At Future Group-owned E-Zone stores, panel TVs have been flying off the shelves with high-end models above Rs 40,000 being the most sought after item.
The introduction of 4 K TV sets — that offer four times the clarity of high definition sets, has helped business to grow for most consumer durable retailers.
Import duties
Apart from technology upgradation, imposition of 35 per cent import duties has also forced consumers to buy TV sets from India. “While slapping import duties have helped generate domestic sales for flat panels, consumers are adapting to new technologies and upgrading from their previous flat panel TVs this festival season. This year, the introduction of 4K TV sets is driving panel TV sales and with 11 new models being launched, we are seeing 18-20 per cent growth in this segment compared to the previous festival season,” says Rajan Malhotra, CEO, E-Zone, and President, Future Group.
Imports coming down drastically in the category is another reason for panel TVs getting a boost in sales.
“There was big chunk getting imported but with 35 per cent import duties, it is no longer profitable for Indian consumers to bring in TVs as part of their hand luggage from neighbouring countries,” observes Nilesh Gupta, CEO, Vijay Sales, one of Mumbai’s largest consumer durable chains.
Expecting flat TV sales to grow 22 per cent this season, Vijay Sales has been witnessing quicker off take of bigger-sized television sets measuring 46 and 55 inches.
“Consumers are actively seeking better technology and the 4 K television sets across brands such as Samsung, Sony and LG have been the fastest-moving items at Vijay Sales,” he adds.
High gold prices may also be another factor leading to big ticket purchases in panel TVs.. As Gupta observes, “As gold has become expensive, consumers are willing to set aside a similar amount for high-end TV sets as they have to buy something new during the festival season.”
It is the premium end of the durable category which has given a boost to consumer durable retailers.
“The slowdown is not impacting sales in the premium segments such as high-end panel TVs, as these set of consumers are not necessarily suffering from low sentiments. Besides, there is also pressure on banks to give cheaper loans to buy durables to induce production and consumption for the category,” added K. S. Raman, Director, Next Retail, part of Videocon Group.