TV Veopar Journal interviews a cross-section of dealers across the country.

he dealer fraternity is unanimous on most issues. While they are upbeat on business prospects in the long run, the summer season was not very promising initially. The last one month has seen some briskness in sales. Prices of products across the board, with the sole exception of LCD TVs, have increased over the last couple of years. Manufacturers have not been able to contain the hike in input prices of raw materials, as, steel, aluminum, and copper, and passed on some of the cost increase to the consumers. With increasing disposable income, and consumerism on the rise, the consumer has moved up the value chain. He is quite open to buying premium range of products, a couple of notches higher than he would have purchased a couple of years ago. And fully automatic washing machines, DVD players, frost free refrigerators, and LCD TV sets are no longer perceived as luxury items. New products, advancement in technology, the simultaneous launch of new models in India and international markets are appreciated by trade and the consumer. They provide the requisite impetus to sales. The dealers are mixed in their response to the momentum provided by the unabated cricket fever

moving from the ICC Cricket World Cup to IPL season 4. Some felt these events gave a minimal push to demand, and some said these were one of the busiest periods, and they recorded huge increase in sales, up to 80 percent, mainly in TV sets, especially in the flat segment. Observing the major expansion plans of big retailers and modern retail showrooms, all the dealers feel threatened for their very existence. Having better negotiation opportunity, modern retail may eventually sound their death knell, is the common fear. The positive ones planned to meet the challenge with investing in multiple stores. This panic has not yet spread to tier III cities, semi urban and rural areas, which are high demand areas, primarily for basic models, and where modern retail has not yet shown interest. Dissatisfaction with after-sales service is certainly lower this year, than compared to the yester years. In the past when we have interviewed dealers, they have been almost bitter at the quality and speed of service, or rather lack of it. This year some grumbled, but only half heartedly and in fewer numbers. Increasing sales volumes, albeit declining margins, increase in consumerism, availability of latest technologies and products, and a bright future was the response of one and all.

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Bangalore

TURNOVER

Unilet

2010: `60 crore 2011: `80 crore

Bhubaneshwar
PK Biswal

TURNOVER

Raj Electronics
On price trends Prices of LCD and LED TVs have dropped considerably. Prices of home appliances including refrigerators, washing machines, and air conditioners are currently high, a marked drop is expected in the near future. Moreover, prices of LG and Samsung products are on a southward trend.

2010: `40 crore 2011: `50 crore

Humayun Fiaz On price trends The price of home appliances has increased by 5 percent. However, LCD TV prices have dropped by 510 percent. On impact of summer season on sales The sales of air conditioners have decreased by about 2025 percent in 2011. This year the summer as yet is not very intense and in Bangalore rainfall has already begun, which in turn has negative- Brands Retailed ly impacted sales. Brand Products Sales (%) On fast moving products The fast moving products at the moment are LCD and LED TVs. On impact of sports events
LG Samsung Whirlpool Godrej Onida Philips Sony Panasonic IFB All products All products All products All products All products All products All products All products All products 20 20 8-9 8-9 3-4 3-4 20 10 3-4

On impact of summer season on sales The summer season has not been too harsh on the Indian subcontinent this year. Sales of air conditioners have almost dropped by 20 percent this season. On fast moving products The fast moving products are slim TVs and lower-end LCD TVs. On impact of sports events Cricket World Cup 2011 had quite a positive impact, with 50 percent growth in the LCD TV segment. IPL, however, failed to create any signicant impact.

