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7/28/2019 Dealers Speak
1/13
The dealer fraternity is unanimous on most
issues. While they are upbeat on business
prospects in the long run, the summer sea-
son 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 materi-
als, as, steel, aluminum, and copper, and passed
on some of the cost increase to the consumers.
With increasing disposable income, and consumer-
ism 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 play-
ers, frost free refrigerators, and LCD TV sets are
no longer perceived as luxury items.
New products, advancement in technology, the si-
multaneous launch of new models in India and in-
ternational markets are appreciated by trade and
the consumer. They provide the requisite impetus
to sales.
The dealers are mixed in their response to the mo-
mentum provided by the unabated cricket fever
moving from the ICC Cricket World Cup to IPL sea-
son 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, espe-cially in the fat segment.
Observing the major expansion plans of big retail-
ers 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 chal-
lenge 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, prima-
rily 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 grum-
bled, but only half heartedly and in fewer numbers.
Increasing sales volumes, albeit declining margins,
increase in consumerism, availability of latest tech-
nologies and products, and a bright future was the
response of one and all.
TV Veopar Journalinterviews a cross-sectionof dealers across the country.
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Bhubaneshwar
Raj ElectronicsTURNOVER
2010: `40 crore
2011: `50 crore
On price trends
Prices of LCD and LED TVs
have dropped considerably.
Prices of home appliances in-
cluding 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.
On impact of summerseason on sales
The summer season has not been too harsh on the Indian
subcontinent this year. Sales of air conditioners have al-
most dropped by 20 percent this season.
On fast moving
products
The fast moving prod-
ucts are slim TVs and
lower-end LCD TVs.
On impact of
sports events
Cricket World Cup
2011 had quite a pos-
itive impact, with 50
percent growth in the
LCD TV segment.
IPL, however, failed
to create any signifi-
cant impact.
On new products and technologies
Some of the new products introduced in the market are
smart TVs and cinema 3D LED TVs.
On green technologiesConsumers are responding well to latest technologies.
Sales of star-rated appliances have comparatively in-
creased over the years.
On challenges and opportunities
There is an acute shortage of technical manpower in In-
dia, especially at the time of installation of various prod-
ucts. Also, the after-sales service in every company needs
to be strengthened.
On future outlook
Good growth is expected. Prices are being made afford-
able by the manufacturers.
Brands RetailedBrand Products Sales (%)
LG All products 10
Samsung All products 10
Whirlpool All products 10
Voltas All products 10
Godrej All products 10
Panasonic All products 10
Videocon All products 10
Carrier All products 10
Onida All products 10
Hitachi All products 5
Haier All products 5
PK Biswal
Bangalore
Unilet
TURNOVER
2010: `60 crore
2011: `80 crore
On price trends
The price of home appliances has increased by 5 per-
cent. 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-
ly impacted sales.
On fast moving
products
The fast moving
products at the mo-
ment are LCD and
LED TVs.
On impact of
sports events
Sport events have
a positive impact on sales. A growth of 25 percent wasrecorded 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. How-
ever, the economy is growing and with the increas-
ing 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.
Brands RetailedBrand Products Sales (%)
LG All products 20
Samsung All products 20
Whirlpool All products 8-9
Godrej All products 8-9
Onida All products 3-4
Philips All products 3-4
Sony All products 20
Panasonic Al l products 10
IFB All products 3-4
Humayun Fiaz
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BUYERS GUIDE
Dealers Speak
Ankleshwar
Advancetronics
TURNOVER
2010: `7 crore
2011: `10 crore
On impact of summer season on sales
Business in the month of May has been adversely af-
fected with air conditioners sales reducing by 35 per-
cent. 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 signicant 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
Cinema series 3D
LED launched by
LG is the latest
technology intro-
duced in the world
of television.
On green
technologies
Customers arenow aware ofgreen
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 sell-
ing products at lower prices so that they are able tomeet 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 ourish. The purchasing power of todays youth has
increased and luxuries are fast becoming necessities
so the future looks promising.
