TV Industry Faces Sales Decline Amid Rising Costs and Changing Consumer Preferences
TV industry bracing for decline in sales
The Economic TimesImage: The Economic Times
The television industry in India is anticipating a decline in sales due to rising production costs driven by geopolitical tensions and currency depreciation. Consumers are shifting towards smaller screen sizes, although some recovery is expected during the festive season later this year.
- 01Rising costs of materials and currency depreciation are pushing TV prices up.
- 02Consumers are delaying purchases and opting for smaller screen sizes.
- 03Some brands are absorbing costs to maintain market share amidst competition.
- 04Financing options like EMIs are helping sustain demand for larger TVs.
- 05A slight recovery in sales is expected during the festive season.
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The Indian television industry is bracing for a decline in sales, primarily due to soaring production costs driven by rising prices of memory chips, plastics, and ocean freight, exacerbated by geopolitical tensions in West Asia. The depreciation of the Indian rupee has further increased overall production costs, leading to higher retail prices for televisions. For instance, a basic 32-inch TV has seen its price rise from ₹9,000 to ₹11,000. As a result, consumers are increasingly opting for smaller screen sizes, with many downgrading their choices; for example, those looking for a 55-inch TV may now choose a 50-inch model instead. Despite these challenges, some manufacturers, like Super Plastronics Pvt Ltd, are trying to absorb some of the cost pressures to maintain market share in a competitive environment. Financing options, particularly equated monthly installments (EMIs), are helping sustain demand for larger TVs, as nearly 50% of sales occur through such schemes. Analysts expect a slight recovery in sales during the festive season, although the overall demand is projected to fall by 5-6% in the first quarter and 3-5% in the second quarter of 2026 due to ongoing economic pressures.
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Consumers may face higher prices for televisions, leading to delayed purchases and a shift towards smaller models, affecting overall market dynamics.
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