Brands Retailed
Brand LG Samsung Whirlpool Voltas Godrej Panasonic Videocon Carrier Onida Hitachi Haier Products All products All products All products All products All products All products All products All products All products All products All products Sales (%) 10 10 10 10 10 10 10 10 10 5 5

Sport events have a positive impact on sales. A growth of 25 percent was recorded in the sales of LCD TVs during the Cricket World Cup 2011. On new products and technologies 3D TVs have been launched in 2011; however, there are certain limitations. For instance, 3D TVs need 3D transmission and viewers are not very comfortable wearing the special glasses to watch 3D content. On green technologies The consumers are increasingly looking for star rated air conditioners and refrigerators. On challenges and opportunities The rise in price of the various home appliances and consumer electronics products is a major concern. The profitability has been affected since dealers have to reduce their margins to satisfy the customers. However, the economy is growing and with the increasing number of households in Bangalore, the business prospect seems good. On future outlook The future looks bright. We are planning to expand in tier II cities.

On new products and technologies Some of the new products introduced in the market are smart TVs and cinema 3D LED TVs. On green technologies Consumers are responding well to latest technologies. Sales of star-rated appliances have comparatively increased over the years. On challenges and opportunities There is an acute shortage of technical manpower in India, especially at the time of installation of various products. Also, the after-sales service in every company needs to be strengthened. On future outlook Good growth is expected. Prices are being made affordable by the manufacturers.

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BUYERS GUIDE
Dealers Speak

Asansol

TURNOVER

Reco Electronics
Swapan Kumar Choudhury On price trends

2010: `12 crore 2011: `15 crore

Ankleshwar
Jitubhai Gandhi

TURNOVER

Advancetronics

2010: `7 crore 2011: `10 crore

On impact of summer season on sales Business in the month of May has been adversely affected with air conditioners sales reducing by 35 percent. However, sales of refrigerators have increased this season. The replacement market has picked up with consumers demanding the latest technology. On impact of sports events There has been a significant impact of sports events on sales. A growth of 5070 percent has been recorded in the sales of LCD TVs during the Cricket World Cup 2011 and the IPL season, 2011. On new products and technologies
Sales (%) 10 20 10 20 10 10 8 8 2 2

Prices of air conditioners and refrigerators have increased, whereas the prices of washing machines are stable. As the prices of LCD TVs have reduced from high to reasonable, sales of LCD TVs have grown exponentially with almost 1520 LCD TVs selling per month from our counter. On impact of summer season on sales As West Bengal is a humid state, air conditioners have become a necessity. Both split and window air conditioners are selling well in the region, with a preference for split ACs perhaps due to their aesthetics. Commendable sales have been recorded in the last two months. On fast moving products

Brands Retailed
Brand Products All products All products All products All products All products Consumer electronics Digital cameras Digital cameras ACs ACs

The fast moving prod- LG ucts are refrigerators Samsung and air conditioners. Videocon On impact of sports events
Whirlpool Godrej Sony

Cinema series 3D LED launched by LG is the latest technology introduced in the world of television. On green technologies

Brands Retailed
Brand LG Samsung Whirlpool Godrej Onida Philips Sony Panasonic IFB Products All products All products All products All products All products All products All products All products All products Sales (%) 20 20 8-9 8 3-4 3-4 20 10 3-4

A good number of LED TVs were sold durNikon ing the Cricket World Cup 2011. IPL has Canon also driven the sales to a large extent. Hitachi On new products and technologies

Blue Star

3D and smart TVs have been launched in 2011. However, people are embarrassed to wear glasses as required in the case of 3D TVs. On green technologies The consumers have started understanding the value of star-rated products. They are gradually becoming green conscious. Appliances with 5 star rating are being preferred. Challenges and opportunities During the high sales season, the untimely delivery at the manufacturers end poses a problem. Every customer looks for a unique product, which offers value for money. Timely promotional offers by manufacturers help close sales. On future outlook In the coming months, we anticipate a significant growth of 3035 percent in all segments.

