Market Research Onida

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					         A Ranking of Leading CE &
       HA companies based on sales
       turnover in 2008–09 (Rs. crore)
                                         Research conducted in November 2009

               Total Rs. 40,651.83 crore
       Videocon Group-Rs. 9500 crore    PG Group-Rs. 556 crore

       LG-Rs. 8705 crore*               Dixon-Rs. 550 crore

       Samsung-Rs. 6929 crore*          Hitachi Home & Life Solutions-
                                        Rs. 515.76 crore

       Sony-Rs. 1980 crore              JCT Electronics-Rs. 494.33 crore

       Whirlpool-Rs. 1646.71 crore      Kortek-Rs. 488 crore

       Godrej-Rs. 1535 crore            IFB-Rs. 418.11 crore

       Mirc-Rs. 1434.61 crore           Noble-Rs. 415.2 crore

       Panasonic-Rs. 1425 crore         TCL-Rs. 380 crore

       Samtel Color-Rs. 1072.53 crore   Haier-Rs. 325 crore

       Voltas-Rs. 913.75 crore          Carrier-Rs. 300 crore

       Philips-Rs. 805.2 crore          East India- Rs. 262.63 crore

* January-December 2008
Rs. 40,651.83 crore
The Top
                                   he top 22 companies in the Indian           relevant technology they need.
                                   consumer electronics and home ap-

22 players
                                   pliances industry have registered a         Mirc Electronics has lost two places from
                             turnover of Rs. 40,651.83 crore in 2008–09,       Rank V to Rank VII. The company has ex-

                             up from Rs. 35,316.69 crore in 2007–08.           tended its offerings under the Onida brand
                                                                               across products as well as geographical
                             The top three companies – Videocon Group,         boundaries.
registered                   LG Electronics, and Samsung – retained
                             their rankings and increased their respective     Panasonic has moved up significantly from
a 15                         turnover over last year.                          Rank XIII to Rank VIII. The company is ag-
                                                                               gressively targeting to enhance its market
percent                      Videocon Group is focusing on high market
                             potential value and market intensity index
                                                                               share in the Indian market.

growth in                    locations with potential and future prospects
                             to strengthen the business operations and
                                                                               Samtel Color has gained ground, having
                                                                               moved up from Rank X to Rank IX. The

                             product visibility, and ensure widespread         picture tube maker has commenced manu-
                             consumer reach.                                   facturing of ultra slim picture tubes.

over the                     LG is promoting its range Indian Insight          Voltas has increased its reach in semi-urban
                             products that have been designed after years      and rural markets, and sustained its devel-
previous                     of research on consumer behavior.                 opmental thrust.

year.                        Samsung’s performance has been backed by
                             continuous product innovation, sustained
                                                                               With the leading players having delivered
                                                                               reasonably stable performance in the shadow
                             brand building, and innovative advertising        of economic slowdown, they can look forward
                             programs.                                         to a stronger performance as the economy
                                                                               puts slowdown behind, in the process also
                             Sony has moved up from Rank VII to Rank           covering for any dip that might show up in
                             IV. The company has discontinued sales of         their balance sheets for the next fiscal on ac-
                             CRT televisions and is staying focused on         count of some part of the fiscal having been
                             categories which have high growth potential       impacted by slowdown.
                             in the Indian market.
                                                                               This is based on the market research con-
                             Whirlpool has slipped from Rank IV to             ducted by the TV Veopar Journal team,
                             Rank V. The company’s key focus areas to          based on CE & HA sales. Sales turnover has
                             maintain profitability are reducing cost and      been defined as net sales, i.e. sales minus
                             improving efficiency.                             excise duty. Revenue from other income has
                                                                               not been included, neither has the turnover
                             Godrej retained its last year’s position of       of other divisions of the companies. Compa-
                             Rank VI. The company’s emphasis is on             nies with turnover above Rs. 250 crore have
                             constant innovation to connect with the           been considered for the ranking, with 22
                             ever evolving consumers and offer them the        companies making it to the mark.

48 | TV VEOPAR JOURNAL | APRIL 10 | | An ADI Media Publication
                               Color Televisions
                                                 Research conducted in February 2010

       he Indian CTV market is estimated          innovative features like Internet TV, wire-
       at 17.19 million sets in 2009 with 5       less solutions and full LEDs in 2010.
       percent marginal growth over last          Samsung registered sales of 2.16 million
year. This is inclusive of 5 million sets sup-    sets in 2009. The company is celebrating
plied to Electronics Corporation of Tamil         the sale of one million Flat Panel TVs
Nadu (ELCOT) for free distribution by             by launching a Thanks a Million offer
the Tamil Nadu government. In 2008, the           campaign in its Flat Panel TVs, digital
CTV market stood at 16.38 million sets – a        still camera and camcorder category. The
growth of 0.81 million sets over last year.       company is looking to growing CTV sales,
The market is dominated by Videocon, LG           based on new product/technology intro-
and Samsung. Size-wise sales indicate             duction; strengthening product display at
that market was dominated by 14-inch              multi-brand counters and enhancing pen-
TVs due to the ELCOT order, and 21-inch           etration in the semi-urban markets.
Flat TVs.
                                                  The Onida Group, which includes the
Videocon Group held the leader position           brands Onida and Igo, registered sales
in the industry, with sales of 3.6 million        of 1.30 million sets. Onida replaced its
sets in 2009, which included one million          ad campaign of the devil with a new one,
sets to ELCOT. The group holds 20.93              featuring a new-age couple. With the new
percent share of the total market. Videocon       focus, the firm is doubling its advertising
has launched a new logo for their brand.          and marketing spend on new campaigns
They have also introduced the retail chain        for its products. The company wants to
Digiworld and Digihome. In the Flat TV            present itself as a cross-category player,
category, the group launched televisions          and distance itself from its earlier image
with EcoVision Technology along with a            of just being a television company.
range of 5-star rated TVs.
                                                  Panasonic’s sales stood at 0.30 million
LG registered sales of 3.48 million sets,         sets. The company is focusing on bring-
contributing a share of 20.29 percent             ing its products closer to the consumer
towards the total market. The company             and providing a unique retail experience.
plans to launch many new products with            This is being done through expansion of

