fans across the country. The incremental sales would be in the region of 10-15% or more,” said Kunnapallil, claiming to be market leaders in the Rs 50,000 crore-Indian television market with 30% share. The company plans to increase its share to 33% this year.
Panasonic India, which witnessed a 46% growth last month, is looking at incremental sales of 45% to 50% in this month. Neeraj Bahl, business head – consumer electronics, Panasonic India, said, “We should easily achieve this growth which will be driven by big screens. We will also be strengthening our presence in the 55’’ and 65’’ segment from five stock keeping units (SKUs) to 12. This apart, we will be introducing our biggest line up of 19 new models compared to eight models last year. Special promotional schemes are being rolled out as well.”
It appears that television manufacturers and retailers were banking big time on sporting events to boost TV sales this year and next. The buying momentum kick-started with the recently-concluded IPL T20 is witnessing continuity with the ongoing FIFA World Cup and is likely to reach its peak when ICC Cricket World Cup begins in 2019.
“While cricket has viewership across the country, states like West Bengal, Kerala and Goa are big when it comes to football. I think these markets will definitely see almost 100% growth in TV sales. And with football also catching up, other states could witness TV sales growth upwards of 20%,” said Nilesh Gupta, managing partner, Vijay Sales that sells global and Indian consumer durable/electronics brands in addition to its private label brand Vise.
Executives from LG and Havells India did not respond to DNA Money queries seeking comments on sales projections for FIFA.
Future Group’s Sandeep Sharma, head of business – eZone (consumer durables and electronics), who is also responsible for private-label brand Koryo, is gung-ho about FIFA after having already clocked 70% increase in sales of televisions during the IPL T20 season.
“We did great business with our Koryo branded TVs and for FIFA we are expecting a higher number, especially in markets like West Bengal, Kerala and Goa. While the buying trend at our stores is more towards bigger screens, the 49’’ TV units are seeing higher traction from consumers,” said Sharma, adding that all the football matches being in prime time viewing slot has been a great boon this year.
Tata Group’s chain Croma has witnessed a growth of almost 30% average monthly sales since the advent of the FIFA season.
“The growth is primarily driven by demand for UHD-4K LEDs and large panel televisions with more and more people wanting to upgrade to a better television viewing experience. Next year, with the world cup, we expect nothing short of a 30% growth. In a cricket-loving country like India, enjoying the sport on a large screen will be a key driver is what we anticipate,” said Ritesh Ghosal, chief marketing officer, Croma-Infiniti Retail Ltd.
Further boosting the sales of large panel television units are discounts, cashbacks, additional offers and financing deals to create longer tenure equated monthly installment (EMI) options.
UP AND CLOSE
- Incremental sales for premium TVs would be 10-15% or more; In West Bengal, Kerala and Goa, overall TV sales could rise 100%
- Panasonic India is looking at incremental TV sales of 45% to 50% in this month
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