According to Consumer Electronics & TV Manufacturers Association, sales of DVD players are likely to increase by 50% in 2006 and the market is likely to touch 35 lakh units per annum.
KOLKATA: Play this — the DVD player market, which is pegged at 20 lakh units per annum, has swelled by a whopping 195% in 2005. But there’s a pause, too — prices of DVD players fell by 15-20% in the reported period. This price erosion is the greatest among all consumer electronic products and even outdid colour televisions (CTVs), which became cheaper by 8% in the same period.
According to Consumer Electronics & TV Manufacturers Association (Cetma), sales of DVD players are likely to increase by 50% in 2006 and the market is likely to touch 35 lakh units per annum.
The pace of growth is decelerating because it is on a small base, say industry players. “Such high levels of growth can’t be sustained. The 50% growth is actually very high on a small base,” said Rishi Tandon, product and group head, audio, LG. “The price erosion will also sustain,” he added.
Tandon said the market could even swell to Rs 1,200 crore and touch 45 lakh units per annum. The major players in the segment are Philips, LG, Samsung, Onida, Videocon, Sony and Oscar.
Stiff competition has resulted in stringent price cuts over the last couple of years. “Prices of DVD players also fell in international markets, particularly in China, which imports DVD players either in completely knocked down (CKD) form or as completely built units (CBU),” said Suresh Khanna, secretary general of Cetma.
According to Ravinder Zutshi, deputy managing director, Samsung India, “Sales of DVD players have increased phenomenally due to increasing awareness of technology and its acceptance by Indian manufacturers, the easy availability of the software and decrease in software prices.” Zutshi said the erosion in prices was due to a reduction in customs duties and a heightened competition.
The DVD player market is dominated by two variants— 1.5 and 2-channel players. Non-branded manufacturers mostly operate in the latter space.
DVD players, which cost around Rs 3,500-Rs 4,000 contribute 60% to total sales. However, some players like LG and Samsung are trying to boost the market by introducing high-end models.
LG, for instance, is introducing DVD recorders, which are priced around Rs 30,000. Samsung has also unveiled high-end products such as HyperVision DVD and DVD Recorders.
“We want to offer Indian consumers entry-level products as well as products with premium technology,” said Zutshi.
Samsung DVD players are priced in the range of Rs 3,790 to Rs 23,990. LG, too, has priced its DVD player in the similar range.
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