                        An ADI Media Publication | | APRIL 10 | TV VEOPAR JOURNAL | 49
                             brand shops and also through multi-brand          to-be-launched aggressive sales promotion
                             outlets, backed by product and strategic          schemes.
                                                                               Markson’s sales were estimated at 60,000
                             TCL registered sales of 0.26 million sets.        in 2009. During the year 2010, the com-
                             The company plans to launch models with           pany expects 25 percent market share for
                             superior aesthetics and features and ex-          its Flat Panel TVs.
                             pects to do around 25-30 percent sales from
                                                                               Sharp’s strategy for business expansion,
                             the Slim TV segment alone. TCL sales
                                                                               include growth and profitability, energy
                             constitute only CBUs (completely built
                                                                               conserving and environment-friendly
                             units) imported from China.
                                                                               products, and spreading awareness about
                             Sony achieved sales of 40,000 sets. The           Sharp technology and products among
                             company exited the CTV segment after              trade partners and consumers.
                             February 2009 so 40,000 sets were sold
                                                                               Beltek has a network of 4000 dealers
                             only in two months
                                                                               and distributors. The company targets a
                             Philips sales stood at 160,000 sets. The          growth of more than 15 percent in the CTV
                             company is looking at expanding its retail        segment. Currently, they have 32 CTV
                             presence by improving the display and             models in various sizes.
                             presentation of its consumer electronics
                                                                               With the introduction of CTVs, Moser
Slim TVs and                 and kitchen appliances products by tying
                                                                               Baer was able to penetrate the B and
                             up with major multi-brand retail outlets
Ultra Slim TVs               to create special Philips zones.
                                                                               C class towns. They have also placed
have emerged                                                                   their products in all major modern retail
                             Haier registered sales of 160,000 sets. The       stores. In CRTs, they introduced a range
as growth                    company’s distribution strategy would             of seven new models in the 14 and 21-inch
areas in the                 include a mix of direct, distribution and         segment.
CRT segment, with            modern retail formats.
                                                                               Globally CRT television revenue is set to
their contribution           Weston’s sales stood at 150,000 sets. The         drop by USD 2.5 billion for the year as
to the segment               company strives for greater customer              consumers continue to favor flat-panel
projected                    satisfaction by improving their quality           displays. Continued cost reductions are
                             through and adhering to six sigma quality         making LCD panels more cost competitive,
to increase                  benchmark.                                        hurting sales of plasma sets and CRTs.
substantially.                                                                 Furthermore, some of the leading suppliers
                             T Series achieved sales of 125,000 sets in
                                                                               no longer foresee plasma and CRT gener-
                             2009. In terms of CTV sales in 2010, the
                                                                               ating sufficient sales growth to continue
                             company has set a target of 50 percent
                                                                               investing in the technology.
                             growth over last year. The company plans
                             to launch strong media campaigns for their        In India, the emphasis laid by the man-
                             LCD TV and Slim TV range.                         ufacturers on improving efficiencies,
                                                                               strengthening after-sales service, price
                             Daenyx’ s achieved sales of 90,000 sets.
                                                                               reductions without compromising qual-
                             The company is focusing on increased
                                                                               ity, etc. has resulted in increasing the
                             penetration in rural areas by giving free-
                                                                               consumer base for CTV in the rural and
                             bies to consumers, offering foreign trips
                                                                               semi-urban markets.
                             to trade partners, strengthening their
                             relationships with distributors and dealers       Slim TVs and Ultra Slim TVs have
                             through meets and exhibitions.                    emerged as growth areas in the CRT
                                                                               segment, with their contribution to the
                             LB Electronics sales stood at 90,000 sets
                                                                               segment projected to increase substan-
                             with focus on both its brands, Texla and
                                                                               tially. The major growth is likely to come
                             Bestavision. The company is focusing on
                                                                               from the tier-II, tier-III cities and rural
                             getting OEM business from top compa-
                                                                               markets, which are growing significantly
                             nies to leverage the setting-up of their
                                                                               and have been less impacted by the global
                             state-of-the-art manufacturing plant in
                                                                               slowdown. With these markets showing a
                                                                               preference for flat and conventional TVs,
                             Salora sold 80,000 sets. The company aims         the demand for these categories is likely
                             to double its market share through soon-          to be sustained.

50 | TV VEOPAR JOURNAL | APRIL 10 | | An ADI Media Publication
                                    LCD Televisions
                                                Research conducted in February 2010

       he Indian LCD TV market is estimat-       than 40-inch constitutes 20 percent. This is
       ed at 1.5 million sets in 2009, having    in line with the numbers for other players
       nearly doubled from 0.85 million sets     across the various size segments. However,
in 2008. The three brands Sony, Samsung          the 22-inch Sony LCD TVs sales are below
and LG continue to account for 80 percent        the industry numbers, while the 26-inch
of the market.                                   sales are more than the industry average.

Samsung remained on top with sales of            LG had sales of 350,000 LCD televisions in
480,000 LCD TV sets. The company is tar-         2009. LG marketing strategy was focussed
geting a 40 percent market share in this         on establishing LG as premium brand in
category this year. Samsung also plans to        LCD business, with the launch of product
launch new models in LCD and LED TVs             ranges like Jazz Theatre and Jazz Atom.
in the Indian market, including the intro-
duction of 3D televisions in LCD, LED and        The Videocon Group is planning to launch
Plasma television ranges                         LCD TV (Smart TV) with an in-built PC
                                                 which will enable consumers to use the
Sony India sales stood at 380,000 LCD            LCD as an infotainment device. The com-
televisions in 2009. It has identified the       pany is constantly formulating new mar-
BRAVIA LCD TV brand as one of the key            keting strategies to strengthen its focus
growth drivers. The company is focusing on       across the markets and increase market
enhancing the brand image this year with         share. Sansui LCD was one of the main
significant ATL and BTL activities that          areas of focus. In 2010 Videocon has lined
involve print and electronic media, online,      up a new range of LED TVs for IPL and
outdoor and the shop-front. For maximiz-         FIFA World Cup.
ing its reach to its target customers, Sony
has strengthened its distribution network        Panasonic introduced plasma and LCD
of branded stores and dealers.                   televisions in their Viera range. The com-
                                                 pany is adopting an aggressive two-fold
The 32-inch LCD TVs of Sony comprises 50         strategy, based on product innovation
percent of the company’s total sales, 26-inch    and marketing promotion. The company
20 percent, 22-inch 10 percent and greater       believes that its new product line-up,

                       An ADI Media Publication | | APRIL 10 | TV VEOPAR JOURNAL | 51
imbued with a high level of product          market share for its flat panel TVs.      Despite growth of LCD TVs and
innovation combined high-voltage             Another player, Daenyx’s LCD TV           the return to positive Y/Y growth
marketing promotions act as a cata-          sales have been growing sharply.          overall, revenue growth continues to
lyst in increasing consumer-interest                                                   be elusive. Total TV revenues were
and revenue.                                 The institutional segment is provid-      down for the fourth straight quarter,
                                             ing the stimulus to this market. A        falling 10 percent Y/Y to USD 26.2bn.
Sharp will strengthen the product            surge in demand for LCD TVs is be-        For the LCD TVs segment, the spread
line-up in LCD televisions during            ing witnessed in airports, hospitals,     between unit growth and revenue
the current year to cater to a vari-         hotels, and retail outlets. The TV        growth was even more dramatic; as
ety of customer needs. India is one          companies are bullish about this          worldwide LCD TV revenues grew
of the key priority destinations for         segment as the institutions look to       just 1 percent Y/Y compared with 38
future growth plans of the Japanese          enhance their services and ambience       percent Y/Y unit growth.
company. The company has firmed              by featuring premium products.
up a massive expansion plan of its                                                     Samsung remained the global brand
dealer network and expects higher            India’s LCD TV market is on the           share leader in terms of revenues for
sales and further penetration in             cusp of an explosive growth path,         the fifteenth straight quarter. LGE
the market. The network would be             with year-on-year growth of more          remained at number two for the
expanded to newer cities, which is in        than 100 percent expected for each        second straight quarter, surpassing
line with the company’s plan to take         of the next five years. Requisite         Sony in Q1 2009, but saw a slight
the brand to the interiors.                  impetus is being provided by the          decline in share to 12.9 percent.
                                             enhanced purchasing power in India,
TCL India, has been working to-              the digital broadcast (DTH, IPTV,         Chinese Market: China remains a
wards leveraging the Asian Games             STB cable) transition as well as the      very competitive market, one domi-
to be held in China, of which it is          heightened consumer awareness and         nated by domestic brands. The top
the official sponsor, for visibility and     the increasing affordability of flat      six LCD TV brands on a unit basis
brand awareness. The companies               panel TVs.                                are all Chinese, and collectively ac-
CTV product mix for 2010 would                                                         counted for nearly 80 percent of all
consist of hi-end LCD’s, premium             Globally, LCD TVs have been en-           units shipped in the region in Q2
and mid-range Slim CTV’s and Flat            joying strong growth all year after       2009; they are also strong export-
CTV. The company plans to launch             becoming the leading technology on        ers. The LCD TV market continues
24-inch LCD in the month of April.           a unit basis, but their growth has        to accelerate, growing 106 percent
                                             not offset the rapid decline in ship-     Y/Y in Q2 2009, reaching 18 percent
Haier‘s revolutionary MO Card                ments of CRT TVs until now. LCD           of the worldwide LCD TV market.
series LCD’s offers customers the            TV shipments worldwide increased          Skyworth was the top LCD TV brand
facility of updating the same LCD            38 percent Y/Y, to reach a record 37.5    at nearly 20 percent unit share, but
with new features and technologies,          million units. Government stimulus        was followed closely by Hisense,
as and when available.                       programs in China and Japan, as           TCL rounded out the top three with
                                             well as continued high levels of price    15 percent unit share. Many foreign
2009 witnessed the entry of re-              erosion, contributed to excellent unit    brands are eager to gain a foothold
gional brands including T-Series and         growth in LCD TVs, with double            in China’s rapidly growing market,
Weston into the LCD segment. They            digit Y/Y growth in every region          but must compete with lower-cost
have chalked-up aggressive mar-              except Eastern Europe.                    Chinese brands to do so.
keting and distribution strategies.
SNR Electronics expects 25 percent              The strong unit demand from con-       Televisions have evolved from bulky
                                                           sumers is predicted upon    to sleek and, in the process, have
         Q3 2009 Worldwide TV Shipments                    attractive retail prices    become more eco-friendly. The new-
                  by Technology (’000s)                    in the current economic     est generation of LCD sets uses the
Technology Q3’09           Q3’09       Q3/Q2    Y/Y Growth
                                                           environment, but manu-      more energy-efficient LED, as a light
                Units Unit Share (%) Growth (%)     (%)    facturers and retailers     source for the picture rather than the
 LCD TV        37,514       68.4         24          38    cannot keep absorbing       traditional fluorescent bulbs. Fuelled
                                                           the price erosions in-      by growing aspiration levels and de-
 PDP TV          3,594        6.5        17          -5
                                                           definitely, as production   sire for enhanced television viewing
 OLED TV            0.2       0.0       -72         -82
                                                           costs tend to fall slowly   experience at the consumer end and
 CRT TV         13,725      25.0         20         -41
                                                           and new introductions       continuous technological advances,
 RPTV                33       0.1        -3         -64    of advanced features are    consumer promotions offers and
 Total          54,867       100         22           1    predicated on modest-to-    declining end consumer prices, LCD
 Source: DisplaySearch                                     high price premiums.        TV market is poised to grow.