Brands RetailedBrand Products Sales (%)
LG All products 20
Samsung All products 20
Whirlpool All products 8-9
Godrej All products 8
Onida All products 3-4
Philips All products 3-4
Sony All products 20
Panasonic All products 10
IFB All products 3-4
Jitubhai Gandhi
Asansol
Reco Electronics
TURNOVER
2010: `12 crore
2011: `15 crore
On price trends
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 be-
come 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 saleshave been recorded in the last two months.
On fast moving
products
The fast moving prod-
ucts are refrigerators
and air conditioners.
On impact of
sports events
A good number of LED
TVs were sold dur-
ing the Cricket WorldCup 2011. IPL has
also driven the sales
to a large extent.
On new products
and technologies
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 greenconscious. Appliances with 5 star rating are being pre-
ferred.
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 signicant growth
of 3035 percent in all segments.
Brands RetailedBrand Products Sales (%)
LG All products 10
Samsung All products 20
Videocon All products 10
Whirlpool All products 20
Godrej All products 10
Sony Consumer
electronics
10
Nikon Digital cam-
eras
8
Canon Digital cam-
eras
8
Hitachi ACs 2
Blue Star ACs 2
Swapan Kumar Choudhury
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Margao
Lotlikar EnterprisesTURNOVER
2010: `8 crore
2011: `1213 crore
On price trends
As demand accelerated, prices spiraled upward. Also,
there has been a significant increase in the cost of steel
and other raw materials, which led to a higher manufac-
turing 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 Go-
drej are fast mov-
ing.
On impact of
sports events
IPL does not drive
significant sales in
Goa. We look for-
ward to football
tournaments here.
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 tele-
vision industry.
On green technologies
The response to green technology is very good. The high-
er the number of stars for any product the more the cus-tomers 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 compe-
tition 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 Products Sales (%)
LG All products 40
Samsung All products 30
Videocon All products 10
Godrej All products 10
IFB All products 5
Whirlpool All products 5
Ernakulam - Kottayam
Pittappillil AgenciesTURNOVER
2010: `75 crore
2011: `110 crore
On price trends
Prices of LCD and LED TVs
are going southward. Price of
the premium range has gone
up to accommodate the ever-
increasing cost of the manu-
facturing material; however,
the end-prices of the economy
range are stable. This ensures
that the brands cater to all
buyers in every category.
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 launch-
es 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 significant ef-fect on the consumers.
People are increas-
ingly looking for high
star rated appliances
and electronics. They
have become cautious
about the benefits
these products pro-
vide in the long run.
On challenges and
opportunities
Higher operatingcosts and lower margins, and requirement of higher capi-
tal investment are some of the major challenges. The cus-
tomers of today look for better showroom ambience and
demand a wider range of products. The high technology
products attracting the customers and the growing in-
come 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.
Brands RetailedBrand Products Sales (%)
LG All products 20
Samsung All products 15Videocon All products 5
Whirlpool All products 10
Godrej All products
other than
furniture
6
Onida All products 5
Philips All products 3
Sony All products 5
Panasonic All products 8
Voltas All products 5
Small appli-
ances
Mixers, juicers
and grinders
18
Peter Paul PittappillilHemant Lotlikar
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BUYERS GUIDE
Dealers Speak
Brands RetailedBrand Products Sales (%)
LG All products 15
Samsung All products 15
Panasonic All products 15
Onida All products 12
Whirlpool All products 9
Godrej Refrigerators
and ACs
7
Sony All products 7
Others 20
Chennai
Jayam & Company
With the late onset of summer and the
state elections, sales did not really pick
up. Price hikes by most brands has also nega-
tively impacted sales. There is not a very sig-
nificant impact of sports events on sales. IPL
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 ap-
proach explore, expand, and enterprise.
