percent of the market, The ELCOT procurement is wholly in 14-inch screen size. The mid-size segment had a 46.

7-percent share. With increasing popularity of LCD televisions, the large screen CRT sets have been reduced to a miniscule 1.8 percent market share. Slim and ultra slim TVs have emerged as growth areas in the CRT segment. The major growth for this segment is likely to come from the tier-II and tier-III cities, and rural markets, which are growing significantly.

LCD Televisions

The LCD television market in India in 2010 is estimated at 3 million sets. It doubled itself from 1.5 million sets in 2009. The three brands, Samsung, LG and Sony continue to dominate the segment with a combined market share of 72.5 percent. They are each in the sales vicinity of 0.70.75 million sets. The balance 0.825 million sets are accounted by Videocon, Onida and Haier, among others. With LCD TV sales in India gaining momentum, 2010 will perhaps be the last year that cathode ray tubes can lay claim as the leading television display type in the country on a revenue basis. LCD TV revenues are expected to rise to `12,000 crore in 2011, up by a stunning 60 percent from `7,540 crore in 2010. Having said this, 2010 did not meet the expectations of Indian LCD TV marketers. The consumer, they assert, seemed to be confused between LCD and LED choices. Conversions and upgrades from CRT televisions to LCDs were slow. The year 2011 will find a spurt in sales for two events, the Cricket World Cup and the Diwali festive season. The LED contribution is expected to increase in 2011, with makers rationalizing the prices of this category. In terms of LCD TV sizes, 32-inch models have been the most popular, with a 41-percent unit share. 24-inch or smaller sets accounted for a 36-percent market share. Currently, 21-inch and smaller screen CRTs are the most common televisions in India. For this reason, it is expected that 22-inch and 24-inch LCD TVs will be an important product in the Indian market.

Color Televisions
he Indian CRT CTV market stands at 18 million sets in 2010, registering a decline of 4.6 percent over last year. This is inclusive of 5 million sets supplied to Electronics Corporation of Tamil Nadu (ELCOT) for free distribution by the Tamil Nadu government. LG, Videocon Group brands, and Samsung together account for 50 percent of the volumes market. ELCOT procurement accounted for 28 percent of the CRT market. Onida, at sales of 1.4 million sets, accounted for 7.8 percent. The balance 13.9 percent of the market comprises some national brands, some regional brands, and some wholesale markets like Lajpat Rai in New Delhi and Lamington Road in Mumbai. Panasonic, Haier, Weston, Philips and Salora each in the 2 million sets vicinity, and Sharp, T-Series, Beltek, TCL, Oscar, SVL, MEPL, Futec, and Moser Baer are at sales level of 60,000120,000 sets each. Other brands with presence are Crown, Genus, LB, Daenyx, Jolly, and MEPL. Philips, Toshiba and Akai have recently relaunched their products, and 2011 will be the year to watch these brands closely. Hitachi TV did not have appreciable sales as its products were not available. Intex has launched its CTV models in October 2010. Size-wise sales indicate that 14-inch TVs remained a popular choice commanding 51.5
52 | TV VEOPAR JOURNAL | APRIL 11 | adi-media.com | An ADI Media Publication

Brands

LG dominates the CRT segment with a 20.5percent market share. Its emphasis is the

premium segment has been on full LED LCD television sets. The marketing strategy was woven around the sure-shot combination of Bollywood and cricket. Videocons core strategy in 2011 is to improve the brand image and increase market share. The group has chalked out a bi-polar strategy; wherein premium image will be built through aesthetically and technologically superior products and volumes driven through a frugally innovative range to cater to the mass market. The trade network is being expanded as also more number of exclusive retail outlets, NEXT and Digiworld being added. The company is setting up another new manufacturing facility at Manamadurai. Samsung is looking at growing its CTV sales based on new product and technology introduction; strengthening its product display at multi-brand counters and enhancing penetration in the semi-urban markets. The Onida Group, includes the brands Onida and Igo. On the occasion of having completed 30 years, the company launched a range of innovative products across various categories.

The mantra is to cover every dealer with every product at every time. Panasonic follows a dual strategy for tapping different types of consumer groups. Its product portfolio has a set of products for high-end and also for high-volume segments. Its plasma range is popular. Localization is the route the company follows and 2010 saw new product launches developed for the Indian consumer. With a mission to upgrade the lifestyle of the Indian consumer, the company lays emphasis on eco ieas and eco-friendly products. This year Haier adopted an aggressive marketing strategy as a step to strengthen and combine the brand image in India. You inspire us and John Abraham did wonders for the company image. Haier has expanded its presence in the country with the opening of 85 Experience Centres, and 500-plus planned in 2011. TCL is slowly building a world-class brand by focusing more into its marketing activities. The company is now becoming aggressive in marketing and selling products under its own brand, around the world to completely transit from Made in China to Cre-