52 | TV VEOPAR JOURNAL | APRIL 10 | | An ADI Media Publication
                                                  DVD Players
                                                    Research conducted in January 2010

       he DVD players market is in a             of being competitively priced, now qualify
       transition phase. The increasing          for impulse buying. The private labels of
       popularity of DTH is posing stiff         these stores are contributing to overall
competition to the DVD players market.           DVD player sales.
With the availability of more than 100 en-
tertainment and news channels and movies         Blu-ray disc has now been accepted as the
on demand, DTH services are gradually            next generation optical disc standard. It
eating out from the DVD players market           is expected that the global lesser focus on
share pie and experts feel that this trend       Blu-ray shipments will exceed 28 million
shall continue in the times to come.             devices in 2011. In a war of sorts between
                                                 major Hollywood studios for the adapta-
The market balance is shifting from the          tion of either the Blu-ray format or the
larger brands to the smaller regional            HD format, the former won hands down
brands for this extremely price competi-         with most studios in favor of it. With its
tive product. Constantly declining margins       high storage capacity, Blu-ray discs can
have forced larger players to have the DVD       hold and play back large quantities of
players market and move toward more              high-definition video and audio, as well
profitable categories, thus benefiting the       as photos, data and other digital content.
smaller or regional players.                     Blu-ray is currently supported by about
                                                 200 of the world’s leading consumer elec-
With the Class A and larger Class B cit-         tronics, personal computer, recording
ies almost having reached saturation in          media, video game and music companies.
demand, the manufacturers are finding            India too, the demand for these players is
smaller Class B and Class C cities more          slowly catching up.
lucrative. It is also moving from a retail
type of business to a distributor led sales.     The market for DVD players is witnessing
Modern retail stores continue to be a sig-       many technical innovations—DVD play-
nificant sales channel for DVD players with      ers with recorders, portable DVD players,
Koryo in e-Zone stores having maintained         and the latest DVD players incorporating
its sales of 92,000 players in 2009 in a         Blu-ray technology. The major sought-after
declining market. DVD players, by virtue         features in DVD players that most consum-

                       An ADI Media Publication | | APRIL 10 | TV VEOPAR JOURNAL | 53
                             ers consider before making a purchase are         followed by live demos to attract customer
                             USB/MMC playability, FM, and HDMI                 attention. The company has also recog-
                             port for a high definition digital output.        nized potential locations future prospects
                                                                               to strengthen the business operations and
                             Indian Market Dynamics                            product visibility, to ensure a wide-spread
                             The Indian DVD players total market size          consumer reach.
                             is estimated at 6.2 million units in 2009.
                                                                               Onida recorded sales of 450,000 units,
                             The market has decreased by 11.5 percent
                                                                               capturing 9 percent market share. Keep-
                             from 7 million units in 2008. The organized
                                                                               ing in touch with technology, Onida DVD
                             segment comprises 80 percent of the mar-
                                                                               players are equipped with the playability
                             ket. The unorganized segment, including
                                                                               of MPEG-4 video and high compressed
                             the gray market continues to contribute
                                                                               video in Xvid format standard with which
                             almost 20 percent.
                                                                               the whole movie in good resolution can fit
                             LG remains the leader with a sale of 1.1          into a normal CD. The Onida DVD play-
                             million units, capturing a market share           ers have high error correction technology
                             of 22 percent. LG is currently emphasiz-          which plays the scratch disc effortlessly.
                             ing on focused marketing of Blu-ray DVD           Onida DVDs have the same technology as
                             players. Its Blu-ray disc player, BD 370,         most LCDs. Four of its DVD players are
                             offers features like last scene memory,           empowered with progressive scan technol-
                             DTS-HD—advanced digital out, 2 soft               ogy to give the best picture clarity while
                             scan, 100 high speed smooth scan, Dolby           viewing. The consumer can enjoy the feel
                             Digital Plus, 1080p up-conversion, and            of a theater, sitting at home as it allows us
                             Dolby TrueHD.                                     to have virtual 5.1 surround sounds even
                                                                               by taking the 2 channel audio input from
                             Philips registered sales of 850,000 units.        the audio CD/MP3/VCD. With the Onida
                             In September 2009, Philips announced a            DVD player, windows media audio files
                             big move into the Blu-ray category with a         and other formats like MP3 and ACD can
                             complete range of Philips Blu-ray players         also be played.
                             and home theatre systems. It has looked at
                             the understanding and perception of Blu-          Samsung achieved sales of 300,000 units
                             ray and developed a totally new ecosystem         in 2008-09. It offers excellence in HD
                             that will help broaden Blu-ray’s appeal in        DVD players with boasting features like
                             India and greatly extend the range of titles      HDMI, 1080p up-conversion, Touch of
                             available. The launch has enabled Indian          Color design and USB for easy connection
                             movie fans to enjoy the latest Bollywood          and CD-ripping. Samsung standard DVD
                             blockbusters on Blu-ray and get the full          players can play any DVD, regardless of its
                             cinema treatment through a series of deals        condition. Its rolling actuator technology
                             that Philips arranged with India’s leading        automatically adjusts the lens angle so
                             production houses.                                that it can read the information stored in
                                                                               the disc with 100 percent accuracy.
                             Videocon registered sales of 500,000 units.
                             Apart from launching combi offers like            Sony, with sales of 250,000 units, is focused
                             DVD player with Slim TV or FPD, the               on providing excellent picture and sound
                             company is focusing on in-shop display            quality for a first-rate viewing experience.
                                                                               Sony’s Precision Cinema Progressive sys-
                                                                               tem can detect image changes at the pixel
                                     The market balance                        level, resulting in images close to the origi-
                                                                               nal source data to provide vivid pictures,
                                         is shifting from the                  even with damaged DVDs. Recognizing
                                       larger brands to                        other formats like MP3, the DVD players
                                        the smaller regional                   can also play audio tracks, and support a
                                      brands for this extremely                variety of other formats. Its DVP-NS628P
                                                                               DVD player features Precision Drive 3,
                                       price competitive                       DivX, JPEG and MP3 playback via USB
                                             product.                          connection. Another model, DVP-SR650P
                                                                               features Progressive Scan, TV Virtual

