TCL, China’s largest TV maker, may trigger a price war in the flat panel TV market next year when it reenters India by selling 24-inch high-definition LCD televisions for Rs 14,500, about 20% cheaper than 22-inch flat panel TVs of LG, Samsung and Sony. “We are expecting bloodbath in the LCD television segment,” said E Hao, chief sales officer of TCL. “Our India team is working on options for quick penetration of Indian households,'' he added.
Prices of LCDs that account for more than a one-fifth of the total television market, has fallen over 30% since January putting pressure on company margins.
The game changer at that time was the influx of new technology that saw Koreans snatching market share from Videocon and Onida. The pattern still continues. Early this year, another Chinese player, Haier, overhauled distribution strategies, stepped up marketing push and hired vastly experienced hands to grab a larger share of the durable market. Since January, the company has reduced prices of LCD televisions by 15% to Rs 16,500.
“Indian prices move in tandem with international prices, which have fallen steeply due to fall in raw material prices and increased volumes,” Eric Braganza, president, Haier Appliances India said. Prices of premium electronic products may fall marginally going forward, while that of entry-level products will stabilize”, he said.