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Philips returns to TV segment in India with Taiwanese partner

Eyes 8% market share in TVs by 2020; Taiwan-based TPV is brand licensee for Indian market

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Consumer electronics brand Philips is looking to regain its lost market share in the Rs 22,000 crore Indian TV market that's currently dominated by players like Samsung, LG, Sony and Panasonic among others.

The company has re-entered the market after a gap of one year with its new brand licensee TPV Technology, a Taipei, Taiwan-based entity that's also one of the top three global manufacturers of display systems. TPV already has rights for Philips branded TVs across markets like Europe, Russia, Middle East, South America, select countries in Asia Pacific and now in India starting from June 2018.

Arun Menon, country business head - Philips branded television and audio, TPV Technology India P Ltd, said Philips has been virtually absent in the TV segment in the Indian market.

"However, during the best of the times, some years ago, we have had a market share of between 8% and 10% in the TV category. We hope to capture a market share of between 6% and 8% in the TV segment by 2020," he told DNA Money.

"On the audio products side, we continue to be one of the leading brands with over 20% of the market in India. This is because there was not much gap in operations/ sales in the time between the previous licensor and the new one (TPV) taking over," said Menon. He said by the end of 2020, Philips is aiming to be among the top five TV brands in the Indian market.

Philips, the multinational engineering and electronics conglomerate headquartered in Amsterdam, had ended its association with the debt-laden Videocon Group earlier this year as the latter was not in a position to pay royalty charges. This led to a complete erosion of its market share in the TV category as a result of which it had to start and build the brand in the TV market all over again.

Accordingly, TPV has introduced a range of LED TV models from 22" to 65" and plans to beef up the offering with new additions gradually. To be sold offline and online, the company will leverage the strengths of its 200 distributors and a retail presence across over 35,000 stores.

Over the coming months, the Indian licensee will work towards setting up the service network and getting necessary sales, distribution and other back-end network in place before the season begins. The company is banking heavily on the technology and innovation aspects coupled with a wide range of products available across price points to be able to capture the lost ground.

TPV is currently assembling most of the TV models through vendors in India and has not yet decided on setting up its own manufacturing plant or identifying vendors to manufacture its products in the country. According to Jordan Oh, country head, TPV Technology India P Ltd, "We have just started assembling the products and will see how it works with our partners here. Thereafter, we will plan (for manufacturing infrastructure) for the next stage of growth in India," he said.

NOW BEAMING

  • 200 – distributors Taiwanese firm TPV has in India
     
  • 35,000 stores – it has retail presence in the country
     
  • 20% – market share Philips has in audio products in India
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