Customers are now aware of green technology. They do not mind even if they have to pay slightly more as they look for the benefit they receive in the long run. There is a high demand for 5 star rated refrigerators. Customers, however, prefer buying 3 star rated air conditioners. On challenges and opportunities Small dealers create confusion by unreasonably selling products at lower prices so that they are able to meet their sales target. This creates problem for the large dealers who have to sell products at the regular rates. Consequently we report high turnover, albeit lower margins. On future outlook The market is expected to grow at a rapid rate. With the rising number of households, we expect business to flourish. The purchasing power of todays youth has increased and luxuries are fast becoming necessities so the future looks promising.

148 | TV VEOPAR JOURNAL | JUNE 11 | adi-media.com | An ADI Media Publication

Margao

Lotlikar Enterprises
Hemant Lotlikar On price trends

TURNOVER

2010: `8 crore 2011: `1213 crore

Ernakulam - Kottayam
Peter Paul Pittappillil

Pittappillil Agencies
On price trends Prices of LCD and LED TVs are going southward. Price of the premium range has gone up to accommodate the everincreasing cost of the manufacturing material; however, the end-prices of the economy range are stable. This ensures that the brands cater to all buyers in every category.

TURNOVER

2010: `75 crore 2011: `110 crore

As demand accelerated, prices spiraled upward. Also, there has been a signicant increase in the cost of steel and other raw materials, which led to a higher manufacturing cost. On impact of summer season on sales The weather is normally the driving force behind sales in the summer season. But this year, summer has been very disappointing. Sales of air conditioners have been far below expectations. On fast moving products All products of LG, Samsung, and Godrej are fast moving. On impact of sports events

Brands Retailed
Brand LG Samsung Products All products All products Sales (%) 40 30

On impact of sports events Earlier, sports events helped push sales for color TVs and LCD TVs, but that is not the case now. The impact today is not as high as it was before. On new products and technologies The response of the customers is slow toward new launches like smart TV and 3D TV, as most of these products are aimed at high-end customers. On green technologies The green technology has a signicant effect on the consumers. People are increasingly looking for high star rated appliances and electronics. They have become cautious about the benets these products provide in the long run.

IPL does not drive Videocon All products 10 signicant sales in Godrej All products 10 Goa. We look forAll products 5 ward to football IFB tournaments here. Whirlpool All products 5 However, during the Cricket World Cup 2011 there was a 20-percent increase in the sales of LCD TVs. On new products and technologies Smart TV is the latest technology introduced in the television industry. On green technologies The response to green technology is very good. The higher the number of stars for any product the more the customers are attracted toward it. On challenges and opportunities Modern trade is the new threat to the traditional retail stores. But we are safe in Margao as of now. The competition has increased with the entry of new players in the market. Consistent effort is required to push sales. On future outlook The future looks bright with good growth and sales. The way the market is growing, it seems that soon LCD and LED TVs will replace CRT and CTVs.

Brands Retailed
Brand LG Samsung Videocon Whirlpool Godrej Products All products All products All products All products All products other than furniture All products All products All products All products All products Mixers, juicers and grinders Sales (%) 20 15 5 10 6

On challenges and opportunities Higher operating costs and lower margins, and requirement of higher capital investment are some of the major challenges. The customers of today look for better showroom ambience and demand a wider range of products. The high technology products attracting the customers and the growing income level highlight a good prospect for the trade. On future outlook We have plans to renovate all our old showrooms so that we are able to provide better ambience. We would also focus on the leading brands to improve customer footfall. Also, we would be adding more counters and introduce the latest computer software.