54 | TV VEOPAR JOURNAL | APRIL 10 | | An ADI Media Publication
Surround, Dolby Digital 5.1 channel, DTS        of the company’s total sale. Keeping the
Decoding and DivX playback with USB             market in view, many features have been
compatibility.                                  designed. The key features are provision
                                                for DC battery, robustness, and capability
Godrej has a market share of 4 percent          of withstanding power fluctuations in the
with sales of 200,000 units. It is offering     range of 90–340 VAC.
607 A with USB ripping function, Music
Mode+, 5.1 multi-channel audio output,          TCL sold 100,000 units in 2009. India is
progressive scan, digital coaxial, optical      one of the most important markets for TCL.
output and power off resume.                    TCL’s manufacturing units are in China,
                                                Thailand, and Malaysia. India imports all
Moser Baer closely follows Godrej with          TCL products from these countries. The
sales of 180,000 units. It currently has nine   company’s DVD players are imported from
models of standalone DVD players, inclu-        the manufacturing unit in China.
sive of three exciting models of portable
DVD players. All models support USB             Markson achieved sales of 100,000 units.           With the
interface and 5.1 channel output.               It has launched Bigben with FM Radio
                                                with 20 pre-set channels. It has a built-
                                                                                                   Class A and
Intex registered sales of 150,000 units. It     in amplifier and is compatible with high           larger Class B
has a diverse portfolio of DVD players that     speed USB Ver 2.0.                                 cities almost
comprises 11 models. The features include                                                          having reached
DivX compatibility, USB playability, 5.1        Daenyx has registered sales of 36,000
channel configuration, superior error cor-      units. Its product portfolio comprises four        saturation
rection, a full-function remote control,        models which include one model without             in demand,
                                                amplifier and three models with amplifiers.
Dolby ProLogic II, and multi-lingual selec-                                                        the manufacturers
tion, to name a few. Along with feature-        The company’s USP is their sleek designs
richness, variety and technology, Intex’s       and LED display.                                   are finding
reach and a wide-spread service network                                                            smaller Class B
                                                Other aggressive players in the orga-
(more than 80 service points) across the
                                                nized segment include Panasonic, Beltek,
                                                                                                   and Class C
country are some of its USPs.                                                                      cities more
                                                Bestavision, DMS, Oscar, Salora and
T-Series registered sales of nearly 110,000     Texla. The unorganized segment has many            lucrative. It
units of DVD players during 2009. North-        brands including Pride, Futec, HVL, Pan-           is also moving
ern India remained the strongest region         orama, Santosh, Universal, Beston, Konec,
                                                and Bush.                                          from a retail type
for the company as its accessibility and
penetration is substantial in this region.                                                         of business to
Its focus was more on rural areas, since        Global Market Dynamics                             a distributor led
the rural economy was not affected much         The worldwide HD DVD players/record-               sales.
by slowdown. T-Series revamped its entire       ers shipments will increase at a CAGR
range of DVD players during 2009 and            of over 54 percent during 2009–2012.
introduced around 10 new models with            Future demand for DVD players, which
beautiful aesthetics and features like          are essentially commoditized products, is
USB, MMC, and FM. The company has               expected to stem largely from developing
positioned its DVD players for the rural        markets in the Asia-Pacific region, where
markets which account for 60 percent            household penetration of DVD continues to
                                                be small. Moreover, Japan, US and West-
                                                ern Europe will fuel growth in the DVD
     The major sought-after                     recorders markets, while Eastern Europe
     features in DVD players                    is expected to drive opportunities in the
    that most consumers consider                DVD players market.
      before making a purchase
    are USB/MMC playability,                    The Road Ahead
                                                Is the DVD player market going the Black
     FM, and HDMI port for a                    & White TV and VCR way? That is a mat-
    high definition digital                     ter of concern for India manufacturers who
              output.                           have committed their funds to world class
                                                Manufacturing facilities.

                                                  An ADI Media Publication | | APRIL 10 | TV VEOPAR JOURNAL | 55
                                                                                  Research conducted in April 2009

                                    he Indian refrigerator market is           Haier is the preferred supplier for beverage
                                    estimated at 5.9 million units in          giants Pepsi and Coke, meeting almost 60
                                    2008–09. Rural and semi-urban mar-         percent of their requirement in India. Hi-
                             kets emerged as significant contributors to       tachi has a presence in the niche, above-300
                             industry growth. With these markets being         L frost free category and registered sales
                             less impacted by the slowdown, players            of 16,500 units. Gem operates only in the
                             are sprucing up their presence in the rural       direct cool segment with sales of 65,000
                             areas, and tier 2, 3, and 4 towns to garner       units. The company would be introducing
                             a share of this pie and increase bottom           its frost free range in June 2009. Panasonic
                             line. Another growth avenue is the replace-       has a presence in both the segments and
                             ment market. Exchange and promotional             has set for itself a target to consolidate
                             schemes are being introduced to facilitate        its position in the frost free segment only
                             replacement. The fast-catching concept of         within the next two years. Sharp has a
                             second and third refrigerators in the Indian      presence in the frost free segment and aims
                             market is throwing up opportunities for           to enhance its presence in the Indian mar-
                             smaller capacity refrigerators.                   ket on a sustained basis. Voltas, Toshiba,
                                                                               Siemens, Indesit, Sanyo, and Daewoo also
                             The market was dominated by top five              have a presence in the Indian refrigerator
                             brands, accounting for more than 95 per-          market.
                             cent share. LG led the pack with 23 percent
                             share. Samsung and Whirlpool shared the           Direct cool segment, accounting for 68
                             second spot with 19.49 percent shares each.       percent of the market, continued to be the
                             Godrej and Videocon Group were not far            volume driver. The frost free segment is
                             behind, with 17.8 and 16.27 percent market        the focus area for leading players who are
                             shares respectively. Within the Videocon          aiming to increasing the contribution of
                             Group, Videocon brand contributed 66.67           this segment to their overall refrigerator
                             percent, Kelvinator had a share of 31.25          sales. It is interesting to note that it is the
                             percent, and other brands accounted for           ranking of this segment that coincides with
                             the balance.                                      the ranking for the industry.