S Jayaprakash
Bangalore
Ashok CombinesTURNOVER
2010: `13 crore
2011: `18 crore
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 high-
er in the months of February and March; but there has been
a decrease in the price, by almost 15 percent. In spite of this,
the AC sales have dropped by 2025 percent. A decline in
growth of the AC segment is expected in Bangalore in 2011.
The fast moving products are refrigerators, washing ma-
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.
The reason for good sales is usually attractive schemes for the consumer during
these events. At present there are regular sales.
There is a very good response from the customers on the green technology. Cur-
rently, they prefer 3 star rated products to 5 star rated products due to the sub-
stantial difference in price.
The competition that creates unnecessary confusion is one of the concerns. Differ-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.
This could hamper our image in the days to come. The penetration in the con-
sumer electronics segment is very low. A wide variety of products are regularly
launched, and there is a new technology to sell every time, which creates better
opportunities to grow.
It is a growing market and the consumers have a significant amount of disposable
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.
Sharan Wadhwa
Brands RetailedBrand Products Sales (%)
LG All products 15
Samsung All products 15
Videocon Washing
machines
10
Onida Washingmachines 10
Siemens Washing
machines
10
Hitachi ACs, refrig-
erators
10
Voltas ACs 10
IFB Washing
machines
15
Toshiba Inverter ACs 3-5
Brands RetailedBrand Products Sales (%)
LG All products 100
ChandigarhModern SalesTURNOVER
2010: `11 crore
2011: `13 crore
Our fast moving products include LCD TVs, plasma TVs,
and air conditioners. While one refrigerator is sufficientfor 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.
Both LCD and LED technologies are new to the market.
When LCD TVs were introduced, they were highly priced and
did not find favor with the buyers. With the passage of time,
manufacturers did expand their range to include economy
models.
This year, a growth of at least 2025 percent in this sector is expected. Incentives
are lucrative, but if the gap between the modern retail stores and the dealers con-
tinues to widen, it will create a life threatening situation for our business.
Satish Gupta
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Jaipur
Videon Electronicsand TelevisionTURNOVER2010: `10 crore
2011: `20 crore
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,where people put more stock on the word of
the dealer rather than on the prices of the
modern retail market. This has ensured a
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.
Kamal Kandoi
Brands RetailedBrand Products Sales (%)
LG All products 100
Gandhidham
ShivamTURNOVER
2010: `8 crore
2011: `10 crore
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
and LED TVs sales are
expected to grow with
declining prices. Side-by-
side refrigerators, lap-
tops, and digital cameras
also had good growth. Saturation in these segments is quite unlikely due to con-
tinuous innovation. We expect a 2025 percent growth this year.
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.
Pappu Jaswani
Brands RetailedBrand Products Sales (%)
LG All products 50
Whirlpool All products 35
Onida ACs 8
Carrier ACs 7
Brands RetailedBrand Products Sales (%)
LG CRT TVs, LCD
TVs, refrigera-
tors, washingmachines
30
Samsung Refrigera-
tors, washing
machines,
ACs, CRT TVs,
LCD TVs
20
Whirlpool Washing
machines,
refrigerators
10
Philips CRT TVs 5
Sony LCD TVs 10
Panasonic CRT TVs,
refrigerators,
ACs
10
Voltas ACs 10
IFB Washing
machines
5
Jhumri Telaiya
Chatterjee Sales
TURNOVER2010: `39 lakh
2011: `81.5 lakh
The strong foothold
of dealers in consum-
er electronics segment in
2010 has given rise to a
new retail environment.This in turn is being
shaped by intensifying
the competitive pres-
sure and accelerating the
products life cycle. The
price war, with the entry of new players in the Indian market, can be ad-
dressed 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 con-
sumer electronics industry having become comfortable, the future seems to be
bright.
The lack of a well-developed distribution network makes it difficult to penetratethe fast growing rural economies. For enhanced future growth, there needs to
be an improvement in the distribution network of the semi-urban market.