Onida Philips Sony Panasonic Voltas Small appliances

5 3 5 8 5 18

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BUYERS GUIDE
Dealers Speak

The weather has gone haywire in Bangalore this year. It has already started raining in May instead of the usual arrival in the month of June. The sales in AC segment have deeply suffered. Prices of air conditioners were initially higher in the months of February and March; but there has been TURNOVER a decrease in the price, by almost 15 percent. In spite of this, 2010: `13 crore the AC sales have dropped by 2025 percent. A decline in 2011: `18 crore growth of the AC segment is expected in Bangalore in 2011. The fast moving products are refrigerators, washing maSharan Wadhwa chines, and LCD and LED TVs. During the Cricket World Cup 2011, there was a breakthrough in demand for LCD and LED TVs. However, there was no turnaround due to the IPL this year. Brands Retailed Products Sales (%) The reason for good sales is usually attractive schemes for the consumer during Brand LG All products 15 these events. At present there are regular sales. There is a very good response from the customers on the green technology. Cur- Samsung All products 15 rently, they prefer 3 star rated products to 5 star rated products due to the sub- Videocon Washing 10 stantial difference in price. machines The competition that creates unnecessary confusion is one of the concerns. Differ- Onida Washing 10 machines ent showrooms offer freebies to their customers, like free installation. But while they do this, they increase the price of the product, which confuses the consumers. Siemens Washing 10 machines This could hamper our image in the days to come. The penetration in the consumer electronics segment is very low. A wide variety of products are regularly Hitachi ACs, refrig10 erators launched, and there is a new technology to sell every time, which creates better opportunities to grow. Voltas ACs 10 It is a growing market and the consumers have a signicant amount of disposable IFB Washing 15 machines income. They are becoming gadget freaks and are ready to purchase it through any means, be it cash or credit card. A good percentage of growth is expected. Toshiba Inverter ACs 3-5

Bangalore

Ashok Combines

Our fast moving products include LCD TVs, plasma TVs, and air conditioners. While one refrigerator is sufcient for a home, one air conditioner is required for every room. This year, sales in April were slow, in May we registered a growth of 70 percent. TURNOVER Both LCD and LED technologies are new to the market. 2010: `11 crore When LCD TVs were introduced, they were highly priced and 2011: `13 crore did not nd favor with the buyers. With the passage of time, manufacturers did expand their range to include economy Satish Gupta models. This year, a growth of at least 2025 percent in this sector is expected. Incentives Brands Retailed Products Sales (%) are lucrative, but if the gap between the modern retail stores and the dealers con- Brand LG All products 100 tinues to widen, it will create a life threatening situation for our business.

Chandigarh

Modern Sales

With the late onset of summer and the state elections, sales did not really pick up. Price hikes by most brands has also negatively impacted sales. There is not a very signicant impact of sports events on sales. IPL had minimal impact. Cricket World Cup 2011 S Jayaprakash failed to promote enough sales as well. There is extreme focus on innovation for high-end products in 2011. 3D Cinema (FPD), wonder door (DIOS), and inverter AC (air cooling) are some of the latest products. Having been in this trade for three decades, we have a 3e pronged approach explore, expand, and enterprise.

Chennai

Brands Retailed
Brand LG Samsung Panasonic Onida Whirlpool Godrej Sony Others Products All products All products All products All products All products Refrigerators and ACs All products Sales (%) 15 15 15 12 9 7 7 20

Jayam & Company

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The strong foothold of dealers in consumer electronics segment in 2010 has given rise to a new retail environment. TURNOVER This in turn is being 2010: `39 lakh shaped by intensifying 2011: `81.5 lakh the competitive pressure and accelerating the Sumit Chatterjee products life cycle. The price war, with the entry of new players in the Indian market, can be ad addressed by strategic planning to get more out of the existing showrooms. In addition, urban and semi-urban markets seem to be more promising than the metros. Tier II and tier III cities should show results this year. With the MNCs in consumer electronics industry having become comfortable, the future seems to be bright. The lack of a well-developed distribution network makes it difcult to penetrate the fast growing rural economies. For enhanced future growth, there needs to be an improvement in the distribution network of the semi-urban market.