56 | TV VEOPAR JOURNAL | APRIL 10 | | An ADI Media Publication
The direct cool segment witnessed stiff        Other than big family-size refrigerators,
competition among top five players. Godrej     smaller under-counter refrigeration, wine
and Videocon Group emerged the leaders         storage and ice machines are making their
with 20.48 percent market shares each.         presence felt as they are used not only
Samsung and Whirlpool shared the second        in the primary kitchen but in secondary
spot with 18.55 percent shares each. LG        kitchens, bar areas, outdoor kitchens and
was close behind, with market share of         even bedrooms. Another category, though
17.97 percent. Other players together had      not very visible in India, is modular built-in
a contribution of 4 percent.                   refrigerators. This modular approach fits
                                               into a trend toward urban living. For urban
In the frost free segment, LG was the leader   citizens, there is often less interest in hav-
with more than 34 percent market share.        ing an oversized kitchen and refrigerator.
Whirlpool and Samsung shared the second        Built-in refrigerator and freezer columns
position with 21.51 percent shares each.       can also be custom paneled with one’s own
Godrej commanded a share of 12.03 per-         cabinetry. The look is seamless, creating a
cent. Videocon Group rounded off the top       clean and modern atmosphere as well as a
five with 7.22 percent share. Other players    great discussion topic. Hidden hinges on
in the segment contributed 3 percent.          freestanding units, colored sides that offer
                                               a built-in look without the cost, and quieter
Region-wise, South India earned the honors     operation show how advanced technology in
of being the leading revenue earner for the    the refrigeration segment has become.
industry, being the leader in overall sales
and also in both the segments, followed by     Healthy food preservation and hygiene
North. Significantly, both South and West      are the key areas receiving attention,
recorded more sales in the premium frost       with the market flooded with a plethora
free segment than the industry volume          of technologies for maintaining nutrition
driver direct cool segment.                    and freshness of both cooked and uncooked
                                               food. Food items can be stored at different
Across both the categories, energy rating      temperatures and humidity levels specific
has become prominent with the industry         to food requirement; there are technologies
introducing more and more star rated           to generate positive and negative ions to
products.                                      inactivate airborne mold spores and reduce
                                               odors arising from propagation of mold; care
The frost free segment is graduating be-       is taken to ensure that odor from one food
yond the traditional two-door refrigera-       item should not travel to another; humidity
tors and now offers sophisticated models.      is maintained so the food item stays fresh
French door, side-by-side, bottom-freezer      longer.
models are becoming popular. French-door
bottom-freezer models feature shelves that     Water and ice dispenser options and hy-
span the entire interior with no center        giene features such as ionizers, silver ion
divider, so items such as large platters,      coatings, antibacterial carbon filters, and
baking pans, and cookie sheets can be ac-      blue lights are being used extensively.
commodated easily. Bottom freezer refrig-      Compartments with precise temperature
erators are conceptualized on the premises     and humidity adjustments for increasing
that domestic refrigerator users hardly use    food storage times are another value-added
the freezer as often as they use the main      feature offered by many manufacturers.
compartment. Placing the main section at       Various compartments and accessories such
eye level reduces the number of times one      as folding wine racks, sliding shelves, and
bends to reach out to vegetable tray and       storage bins under door racks allow better
other shelves low down in the compart-         interior volume utilization. The high-end
ment to minimum. This allows consumers         refrigerators feature multipurpose com-
to make the best use of fresh vegetables as    partments offering customized temperature
they will be more inclined to reach out to     control, so consumers can make the most
them and incorporate them in their diet if     of their refrigerator by converting the com-
they are at eye level. This also allows them   partments to meet their immediate needs.
to have a better idea of what food they have   The same compartment can act as both
and can utilize.                               refrigerator and freezer.

                                                 An ADI Media Publication | | APRIL 10 | TV VEOPAR JOURNAL | 57
                             With culinary habits varying across the           lar refrigerator with individual compart-
                             globe, the refrigerator industry continually      ments for people who live with several
                             presents innovations in sync with local           roommates. Flatshare consists of a base
                             cooking and refrigeration requirements.           station and up to four stackable modules.
                             In China, Electrolux Home Appliances              The modules allow each individual user to
                             China Co. Ltd. has introduced fast chill          have his or her own refrigerator space and
                             refrigerator that uses a dynamic cooling          can be customized with various colorful
                             system that boosts heat transfer rate, can        skins as well as with add-ons like a bottle
                             achieve a cooling speed reportedly four           opener. Handles mounted on the side make
                             times faster than usual, and therefore            it easy to transport the modules. The idea
                             locking in the freshness faster. One of its       to create the Flatshare refrigerator came
                             intelligent modes, which feature different        because in many shared flats there is a
                             cooling procedures and temperatures, is for       problem with the refrigerator. It gets filthy
                             hot soup, which is a regular dinner course        because no one person feels responsible for
                             in most Chinese households. No time to            cleaning it. According to the competition
                             wait for the soup to cool down before put-        jury, Flatshare, while managing to be new
                             ting it into the fridge? A drawer lined with      in a fun and expressive way, is also very
                             stainless-steel alloy was designed just for       relevant from a consumer-insight perspec-
                             that purpose—it withstands heat up to             tive, managing to resolve the needs and
                             80ºC. Such innovations, though designed           wants of the target group. The concept
                             for specific markets, can find application        stood out in color as well as design, and
                             in markets beyond. As an example, In-             the fact that users can personalize their
                             dian cooking lays particular emphasis on          Flatshare modules added an interesting
                             freshly cooked food. Cooling down the food        emotional value.
                             after meal almost becomes a chore in itself.
                             The technology would help eliminate the           While refrigerator makers juggle efforts
                             requirement.                                      to create a winning product line, they also
                                                                               need to take a long view on which refriger-
                             Refrigerator makers are making it pos-            ants and insulation-foam-blowing agents
                             sible to do away with compressors, albeit         are most environmentally acceptable and
                             in limited capacity. Haier America has            practical. By changing some of the compo-
                             introduced NuCool technology in 1.7               nents and adopting RoHS, which removes
                             cubic ft. compact refrigerators. The tech-        hazardous materials such as lead, mercury,
                             nology achieves temperatures as low as            and cadmium from the manufacturing
                             37ºF (based on 70ºF ambient room temp).           process, the product becomes easier to
                             NuCool has no compressor and runs very            recycle.
                             quietly while also achieving low power
                             consumption.                                      With worldwide emphasis on energy con-
                                                                               servation and the search for long-term so-
                             What futuristic innovations can the re-           lutions against global warming, customers
                             frigerator industry look forward to? The          expect new products that are more energy-
                             winning entry for Electrolux Design Lab           efficient, yet still deliver more functional-
                             2008 competition was Flatshare, a modu-           ity than ever. Modern kitchen appliances
                                                                               are required to meet stricter government
                                                                               energy regulations while still remaining
                                                                               attractive purchases for the customers.

                                       With increasing                         Energy efficiency, improved performance,
                                                                               environmental responsibility, better food
                                     consumer preference                       safety—these and other goals are likely to
                                    for high-end products, the                 drive interest in new generations of com-
                                     average market price for                  mercial products. Managing profitability is
                                    refrigerators is going                     an issue of concern for Indian refrigerator
                                                                               manufacturers. However, with low penetra-
                                               up.                             tion of refrigerators in the Indian market,
                                                                               and an encouraging performance, the in-
                                                                               dustry is bullish on refrigerators.

