Much like what happened in the smartphone space, Chinese television brands are losing market for the first time in the Indian television market, The Economic Times (ET) has reported. Industry experts said that the change could be due to large electronics brands like LG and Samsung tweaking their strategy for the Indian market and reducing prices for their entry-level products. Chinese companies are focusing on reducing their cash burn and have thus decided to turn away from low-margin categories, causing a drop in their sales, experts told ET.
Three officials from the industry said that Chinese brands like OnePlus and Realme are very likely to soon exit the television market in India or significantly downsize it, the newspaper reported.
Citing data from Counterpoint Technology, ET reported that the TV shipments share of Chinese brands stood at 33.6 per cent in the April-June quarter, down from 35.7 per cent in the same period a year ago. People cited above said that industry sales data indicate a further dip in July and August, with Chinese brands' market share falling to 30 per cent.
What do the experts think?
Analyst at Counterpoint, Anshika Jain, was quoted in the report as saying, "The reason for the decline in the shipments of Chinese brands is due to the consumer preference for the mid-segment and premium models from Samsung, LG and Sony, and also growing interest towards other brands like Sansui and Acer as we have seen frequent upgrades happening in the market, expanding the choices for the customers."
Director of a leading electronic retail chain, Great Eastern Retail Pulkit Baid, told ET that the Indian television market is undergoing consolidation and correction. He said while brands like Lloyd are making aggressive moves, Chinese brands, on the other hand, were focusing on wrapping up their losses.
Chinese brands in the smartphone space
In the smartphone market, Chinese brands have been losing market share for more than four quarters. This is primarily due to Chinese companies exiting the entry-level segment priced below Rs 7,000-8,000. This is happening at a time when Chinese brands are trying to challenge Samsung, Apple and other brands in the mid-to-premium segment to improve their margins, the report stated.
Realme Narzo N53 smartphone goes on sale with introductory offers: Details
OPPO Reno10 Pro Plus, Reno 10 Pro 5G smartphones go on sale: Details here
Narzo N55 goes on sale with introductory offers on Amazon, Realme e-store
Realme 11 Pro series smartphones launch at 12pm: Livestream, expected specs
Realme 11 Pro series smartphones launched in India: Price, specs, unboxing
No reason for Canadian pension funds to back out from India: Official
India Canada row: Tech industry says no immediate areas of concern
Monthly avg rent of warehousing space in Delhi-NCR up by 20% in H12023
As employees return to office, cigarette demand may rise by 7-9% in FY24
Tax sops, flexible payment plans influence prospective homebuyers: Survey
As things stand, Chinese brands still maintain a significant share of the Indian smartphone market. However, things are different in the TV category with fewer Chinese brands, allowing other brands to gain share with relative ease.
Previously, Chinese television brands like Xiaomi, OnePlus, Realme, and TCL had disrupted the Indian TV market by launching products at 30-50 per cent lower rates than established brands like LG, Sony, and Samsung. This resulted in a quick consumer shift to these brands. This led to a situation where large brands discontinued their sales in the entry-level segment, where margins were low and competition was fierce.