Jhumri Telaiya

Chatterjee Sales

Brands Retailed
Brand LG Products Sales (%) 30 CRT TVs, LCD TVs, refrigerators, washing machines 20 Refrigerators, washing machines, ACs, CRT TVs, LCD TVs Washing 10 machines, refrigerators CRT TVs 5 LCD TVs 10 CRT TVs, 10 refrigerators, ACs ACs 10 Washing 5 machines

Samsung

Whirlpool

Philips Sony Panasonic

Voltas IFB

Sales have been excellent due to the hot summer season in Jaipur. There has been a growth of almost 40 percent in the sales of air conditioners. Inverter ACs are seeing an increasing demand with the customers and we are also focusing on them. The fast moving products are refrigerators alongwith 3D TVs. Ours is a relationship-based business, TURNOVER Brands Retailed where people put more stock on the word of 2010: `10 crore Brand Products Sales (%) the dealer rather than on the prices of the 2011: `20 crore LG All products 100 modern retail market. This has ensured a Kamal Kandoi stable business for us, with very less effect of modern retail. There is a good response in the consumer electronics segment to the products launched featuring latest technologies. Brands must focus on the promotion of their premium products.

Jaipur

Videon Electronics and Television

The new entrant, smart TV (launched by Samsung and LG) is expected to provide the requisite impetus to sales. The sales of Blu ray DVDs have not yet picked up, however, once the price goes southward, the trend may change. The future looks bright for retailers who are focused. LCD TURNOVER and LED TVs sales are 2010: `8 crore expected to grow with Brands Retailed 2011: `10 crore Products Sales (%) declining prices. Side-by- Brand LG All products 50 side refrigerators, lapPappu Jaswani All products 35 tops, and digital cameras Whirlpool ACs 8 also had good growth. Saturation in these segments is quite unlikely due to con con- Onida tinuous innovation. We expect a 2025 percent growth this year. Carrier ACs 7 Companies should focus on after sales services. This would strengthen their brand equity and their sales would increase. The lack of cooperation from the companies leave the retailers at the mercy of the service franchises and impacts the business negatively.

Gandhidham

Shivam

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BUYERS GUIDE
Dealers Speak

Almost every fortBrands Retailed night a new technolBrand Products Sales (%) ogy is launched in India. 70 TCL CTVs, LCD The life cycle of the prodTVs, ,washing ucts, thus, is increasingly machines, getting shorter. AfterTURNOVER T induction sales service is another 2010: `50 lakh cooker major problem. Adequate Salora 2011: `60 lakh CTVs 10 number of service centers Haier Refrigerators 10 Manjeet Singh Bhadana are not present in tier II Whirlpool Refrigera5 and tier III cities. Brands should also bring in better strategies to promote sales tors, washing in small towns. As for opportunity, we have a strong and loyal customer base so machines we have a long way to go. Onida ACs, CTVs 5 The future seems to be bright for the large dealers with sound networking across the industry. Small dealers would have to face the real challenge in the days to come.

Palwal

A-1 Electronics Plaza

This summer saw a substantial Brands Retailed depression in demand for cooling Brand Products Sales (%) products. Sales have dropped by alAll products 40 most 20 percent. There is, however, a Samsung All products 20 prospect of almost 100 percent growth Godrej TURNOVER ACs 10 in the coming years. With increasing Voltas 2010: `16 crore All products 13 purchasing power, luxuries are fast Panasonic 2011: `18 crore becoming necessities. Moreover, lu- Haier All products 15 crative nance schemes would propel IFB Washing ma2 Devendra Sadana chines, microsales to a great extent. wave ovens, Presently, we face a lot of competition from modern retail. Serious thinking is dishwashers required on this subject. The industry must provide a level playing eld in the entry-level products in each segment, so that the small dealer network not just survives, but also grows.