ated in China and promote Chinese brands on global basis. The company has launched LED, 3D and Internet LCD for the premium consumer and also made significant inroads in the rural markets, with 70 percent of its contribution from tier II and tier III cities, and rural sector. Philips TVs are fast becoming popular amongst premium consumers. Its flagship model Cinema 21:9 TV, 15 models of LED, eight models of LCD and five models of ultra slim TVs are positioning the company as a highquality premium brand. A unique four year warranty, a free LCD TV and DTH connection clubbed with some premium products are getting attention. Toshiba with its three-dimension strategy for the Indian market, Range, Value and Speed has seven new series with more than 20 models planned for launch in early 2011. 2010 has been the year of channel expansion for Weston. With a total production at Dixon of 1.2 million sets, 950,000 sets as contract manufacturing and 250,000 sets as Weston brand, the company is in an aggressive mode. Lighting, washing machines, and set-top boxes are the other focus areas. Sharp is geared up for robust expansion plan in India in a phased manner. Its Quattron range of televisions is a differentiator and offers four-color TVs, based on proprietary UV2A technology. Akai has an entire range of LCD and LED models for the tier I and tier II cities and competitively priced CRT CTVs for tier II and tier III cities, which Akai markets through its distributors.

Global scenario

The global television market was 247 million sets in 2010, a 17-percent hike over 2009 - the best growth since flat-panel TVs were introduced.

LCD Televisions

LCD continues to dominate the TV market worldwide, accounting for at least half of the total TV market in
An ADI Media Publication | adi-media.com | APRIL 11 | TV VEOPAR JOURNAL | 53

all regions except Asia Pacific. Even with the strong demand growth for LCD TVs worldwide, sales have been lower than as expected by manufacturers, and the resulting rise in global LCD TV inventory during Quarter 3, 2010 has led to more vigorous price erosion during Quarter 4, 2010. LCD TV market is expected to rise from 190 million in 2010 to 215 million in 2011, although an increase in the rate of ASP erosion will lead to the first ever revenue decline in the LCD TV category. Japan has been a spotlight market for LCD TV growth in 2010, with the market forecasted at 22.6 million units, an increase of 80 percent from 2009 due to the Eco-Points stimulus program. That program will end in 2011, so the LCD TV market is expected to fall sharply. European LCD TV market has been fairly robust in 2010, but growth will fall from double to single-digit rates over the next few years. Also in 2011, emerging regions will overtake the developed regions (Japan, North America and Western Europe) in total LCD TV unit volume as the growth focus shifts to the countries with lower flat panel TV penetration. While the worldwide market for TV sets is strong, it has been a tougher road for North America, rising just 0.4 percent through the first three quarters of 2010. As unemployment remains high and consumers remain sensitive to price, budget-conscious consumers have been surprised by limited price declines, partially influenced by a much stronger mix of advanced TV technologies introduced this year like LED backlights, 3D, and Internet connectivity which offset any price declines. A decline in LCD TV panel prices is expected to slow down in Quarter 1, 2011 as a result of better-than-expected TV demands during the year-end shopping season in the US. A soft landing may be predicted, with the average unit price of LCD TV panels expected to fall at a slower rate of US$ 510 per month compared with Quarter 4, 2010. LED backlights have been a key

trend for LCD TVs in 2010, and their penetration into LCD TV market will rise to 20 percent globally due to more attractive pricing, especially in the second half of 2011, with fluorescent backlights taking a back seat. More than two-third of the total market for large-sized LCD panels in 2011 will incorporate LED backlights, up from less than one-half in 2010. An estimated 67 percent of large-sized LCD panels will use LEDs in 2011, compared to 44 percent in 2010. This is possible due to rapid decreases in the premium for LED models from highs of 100 percent during 1H 2010, to less than 50 percent in 2011; for some sizes and frame rates it will fall to nearly 20 percent. LED backlighting is expected to continue to grow in product line representation in the long run due to its energy savings and ability to achieve a thin form factor. Though LED continues to come at a premium, the cost differential will erode and it will gradually replace traditional backlighting in all but low-end models over the time.

has recently helped, forcing many retailers to sell off overstocked units at sale prices. This has resulted in some manufacturers producing less LGPs than their capacity allows. However, this slowing demand is expected to change for the worse in 2011. It is expected that 78 million units of LED LCD TVs will be sold in 2011, double that of 2010, while the edge-type LED LCD market will boom, thanks to increasing demand. The slowdown in production of LGPs could have a detrimental effect on the market when things pick up, as there simply will not be enough to go around. With the market expected to double in 2011, supply of LGPs and raw materials will be essential. To ease the problem some LGP manufacturers are attempting to make slimmer LGPs, which will utilize less raw materials and, therefore, result in more end products. Many LGP makers are still producing the plates with a thickness of 4 mm, despite the ability to lower this to 3.5 mm or even 3 mm and save the extra raw materials for other LGPs. Manufacturers of LGPs are also experimenting with new processes and the development of new materials, which could help the situation. Some are also increasing the brightness of their LGPs, but this is unlikely to have a positive effect on the supply.