58 | TV VEOPAR JOURNAL | APRIL 10 | | An ADI Media Publication
                       Washing Machines
                                                      Research conducted in July 2009

       he ongoing economic buoyancy in           a higher preference for the semi automatic
       India despite global economic melt-       segment. Feature laden, high-end fully au-
       down has offered opportunities for        tomatic models are impacted to an extent
rapid growth of home appliances industry.        by dominance of domestic help in household
The Indian washing machine market seems          chores. The general belief is that since it is
to be on a high growth trajectory with an        the illiterate domestic help who operates
overall growth of 25 percent in 2008–09.         the washing machine, there is no need to
This compares well with a 17 percent growth      invest in the top-end models. Front loaders,
last year.                                       with their bending requirements, are often
                                                 cumbersome for the Indian women.
Interestingly, the semi automatic segment
has regained its lost ground. After a swift      Major growth drivers are growing demand
movement from the fully automatic seg-           from the rural areas, increasing dependence
ment in 2007–08, the semi automatics are         on technology for domestic chores with rise
back to 69.5 percent share. While the fully      in number of working women and vagaries
automatic segment grew by 10 percent this        of domestic help, stable prices, and new
year over the previous year, the semi auto-      product introductions. The evolving retail
matic segment grew by 30 percent. This is        environment with an emphasis on offering
after a 30 percent growth registered by the      enhanced shopping experience is also chip-
fully automatic last year over the previous      ping in, catering to upward social aspira-
year, compared to 11 percent by the semi         tions.
automatic. Perhaps the major growth drive
comes from the rural markets, which showed       The total washing market is estimated at
                                                 2.75 million units for 2008-09, with four
                                                 brands together dominating 78 percent of the
 Semi automatic versus fully automatic           market. LG was the leader with 23.6 percent
    machines (in percent shares)                 share. Samsung and Videocon Group had
Year        Semi Automatic    Fully Automatic    shares of 20.8 and 18.9 percent respectively.
2006-07          70.0               30.0
                                                 Whirlpool also had double digit share, at
                                                 14.5 percent.
2007-08          66.5               33.5
2008-09          69.5               30.5         Godrej and IFB garnered market share of

                       An ADI Media Publication | | APRIL 10 | TV VEOPAR JOURNAL | 59
                             6.7 and 4.1 percent respectively. Onida,          more pronounced in the coastal areas where
                             Haier, and TCL are also aggressive in this        high humidity levels shorten the age of the
                             segment.                                          machine.

                             Other major players include Beltek with           The industry is showing an increasing pref-
                             sales of 24,125 units, Daenyx with sales          erence for larger capacity machines, in both
                             of 24,000 units, and Weston, which was            urban and rural areas. With hectic lifestyles,
                             launched in October 2008, had sales of            urban dwellers prefer bigger washes, wash-
                             15,000 units. Bestavision, ETA Star Ap-           ing no more being part of the daily routine.
                             pliances (Indesit brand), Gem, Panasonic,         There is also an increasing preference to
                             Toshiba, and T-Series also have a presence        wash bulkier items like curtains and bed-
                             in the market.                                    sheets at home. With rural households usu-
                                                                               ally not very constrained for space, bigger
                             In the fully automatic segment, Samsung           capacities are finding popularity in these
                             led the pack with 30.7 percent market share.      markets.
                             LG’s share stood at 24.8 percent. Whirlpool
                             and IFB had shares of 15.2 and 13.6 percent       Hygiene and maintaining quality of fabric
                             shares respectively. Godrej and Videocon          are driving feature innovations. With a
                             Group had shares of 5.3 and 4.1 percent re-       wide variety of textures – cotton, linen,
                             spectively. Onida and Haier’s shares stood at     silk, woollen, to name a few, going into the
                             0.6 and 0.16 percent respectively. Panasonic,     machine, it is imperative that the same
                             Indesit, and Toshiba have a presence in the       machine provides solutions for all. Also
                             fully automatic segment only.                     with clothes being closest to skin, hygiene
                                                                               assumes importance. Videocon offers UV
                             Videocon Group led the semi automatic             light to kill hidden bacteria. Its tub clean-
                             segment at 25.4 percent, followed by LG at        and-dry option avoids accumulation of dust
                             23.1 percent. Samsung and Whirlpool had           in underside of parts. Samsung’s silver nano
                             shares of 16.5 and 14.2 percent respectively.     technology offers 99.99 percent bacteria free
                             Godrej’s share stood at 7.3 percent. Onida,       clothes. Its diamond drum feature offers a
                             Haier, and TCL each are in the three percent      tangle free wash and 79 percent less fabric
                             vicinity. Beltek, Bestavision, Gem, and T-        damage. The company’s Wool mark feature
                             Series have their own niche brand loyalists       washes delicate woolen clothes safely and
                             in the semi automatic segment. Weston has         gently. Whirlpool’s Magic front load range
                             recently entered this segment.                    has a sports washer, especially designed to
                                                                               give a high quality wash to fabrics used in
                             Machines with features based on consumer
                                                                               sports clothes such as lycra. LG’s Allergiene
                             insights are driving the market. Potential
                                                                               cycle in its models globally uses the power
                             consumers are often not convinced about the
                                                                               of steam to gently remove over 95 percent
                             effectiveness of machine laundry vis-à-vis
                                                                               of common household allergens, like dust
                             manual washing. They are skeptical of the
                                                                               mites and pet dander, from even the most
                             efficacy of removing dirt from collars and cuf-
                                                                               delicate fabrics.
                             flinks, and stains. Makers have introduced
                             hand-wash functions to address such issues.       Other than removing allergens, steam is
                             Ease of operation is also being ensured as a      also considered to offer better wash. The
                             technological avalanche can be intimidat-         molecules of steam are smaller, hotter, and
                             ing. Machines talk to consumers and give          more active. Steam gets between fibers to
                             instructions. A whole gamut of features is        dissolve dirt, remove odors, and destroy
                             being developed to address erratic electricity    allergens. Steam also takes less time as
                             and water supply, hard water, and voltage         it reaches higher temperatures quickly.
                             fluctuations. India specific problems that        Steam, helping reduce wrinkles and odors,
                             plague the consumers be they urban or rural       is ideal for refreshing lightly-worn clothes
                             are on top-of-the-mind of most brands.            at the end of the day, or for fluffing and
                                                                               refreshing towels and comforters. Samsung
                             Plastic body washing machines are gaining         incorporates steam in its model WF419 that
                             popularity especially in the semi automatic       is not only gentle on the environment, but it
                             segment, with almost all leading manufac-         is also gentle on clothes. It injects steam to
                             turers introducing models. Plastic is more        help loosen dirt. Its ActivFresh cycle cleans
                             durable and is rust free. The demand is           and refreshes clothes in cold water without