Lucknow

Sadana Electric Stores

Visakhapatnam

Sri Rama Electronics

Summer did not favor sales in 2011. There has been a 30-percent Brands Retailed Products Sales (%) downfall in the sales of cooling prod- Brand All products 40 ucts. We face a serious challenge as we LG Samsung All products 20 are losing our customers and there is TURNOVER Godrej ACs 10 tremendous pressure to improve our 2010: `3 crore turnover. We have to cut down on our Sansui All products 20 2011: `3 crore expenditure and focus on prot. Kelvinator Washing 10 A number of new products and techmachines, Rama Krishna refrigerators nologies have been introduced in the market which give sales the requisite impetus. Some of them include smart and 3D TVs as well as the wonder door (DIOS) in the refrigerator segment. As the price difference between 2D and 3D TVs narrows, there would be a marked rise in the sales of 3D TVs in India. With the increasing number of households and the rising purchasing power of the people, market would certainly grow in leaps and bounds. Innovation in technology is another factor which will push sales. Thus, the future is bright.

152 | TV VEOPAR JOURNAL | JUNE 11 | adi-media.com | An ADI Media Publication

Summer is usually a busy month for selling compressorbased products. The direct cool refrigerators sales have shown consistency in performance but the air conditioners sales have opped. We do business with small dealers. From their counters, the sales of air conditioners have reduced by TURNOVER almost 40 percent. The sales of CRT based color televisions 2010: `16 crore have shown a clear and denite sign of slowdown in the city 2011: `16 crore too. In a mature market like Mumbai, the regular trend, espeRajendra Malushte cially within the low income group, is to opt for refrigerators and semi-automatic washing machines. Whereas the high-income group prefers larger sized frost free refrigera refrigerators, fully automatic washing machines, LCD and LED TVs, and split air condiBrands Retailed tioners. These products will continue to grow at a fast pace. Products Sales (%) As distributors, we supply entry-level products to the dealers. I have not come Brand 40 Refrigerators, across any breakthrough technology in any of these products. However, cus- Videocon CTVs, washtomers now have become more particular about power rating stars on different ing machines, appliances. The LED TVs can be considered as new technology. Customers who LCD TVs fall in the high-income group are the chief targets who prefer going to chain Godrej Refrigera30 stores and modern retail formats. tors, washing Competition is tough. With brands and dealers competing with each other, the machines wholesalers have made the market highly non-remunerative for a distributor. Philips DVD players, 20 The operating margins for dealers and distributors are not healthy. Several home theatdealers have either closed down or converted into brand shops. Presently, the ers, speakers market is polarized among chain stores, brand shops, and low class dealers. Acer Laptops Laptops 2 The need of the hour is to work on distinct strategies for each of these segments Kent PuriWater puri3 so that every segment survives and grows with the industry. The market is fiers fiers growing and the industry needs to take an initiative in professionalizing its Haier Refrigera5 sales network by bringing in fair practices. The strategies have to be directed tors, washing machines toward selling to the customer and not to the dealer. The incentive programs must be aimed at secondary sales at each level and not at the primary level. To make this strategy effective, it is important that IT infrastructure be upgraded and integrated with the entire sales channel. The dealers, manufacturers, and micro-nanciers need to come together under a tripartite agreement to provide nance to the needy customer. Zero percent nance is not a solution as it gives nance to the person who is in a position to pay upfront. Some serious discussion and action might be required in this area. Risk sharing formula and risk coverage can also be worked out. The B-class dealers in Mumbai are a dying species. The small dealers will probably contribute not more than 35 percent of the total market, whereas, the retail chain stores and modern retail format will have the lions share.

Mumbai

Market Movers

Sales have been poor this summer, with Brands Retailed decline in sales by almost 35 percent. Products Sales (%) We face tough competition from the modern Brand All products 35 retail outlets. The chain retail showrooms LG All products 15 procure products in bulk and get larger dis- Samsung TURNOVER counts from manufacturers. This in turn Toshiba 2010: `8 crore All home ap35 pliances leads to lower selling prices at these stores. 2011: `8.5 crore There will denitely be a marked growth Sony All consumer 15 electronics in the days to come. Though the incentives Sri Virani products might be lucrative, the increasing gap between the modern retail stores and the dealers will create a live-or-die situation for our business. We are planning to add more showrooms at different locations.