LED Televisions

Globally, LED televisions have been the star product of the electronics industry in 2010, mainly due to their picture quality which is far superior to traditional LCD TVs. The original premium price on LED TVs has fallen rapidly, and further price cutting is expected in 2011. LED TVs are expected to take 40 percent of the TV market in 2011, up from 20 percent in 2010 i.e. 49.4 million units, and will ramp capacity 30 percent in 2011 after ramping it 30 percent in 2010. Demand for LED LCD TVs has been on the rise, but sales have been stunted by the fact that key components, such as light guide plates (LGPs), are in short supply. This is set to continue well into 2011, causing concern for many in the industry. Manufacturers of LGP have been attempting to deal with the problem by turning their diffusion plate lines into LGP lines, increasing competition dramatically, but still failing to meet the increasing demand. A slight ease up on demand

3D Televisions

Innovations as 3D were introduced to capture consumers attention and drive strong growth in 2010, but sales of 3D TVs disappointed many brands and retailers at around 3 million units worldwide, largely due to pricing factors. The industry seems intent on reducing the cost of going 3D as well as tackling negative consumer attitudes toward the expense and hassle of active shutter glasses. Standard factors for televisions such as screen size, display thickness, and the quality of image will soon peak, and 3D capability will be added in by manufacturers to compete in the market. 3D TV will continue to pro-

54 | TV VEOPAR JOURNAL | APRIL 11 | adi-media.com | An ADI Media Publication

vide premium brand CE manufacturers with a way to differentiate themselves from the competition and add value for consumers. Toshibas announcement of autostereoscopic or glasses-free technology might be discouraging for some consumers still to get into the new generation of 3D TVs. But the glasses-free technology is still around four years away from being used on large home TV sets. While the long-term market prospects for 3D televisions remain bright, short-term setbacks have caused the consumer electronics industry to re-evaluate the product. At CES 2011 too, the brands chose to deemphasize 3D TVs as a product offering and shifted discussion instead to 3D as a feature to be promoted inside televisions, which consumers can use as a preference. Much of the activity relating to televisions focused on the three types of 3D that will be offered to consumers: active, passive and glassless 3D. Such a range of choices, however, will only serve to create confusion among consumers and further delay purchase plans that buyers might have. An aggressive push could be discerned by some brands toward pattern retarder or passive 3D technology sets. The biggest advantage of these sets is that glasses are easy to wear and prices could be affordable. And although issues exist with passive 3D, they can be overlooked as the technology is thought to provide an adequate 3D viewing experience at affordable prices to consumers. 3D is here to stay, and consumer adoption will increase as prices become more affordable and content becomes available. However, the industrys vision of how 3D will be delivered to consumers is changing. At present, most consumers are unwilling to spend additional money for a television set that lacks content, requires viewers to wear glasses and includes hidden costs such as buying a 3D Bluray player or more glasses. However, positioning 3D as an added feature can empower consumers to choose whether they wish to have access and

use the technology. Also of interest in recent developments is that among television brands that plan to introduce 3D TVs in 2011, many are tier II and tier III brands such as Coby, Hisense and Polaroid. To be sure, the TV market will need some time to perfect both picture-viewing quality and price to fit consumer demand, even as 3D companies continue to innovate and experiment in new areas to keep up with those demands.

its rate of price decline. Plasma TVs were well-suited for consumers purchasing habits in 2010, providing the most affordable large flat panel TVs for many consumers. In addition, the strong industry push for 3D TV helped, as some reviewers and consumers concluded that plasma TV had superior 3D performance compared to LCD TV, at least in terms of flicker. While 3D has not played a big role in the growth of plasma shipments, it has helped to support plasma TV in the competition with LCD TV. With 3D functionality, plasma can re-position itself as a lasting technology in the TV industry. In fact, plasma TV brands are entering 2011 with 3D across their product portfolios, from 42-inch HD to 152-inch.

Smart TV

While Internet-enabled television (IETV) was highlighted in 2010, the term smart TV appeared to be used by every brand despite the differences in definition for the feature. For all intents and purposes, a smart TV seems to be an IETV set with browsing capabilities, either partial or complete, and features an expanded application suite and the availability of a software development kit (SDK) for application developers and advanced remote. The precise definition of a smart TV could be narrowed in time to a number of specific applications-more than likely encompassing Internet browsing, social networking, gaming, health and fitness, and specific platform use. Overall, these sets are seen to improve and offer increased interactivity.

LCD Remain at top of the wish-list

Plasma TV

Demand continues to be very robust in 2010, helped by the fact that consumers are still looking for strong value, and plasma TV has maintained

Despite all the innovations, a continued focus by consumers and manufacturers on affordable low-end and mid-range TVs is expected to drive the bulk of TV shipments. LCD TVs are replacing older CRT TVs for a number of reasons. LCDs take up less space than the bulky tube TVs, consume less energy and are free of the harmful radiation that is emitted from cathode rays in tube TVs. As a result, the sleek, energy-efficient LCD TVs have been at the top of the wish list for many consumers around the world. Research 2011 conducted in February

An ADI Media Publication | adi-media.com | APRIL 11 | TV VEOPAR JOURNAL | 55