Sumit Chatterjee
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Dealers Speak
Brands RetailedBrand Products Sales (%)
Samsung All products 40
Godrej All products 20
Voltas ACs 10
Panasonic All products 13
Haier All products 15
IFB Washing ma-
chines, micro-
wave ovens,
dishwashers
2
Lucknow
Sadana Electric Stores
TURNOVER
2010: `16 crore
2011: `18 crore
This summer saw a substantial
depression in demand for cooling
products. Sales have dropped by al-
most 20 percent. There is, however, a
prospect of almost 100 percent growth
in the coming years. With increasing
purchasing power, luxuries are fast
becoming necessities. Moreover, lu-
crative finance schemes would propel
sales to a great extent.
Presently, we face a lot of competition from modern retail. Serious thinking isrequired on this subject. The industry must provide a level playing field in the
entry-level products in each segment, so that the small dealer network not just survives, but also grows.
Devendra Sadana
Brands RetailedBrand Products Sales (%)
TCL CTVs, LCD
TVs, ,washing
machines,
induction
cooker
70
Salora CTVs 10
Haier Refrigerators 10
Whirlpool Refrigera-
tors, washing
machines
5
Onida ACs, CTVs 5
Palwal
A-1 Electronics
PlazaTURNOVER2010: `50 lakh
2011: `60 lakh
Almost every fort-
night a new technol-
ogy is launched in India.
The life cycle of the prod-
ucts, thus, is increasinglygetting shorter. After-
sales service is another
major problem. Adequate
number of service centers
are not present in tier IIManjeet Singh Bhadana
and tier III cities. Brands should also bring in better strategies to promote sales
in small towns. As for opportunity, we have a strong and loyal customer base so
we have a long way to go.
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.
Brands RetailedBrand Products Sales (%)
LG All products 40
Samsung All products 20
Godrej ACs 10
Sansui All products 20
Kelvinator Washing
machines,
refrigerators
10
Visakhapatnam
Sri Rama Electronics
TURNOVER
2010: `3 crore
2011: `3 crore
Summer did not favor sales in
2011. There has been a 30-percent
downfall in the sales of cooling prod-
ucts. We face a serious challenge as we
are losing our customers and there is
tremendous pressure to improve our
turnover. We have to cut down on ourexpenditure and focus on profit.
A number of new products and tech-
nologies have been introduced in theRama Krishna
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.
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Brands RetailedBrand Products Sales (%)LG All products 35
Samsung All products 15
Toshiba All home ap-
pliances
35
Sony All consumer
electronics
products
15
Mumbai
Virani ElectronicsTURNOVER
2010: `8 crore
2011: `8.5 crore
Sales have been poor this summer, with
decline in sales by almost 35 percent.We face tough competition from the modern
retail outlets. The chain retail showrooms
procure products in bulk and get larger dis-
counts from manufacturers. This in turn
leads to lower selling prices at these stores.
There will definitely be a marked growth
in the days to come. Though the incentives
might be lucrative, the increasing gap be-
tween 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.
Sri Virani
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Mumbai
Market Movers
TURNOVER2010: `16 crore
2011: `16 crore
Summer is usually a busy month for selling compressor-
based products. The direct cool refrigerators sales have
shown consistency in performance but the air conditioners
sales have flopped. We do business with small dealers. From
their counters, the sales of air conditioners have reduced byalmost 40 percent. The sales of CRT based color televisions
have shown a clear and definite sign of slowdown in the city
too.
In a mature market like Mumbai, the regular trend, espe-
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-
tors, fully automatic washing machines, LCD and LED TVs, and split air condi-
tioners. These products will continue to grow at a fast pace.
As distributors, we supply entry-level products to the dealers. I have not come
across any breakthrough technology in any of these products. However, cus-
tomers now have become more particular about power rating stars on different
appliances. The LED TVs can be considered as new technology. Customers who
fall in the high-income group are the chief targets who prefer going to chainstores and modern retail formats.