Mumbai

Virani Electronics

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BUYERS GUIDE
Dealers Speak

Surat

Pushpa Agencies

Summer in India is not very harsh this year, so air conditioner sales Brands Retailed Products Sales (%) have considerably gone down. Refrig- Brand LG All products 18 erators sales have increased by 1012 Samsung All products 15 percent. Washing machines are also TURNOVER Whirlpool All home ap10 being sold at this time owing to the ex2010: `22 crore pliances pansion in Surat with several upcom2011: `28 crore All products 15 ing projects in the city. A little later, Panasonic marriage season will start giving fur- Sony All consumer 25 Raju Bhai Shah electronics ther boost to the market. TV, washing 10 IPL was played during school examination time, so there was not much increase Toshiba machines, in the sales. However, Cricket World Cup 2011 was successful in driving the refrigerators sales of LCD TVs up to 40 percent. Washing 2 Challenges from the customers are in terms of after-sales services. In the high Siemens machines, selling season, usually after-sales service tends to be poor. Software unavailabilrefrigerators ity for high-end technology products is another problem. Again 3D players and IFB Washing 5 3D CDs are very expensive and beyond the reach of a common man. machines, In the times to come, Indian market will grow rapidly with new technologies refrigerators developing at short intervals. Dealers will have something new to offer to the customer who is always on the lookout for the latest product. This is particularly true of the consumer electronics segment. In the coming year, conventional color TVs will lose their customer base to LCD TVs. Also, DTH is showing a very strong growth among the customers and will continue to do so.

Bangalore
TURNOVER

Iceberg Systems
2010: `30 lakh 2011: `40 lakh Hari Krisna

The sales in summer this year has been affected due to early rainfall in Bangalore. Air conditioners in the month of May saw a drop to quite a large extent. We are looking forward to better sales and also hope that brands will launch new promotional campaigns to attract the consumers.

Brands Retailed
Brand Whirlpool Godrej Onida Lloyd Products ACs ACs ACs ACs Sales (%) 10-15 30 35 10-15

Secunderabad
TURNOVER

Sree Balaji Enterprises

2010: `1.8 crore 2011: `2 crore S Bala Swamy

Strikes are too frequent in SecunBrands Retailed derabad, which hugely impacts Products Sales (%) the business. This year has been bad Brand All products 80 because of lower sales in summer. The Whirlpool All products 20 competition is also tough. We have to Samsung, come out with strategic plans to at- LG, Daenyx, Videocon, tract the customers. Intex, Sansui Not much growth is expected in most of the segments with the exception of LCD and LED TVs. DTH will witness a growth of at least 25 percent in the coming months.

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Bhatinda
TURNOVER

Jiwan Electronics
2010: `25 crore 2011: `35 crore Jiwan Singla

various products. Consumers in the Bhatinda region are not quite aware of green technologies. Nei- Toshiba ther are the companies making the required effort for the same. Price war among various companies is a big challenge. However, there always remains an underlying opportunity to provide the consumers with the best buy to Voltas enhance our own business growth.

The time has evenBrands Retailed tually arrived when Brand Products Sales (%) the white goods industry CTVs, 5 is on a price hike war. In Videocon refrigerators, the consumer electronwashing ics segment, on the other machines hand, the companies at Godrej 60 Refrigerators, present are competing, to washing madecrease the price even at chines, ACs, microwave the cost of quality of the
ovens LCD TVs, LED TVs, refrigerators, washing machines ACs 10

25

Prices of air condiBrands Retailed tioners, washing maBrand Products Sales (%) chines, and refrigerators LG All products 60 have increased. This is Godrej Refrigera20 prompted by rise in the tors, washing cost of raw inputs: steel, machines copper, and petrol. Panasonic All products 20 TURNOVER Increased sales have 2010: `9 crore driven the prices of LCD TVs southward. 2011: `12.5 crore New launches such as, LED and 3D TVs and a new range of refrigerators and air conditioners from Godrej and LG are Bipin Singhal encouraging. The fast emerging, large-scale retail chains pose a major threat, and opportunities do not seem to be very good. We are looking at having multi-stores.