60 | TV VEOPAR JOURNAL | APRIL 10 | | An ADI Media Publication
the use of bleach and hot water, providing        One way manufacturers are reducing energy
energy savings of up to 92 percent compared       consumption by offering lower-temperature
to traditional hot water sanitation. It has       cycles. Using cold water to wash is the sim-
the added benefit of keeping the interior         plest way for consumers to save energy, as
drum clean.                                       nearly 70 percent of energy usage is directly
                                                  related to water heating and water usage.
Noise reduction is another aspect the             However, there are some challenges associ-
manufacturers are taking into account.            ated with the exclusive use of cold water,
LG TrueBalance anti-vibration system is           particularly in front-loading machines.
designed to minimize washer vibration for
smooth, quiet performance in any room of          Lower temperatures often mean that other
the house. Haier’s mute washing machines          washing factors need to be stepped up,
have brought quiet night wash to Russian          whether it is the detergent or cycle time.
consumers. Interestingly, the purpose solved      Reducing water temperatures require an
here is not only one of doing away with the       increase in time, chemicals, and mechani-
discomfort of having to bear machine noise.       cal action to achieve comparable cleaning
With the impact of economic crisis, Russia        results. Simply lowering the temperature
has implemented the adaptive price of elec-       reduces the cleaning performance of the
tricity, wherein electricity price is lower at    machine. However, as long as water tem-
night than that during the day. Therefore,        perature is not too cold—less than 68°F
most consumers choose to wash clothes at          (20°C)—cold water can be very effective in
night. Samsung’s vibration reduction tech-        cleaning. Cold water can be better at remov-
nology reduces the vibration and noise from       ing protein-based stains, and with detergent
unbalanced loads during the spin cycle of         loading, can be very effective with oily stains.
conventional front-loading washers. One of        A key component in effective cold-water
the quietest washers with unbalanced loads;       washes is the detergent. The washer is just
it operates quieter on the second floor or near   as effective in cold water as in hot water,
closets where consumers need it most.             assuming the detergent is active. As these
                                                  formulations become more effective, con-
Consumption of large quantities of detergent,     sumers will be satisfied with the improved
water, and energy is considered a deterrent       cleaning performance. The bottomline is that
in washing machine usage. Manufacturers           some stains and soils require the addition of
are spending much of their R&D time and           heat energy for removal, which means more
efforts designing machines that use less wa-      work needs to be done. Whether the answer
ter and detergent. In the AquaSmart washer        is colder water, more sensors, or plastic
developed by Fisher & Paykel, clothes sit on      granules, there is no doubt that tomorrow’s
a specially designed wash plate that moves        laundry appliances will have to clean better
the garments up and over the outside of           and clean greener—and they will have to
the wash basket, and then down through            prove it to the consumer.
a puddle of water. The clothes are wetted
with a warm soapy solution which is just          Energy efficiency norms in washing machines
enough to wet the clothes and no more. The        are not yet mandatory in India. However, In-
machine then fills with just enough cool wa-      dian appliance makers having demonstrated
ter to create the puddle. AquaSmart does not      their commitment to energy efficiency in air
rely on immersing the clothes to wash them.       conditioners and refrigerators are geared up
The clothes are soaked, but not underwater        to toe the regulatory norms.
all the time. Also, electronic sensors are
playing a key role in reducing water usage.       Technological advancements are detail-
Many washers include water-level pressure         ing issues like how much detergent to put
sensors to adjust the full water level to fit     in, propelling machine laundry to higher
the load size, minimizing the water used in       levels of automation. Engineers from GE
every load and saving energy and money for        Consumer & Industrial have combined
the consumer. H2ITION technology from GE          technology from the medical device in-
Consumer & Industrial uses a variable-speed       dustry with a specially designed sensor to
drive system, a water-level detection system,     create an intelligent detergent dispensing
and software to introduce the right amount        system. The technology, built into the
of water to each wash load.                       new GE Profile SmartDispense washers,

                                                     An ADI Media Publication | | APRIL 10 | TV VEOPAR JOURNAL | 61
                             automatically distributes detergent using         can be addressed. Others are skeptical
                             information it gathers from each load. The        that non-aqueous methods can match the
                             system uses three independent tanks—two           performance of traditional technologies,
                             for detergent and one for fabric softener.        with a view that washing is not just about
                             Each storage tank has a sensor to detect          removing dirt; its a complex process that
                             the level of detergent remaining. When the        removes dirt, microorganisms, extrane-
                             sensor detects a low level, the washer will       ous matter like grass, lint, animal hair,
                             display a refill reminder to the user. In         etc., and imparts fresh, clean-smelling
                             order to determine the correct dosage, the        fragrance to the clothes, without damag-
                             washing machine calculates the appropri-          ing the fabrics, using too much energy, or
                             ate amount of detergent based on water            requiring effort on the part of the custom-
                             hardness, fabric or cycle type, detected          ers, or replacing water and detergent with
                             load size, and input from the user regard-        more-harmful chemicals, and concluding
                             ing the detergent concentration level. GE         that wetting is required to achieve this.
                             engineers had to lean on the expertise
                             of industry partners. Collaboration with          Form is increasingly playing as crucial a
In keeping with              Proctor and Gamble helped GE understand           role as function. In keeping with trends
                             what dosage levels were required based on         that have already influenced the kitchen,
trends that have                                                               laundry appliances and accessories now are
                             these variables to accomplish a great wash
already influenced           performance.                                      able to be fully integrated into any setting.
the kitchen,                                                                   Not only is this an innovative and luxurious
laundry                      The words hot and water seem to be syn-           product, but it is allowing the homeowner to
                             onymous with clean clothes. But today,            incorporate laundry into places that would
appliances and               new and inventive laundry concepts are            not otherwise be appropriate for laundry
accessories now              not only using less heat and less water,          appliances. Appliances are acquiring a de-
are able to be fully         but, in some instances, are eliminating           sign that is able to blend in with the interior
                             them all together. An interesting wash-           and contribute to a harmonious environ-
integrated                   ing concept at Leeds University in United         ment, and the trend is permeating into the
into any                     Kingdom involves clean clothes by using           washing machine segment. The appealing
setting.                     plastic chips instead of water. The wash-         looks not only help integrate the washing
                             ing method uses the absorbent properties          machine into the interiors, but also mitigate
                             of plastic to clean fabric and requires less      the negative feelings associated with doing
                             than two percent of the water used by             laundry and make the chore a little more
                             conventional washing machines, creating           pleasant. Indian washing machine makers
                             a virtually waterless cleaning technol-           are in sync with the trend, with the market
                             ogy. The process begins with about a cup          witnessing presence of models in appealing
                             of water and detergent to loosen the dirt         colors and designs.
                             or stain in the clothing. The clothes are then
                             tumbled with polymer granules (or chips)          The discerning makers are looking towards
                             for upto 30 minutes. The dirt is transferred      developing smart appliances that are Smart
                             to the chips, where it is absorbed by the         Grid enabled or have demand response ca-
                             plastic. Clothes are said to emerge from          pabilities. Such appliances will interact with
                             the process not only clean, but almost dry,       the Smart Grid and will have the ability to
                             reducing the need for tumble drying.              temporarily reduce power or delay some
                                                                               normal operations. A dryer may reduce the
                             Even with its environmental advantages,           wattage used by its heating coils or a fully
                             the successful adoption of waterless              automatic machine may delay its start until
                             technology will depend on consumer ac-            a time of day when energy usage is lower.
                             ceptance, as consumers may be reluctant           Interference with activity in the home will
                             to do away with the historical principal of       be minimized because consumers can over-
                             cleaning with water. Industry experts are         ride appliance actions. Also, by incentiv-
                             of the view that there are other hurdles to       izing smart appliances now, manufacturers
                             jump before consumers will even consider          can add demand response capability to a
                             waterless washing technology, opining             significant portion of their appliances in
                             that once mainstream society can use              the future - preparing households to realize
                             and accept front-load wash technology;            the full benefits of the Smart Grid when it’s
                             the issue of waterless laundry technology         fully deployed.

62 | TV VEOPAR JOURNAL | APRIL 10 | | An ADI Media Publication
                         Microwave Ovens
                                                 Research conducted in August 2009

       he Indian microwave oven market          Whirlpool, IFB, Onida, Godrej, and Koryo
       remained stagnant in 2008–09, with       had shares in the 6–9 percent range.
       estimated sales at 985,000 units.
With low stakes, the category did not wit-      In the convection segment, LG led with
ness significant expansion efforts by man-      a 30 percent market share. The segment
ufacturers during the economic slowdown         witnessed close competition among the
and also remained subdued on shopping           other players. Samsung commanded a 17
priority of housewives. Demand primarily        percent share, IFB 13 percent, Onida 12
came from upcountry markets.                    percent, and Videocon Group 10 percent.
                                                Godrej had a six percent share, while
LG was the clear market leader with 32          Whirlpool and Panasonic had about two
percent market share. Samsung’s market          percent share each.
share stood at 16 percent. IFB, Videocon
Group, and Onida were neck-to-neck, and         This is in sync with the overall industry
hovered around 10–11 percent shares             trend. Lagging behind grill till last year,
each. Godrej, Whirlpool, and Koryo (pri-        the convection segment has leaped ahead
vate label for Home Solutions Retail) had       of grill this year and is poised for further
shares between 4 and 6 percent. Panasonic       growth given the emphasis being placed on
also has a presence in the market.              this category by the leading players. With
                                                this category propelling value growth to
The solo segment was led by LG with 36          the industry, there is some cheer for the
percent market share. Samsung and IFB           industry not having a good run with vol-
had 16 and 13 percent shares each. Onida        ume. The segment’s growth is fueled by
and Videocon were close at about nine per-      availability of entry level convection mod-
cent shares each. Koryo, Whirlpool, and         els at a lower price, increasing customers
Godrej had market shares between three          to upgrade their purchase from grill to the
and five percent.                               more functional convection. Efforts are on
LG commanded 31 percent share in the            to create categories within this category.
grill segment, and Samsung was at 14 per-       With smart ovens, Samsung is seeking to
cent. Videocon Group was the other play-        create a new segment in the high end con-
er with double digit share of 11 percent.       vection microwave oven segment.