Competition is tough. With brands and dealers competing with each other, the
wholesalers have made the market highly non-remunerative for a distributor.
The operating margins for dealers and distributors are not healthy. Several
dealers have either closed down or converted into brand shops. Presently, the
market is polarized among chain stores, brand shops, and low class dealers.
The need of the hour is to work on distinct strategies for each of these segments
so that every segment survives and grows with the industry. The market is
growing and the industry needs to take an initiative in professionalizing its
sales network by bringing in fair practices. The strategies have to be directed
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 entiresales channel.
The dealers, manufacturers, and micro-financiers need to come together under a tripartite agreement to provide
finance to the needy customer. Zero percent finance is not a solution as it gives finance 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.
Rajendra Malushte
-
Brands RetailedBrand Products Sales (%)
Videocon Refrigerators,
CTVs, wash-
ing machines,
LCD TVs
40
Godrej Refrigera-tors, washing
machines
30
Philips DVD players,
home theat-
ers, speakers
20
Acer Laptops Laptops 2
Kent Puri-
fiers
Water puri-
fiers
3
Haier Refrigera-
tors, washing
machines
5
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BUYERS GUIDE
Dealers Speak
Brands RetailedBrand Products Sales (%)
Whirlpool ACs 10-15
Godrej ACs 30
Onida ACs 35
Lloyd ACs 10-15
Bangalore
Iceberg SystemsTURNOVER
2010: `30 lakh
2011: `40 lakh
The sales in summer this year has been
affected due to early rainfall in Banga-
lore. Air conditioners in the month of Maysaw 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 con-
sumers.Hari Krisna
Brands RetailedBrand Products Sales (%)
Whirlpool All products 80
Samsung,
LG, Daenyx,
Videocon,
Intex, Sansui
All products 20
SecunderabadSree Balaji Enterprises
TURNOVER
2010: `1.8 crore
2011: `2 crore
Strikes are too frequent in Secun-
derabad, which hugely impacts
the business. This year has been bad
because of lower sales in summer. The
competition is also tough. We have to
come out with strategic plans to at-
tract the customers.
Not much growth is expected in most
of the segments with the exception of LCD and LED TVs. DTH will wit-
ness a growth of at least 25 percent in the coming months.S Bala Swamy
Brands RetailedBrand Products Sales (%)
LG All products 18
Samsung All products 15
Whirlpool All home ap-
pliances
10
Panasonic All products 15
Sony All consumer
electronics
25
Toshiba TV, washing
machines,
refrigerators
10
Siemens Washing
machines,
refrigerators
2
IFB Washing
machines,
refrigerators
5
Surat
Pushpa Agencies
TURNOVER2010: `22 crore
2011: `28 crore
Summer in India is not very harsh
this year, so air conditioner sales
have considerably gone down. Refrig-
erators sales have increased by 1012
percent. Washing machines are also
being sold at this time owing to the ex-
pansion in Surat with several upcom-
ing projects in the city. A little later,
marriage season will start giving fur-
ther boost to the market.Raju Bhai Shah
IPL was played during school examination time, so there was not much increase
in the sales. However, Cricket World Cup 2011 was successful in driving the
sales of LCD TVs up to 40 percent.
Challenges from the customers are in terms of after-sales services. In the high
selling season, usually after-sales service tends to be poor. Software unavailabil-
ity for high-end technology products is another problem. Again 3D players and
3D CDs are very expensive and beyond the reach of a common man.
In the times to come, Indian market will grow rapidly with new technologiesdeveloping 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.
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Brands RetailedBrand Products Sales (%)
Videocon CTVs,
refrigerators,
washingmachines
5
Godrej Refrigerators,
washing ma-
chines, ACs,
microwave
ovens
60
Toshiba LCD TVs, LED
TVs, refrigera-
tors, washing
machines
10
Voltas ACs 25
Bhatinda
Jiwan ElectronicsTURNOVER
2010: `25 crore
2011: `35 crore
The time has even-
tually arrived when
the white goods industry
is on a price hike war. In
the consumer electron-
ics segment, on the other
hand, the companies at
present are competing, to
decrease the price even at
the cost of quality of theJiwan Singla
various products.