Mathura

Singhal Sons Electronics Agencies Pvt. Ltd.

There is a 30-percent Brands Retailed decrease in the sales Products Sales (%) of air conditioners. Early Brand LG All products 30 rainfall seems to have adTURNOVER Samsung ACs 10 versely affected the sales 2010: `8 crore ACs 25 of the cooling products Voltas 2011: `10 crore this summer. Hitachi ACs 5 There is a noticeable im- Carrier ACs 10 provement in sales of Panasonic Sanjeev Khurana ACs 10 televisions during sports Electrolux ACs 5 events, particularly during the Cricket World Cup 2011, with sales of LCD and Onida ACs 5 lower end LEDs increasing by almost 20-25 percent. After-sales services for air conditioners are very important, and companies tend to lag behind on their deadline of 2448 hours. Untimely delivery on the part of the manufacturer poses a problem in the high sales season too. With rising disposable income and low penetration in Bihar, the trade is waiting for the monsoons to recede.

Patna

Electronics World

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BUYERS GUIDE
Dealers Speak

Despite it not being very hot this year, cooling products like air conditioners and refrigerators are selling briskly. AC business is in its initial sales phase in places like Indore and Ratlam. There has been a 100-percent growth in the sales of air condition- Brands Retailed TURNOVER ers. Single door direct cool refrigerators of 200 L Brand Products Sales (%) 2010: `12 crore and above are moving fast. LG All products 60 2011: `15 crore The demand for CTVs, flat, and ultra-slim TVs Whirlpool All products 20 has declined with the entry of LCD and LED Panasonic All products 20 Kasim Ali Pathriya TVs in the Indian market. Now, it is the age of 3D and smart TVs. There is expected to be an increase of 1020 percent in CTV sales, the key growth driver being LCD TVs. The major challenge is from modern trade. Brands offer additional discounts to customers at these counters, which mar the business in traditional retail shops as ours. This will have to be countered by adding more stores and aggressive advertising. We are working to improve our customer services and store ambience.

Indore and Ratlam

Ibrahim Brothers

The main challenge that we face from customers is related to competitive pricing and delay in servicing. There is a lot of opportunity in the high-end products, as the customers TURNOVER are shifting from low-end products. 2010: `7 crore They prefer LCD and LED TVs more 2011: `9 crore than CRT TVs and fully automatic washing machines to semi-automatic Rajiv Aggarwal ones. The market condition is not very good. The trend is shifting toward large format stores, so the future does not seem to be very promising for the small stores. Nowadays, the customers want a bigger display and more variety to choose from.

New Delhi

Aggrellios & Company

Brands Retailed
Brand Samsung Whirlpool Toshiba IFB LG ETA General Hitachi Voltas Daikin Products All products All products Audio video products All products ACs ACs ACs ACs ACs Sales (%) 20 20 10 5 5 10 10 10 10

With the late onset of summer and the state elections this summer, sales did not really pick up. Price hike by most brands has also negatively impacted the sales. There is not a very significant effect of sports events on sales. In this season, IPL S Jayaprakash had minimal impact. Cricket World Cup 2011 failed to promote enough sales as well. There is extreme focus on innovation for high-end products in 2011. 3D Cinema (FPD), wonder door (DIOS), and inverter AC (air cooling) are some of the latest products. Having been in this trade for three decades, we have a 3e pronged approach explore, expand, and enterprise.

Chennai

Jayam & Company

Brands Retailed
Brand LG Samsung Panasonic Onida Whirlpool Godrej Sony Others Products All products All products All products All products All products Refrigerators, and ACs All products Sales (%) 15 15 15 12 9 7 7 20

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