Consumers in the Bhatinda region are not quite aware ofgreen technologies. Nei-
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
enhance our own business growth.
Brands RetailedBrand Products Sales (%)
LG All products 60
Godrej Refrigera-
tors, washing
machines
20
Panasonic All products 20
Mathura
Singhal SonsElectronics
Agencies Pvt. Ltd.TURNOVER
2010: `9 crore
2011: `12.5 crore
Prices of air condi-
tioners, washing ma-
chines, and refrigerators
have increased. This is
prompted by rise in the
cost of raw inputs: steel,
copper, and petrol.
Increased sales have
driven the prices of LCD TVs southward.
New launches such as, LED and 3D TVs and a new range of
refrigerators and air conditioners from Godrej and LG are
encouraging.Bipin Singhal
Brands RetailedBrand Products Sales (%)
LG All products 30
Samsung ACs 10
Voltas ACs 25
Hitachi ACs 5
Carrier ACs 10
Panasonic ACs 10
Electrolux ACs 5
Onida ACs 5
Patna
Electronics World
There is a 30-percent
decrease in the sales
of air conditioners. Early
rainfall seems to have ad-
versely affected the sales
of the cooling products
this summer.There is a noticeable im-
provement in sales of
televisions during sportsSanjeev Khurana
TURNOVER
2010: `8 crore
2011: `10 crore
events, particularly during the Cricket World Cup 2011, with sales of LCD and
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.
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.
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BUYERS GUIDE
Dealers Speak
Brands RetailedBrand Products Sales (%)
LG All products 15
Samsung All products 15
Panasonic All products 15
Onida All products 12
Whirlpool All products 9
Godrej Refrigerators,
and ACs
7
Sony All products 7
Others 20
Chennai
Jayam & Company
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 signicant effect ofsports events on sales. In this season, IPL
had minimal impact. Cricket World CupS Jayaprakash
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 ap-
proach explore, expand, and enterprise.
Brands RetailedBrand Products Sales (%)
LG All products 60
Whirlpool All products 20
Panasonic All products 20
Indore and Ratlam
Ibrahim Brothers
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-
ers. Single door direct cool refrigerators of 200 L
and above are moving fast.
The demand for CTVs, at, and ultra-slim TVs
has declined with the entry of LCD and LED
TVs in the Indian market. Now, it is the age ofKasim Ali Pathriya
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 aggres-
sive advertising. We are working to improve our customer services and store ambience.
TURNOVER
2010: `12 crore
2011: `15 crore
Brands RetailedBrand Products Sales (%)
Samsung All products 20
Whirlpool All products 20
Toshiba Audio video
products
10
IFB All products 5
LG ACs 5
ETA General ACs 10
Hitachi ACs 10Voltas ACs 10
Daikin ACs 10
New Delhi
Aggrellios & Company
TURNOVER
2010: `7 crore
2011: `9 crore
The main challenge that we face
from customers is related to com-
petitive pricing and delay in servicing.
There is a lot of opportunity in the
high-end products, as the customers
are shifting from low-end products.
They prefer LCD and LED TVs more
than CRT TVs and fully automatic
washing machines to semi-automatic
ones.
The market condition is not very good. The trend is shifting toward large formatstores, so the future does not seem to be very promising for the small stores. Now-
adays, the customers want a bigger display and more variety to choose from.
Rajiv Aggarwal
Edited, Published, & Printed by Anju Arora on behalf of ADI Media Pvt. Ltd. N-49, Greater Kailash-I,New Delhi-110048; Printed at Tara Art Printers Pvt. Ltd. B-4, Hans Bhawan, B.S.Z. Marg, New Delhi-110002.
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