                      An ADI Media Publication | | APRIL 10 | TV VEOPAR JOURNAL | 63
                             The industry is far from realizing its true       of import formalities.
                             potential. There have been no significant
                                                                               Globally, with microwave oven being the
                             efforts to grow the market. With its basic
                                                                               primary cooking appliance, the features are
                             utility, cooking, being met anyway through
                                                                               much more sophisticated and advanced,
                             gas stove, the product has not been read-
                                                                               and functionality more evolved. Their per-
                             ily lapped up. The situation is comparable
                                                                               formance is 2-3 times higher than their
                             to the washing machine industry when
                                                                               Indian counterparts. These appliances are
                             the semi-automatic machine was first in-
                                                                               witnessing features like LCD panels and
                             troduced. It has taken sustained effort of
                                                                               web-based technology enabling download-
                             many years by players combined to get
                                                                               ing of recipes from the Internet. The ov-
                             consumers to habitually use the appliance
                                                                               ens can be very communicative, featuring
                             and graduate from performing its desired
                                                                               three-dimensional control panel units that
                             task manually. And even then, with the
                                                                               tilt towards users. On selected models, a
                             washing machine category posting healthy
                                                                               touch of the finger on the glass panel, and
                             growth in recent times, its penetration is
                                                                               the oven wakes up with a polyphonic melo-
                             still about 6.5 percent. Microwave oven ev-
                                                                               dy, whilst a strip of LEDs below the control
                             idently has a long way to go, and is a cause
                                                                               panel illuminates to show that it’s ready
                             of much optimism for brands, also mani-
                                                                               for use. This atmospheric lighting goes out
                             fested in aggressive sales targets. What it
                                                                               once the oven has reached the set tempera-
                             would require however is a sustained ef-
                                                                               ture. These features can easily be disabled
                             fort to grow the market, and to ingrain the
                                                                               if users don’t want their oven to be quite so
                             habit of the usage of the gadget for actual
                             It then comes as no surprise that conduct-        The microwave ovens are not limited to a
                             ing cookery classes for demonstration of          single function, but offer multiple kitchen
                             Indian cooking in microwave oven is high          functions in one gadget. An example is
                             on companies’ agenda. Amongst feature             LG’s combination oven and toaster. It is
                             / technology innovations, high up on the          likely to be very popular with students and
                             introductions are the features specifically       city dweller’s where living space is at a
                             designed to aid Indian cooking. Delivering        premium. Sharp’s toaster oven and micro-
                             better proposition and developing function-       wave combines versatility and convenience
                             ality to cater to customers’ specific needs       with exceptional results. Nor do these ap-
                             is being looked at to change consumers’           pliances have to be limited to cooking one
                             mindset. Efforts are also being put into in-      item at a time. Electrolux’s built-in micro-
                             shop collaterals to educate consumers on          wave features a two position adjustable
                             latest technologies and features. The auto        rack so one can cook more than one dish at
                             cook menu feature is emerging a differen-         the same time.
                             tiator, both facilitating convenience and
                                                                               Inverter technology is making its presence
                             promoting Indian cooking.
                                                                               felt in the microwave segment. The Pana-
                             Price erosion has been a cause of concern         sonic Prestige Microwave Oven incorpo-
                             for the industry. However with the esca-          rates the inverter technology pioneered by
                             lating commodity prices including steel,          Panasonic, offering an upgrade from the
                             copper, zinc and plastic, around the globe,       typical microwave. The Inverter system of-
                             prices are likely to stabilize. With the mi-      fers the opportunity to cook entire meals
                             crowave oven industry being import de-            in the microwave, with gourmet flavors
                             pendant, the threat of higher procurement         and textures one wouldn’t normally expect
                             cost, thereby impacting costs across the          from a microwave.
                             value chain, looms large. Chinese players
                             are also a challenge for the industry.            Other than new technologies, new me-
                                                                               diums are being introduced for cooking,
                             With the growth of large format retail            and one such medium is steam. Not only
                             stores and the emphasis on private labels         is cooking with steam healthy, it is fast
                             in their business model, their private label      and the results are delicious. Nutrients
                             microwave ovens are making their pres-            are sealed into the food, not lost into the
                             ence felt in the Indian microwave oven in-        cooking water, fat and seasoning can be
                             dustry. The growth is facilitated by easing       kept to a minimum, and the full flavor of

64 | TV VEOPAR JOURNAL | APRIL 10 | | An ADI Media Publication
the food is allowed to develop. It is also     food retailers where package are scanned
speedy, as a whole dinner can be cooked        and the perfect cooking settings down-
at once with no danger of flavors transfer-    loaded.
ring from one dish to another. Godrej has
                                               Microwave oven is not just a kitchen ap-
been actively promoting its steam micro-
                                               pliance; it is also impacting the sociology
wave oven. Miele offers a choice of steam
                                               of eating and food business. The micro-
models: pure steam, combination-steam
                                               wave has made it easier for people to cook
(steam plus dry heat), and steam pres-
                                               and it reduced the time needed for pre-
sure. The steam is generated outside the
                                               paring and cooking food. It was no longer
oven cavity before being injected around
                                               necessary to plan a lot of time for prepar-
the food to envelop and seal it. Models
                                               ing dinner, since food could be heated in
are available that are plumbed into the
                                               a matter of minutes. As a result, there
household water supply for the ultimate in
                                               was a desire for easy and quick food pre-
convenience, while the other models have
                                               paring, which led to a behavioral change
a refillable water tank. The pure steam
                                               in people not wanting to spend time on
ovens offer six steaming functions for dif-
                                               cooking. A demand for quick food arose,
ferent types of food such as vegetables,
                                               and thus the TV dinner was developed.
fish and meat. Each one is programmed
                                               The TV dinner (or ready meal, microwave
with the optimum temperature to suit the
                                               meal) is a complete frozen or chilled meal
food, ensuring it is cooked to perfection.
                                               that only needs a couple of minutes in the
What’s more, depending on model, some
                                               microwave oven. Although it was first pre-
ovens have over 150 automatic programs
                                               pared in a conventional oven, people soon
for cooking specific dishes and even whole
                                               found out that the ease of the TV dinner
menus at once, setting the temperature,
                                               could be combined with the speed of the
time and functions for you.
                                               microwave oven. These pre-made meals
The combination steam oven not only            are usually more expensive. However, the
cooks with steam, it also offers traditional   middle class is willing to pay this price
dry heat, and in a revolution of cooking       because doing so saves time. The middle
convenience, can combine the two methods       class has adopted creative cooking, since
to produce truly professional baking and       this differentiates them from the fast food
roasting results. In steam pressure oven,      culture which has a negative connotation,
adding pressure when steam cooking re-         even though they do not have the time to
duces cooking times by around half.            do so. In order to be different but time-
                                               saving as well, the middle class worker
Another innovation in cooking methods is       has become a profitable market sachet
moisture plus. This cooking mode uses fan      for the food industry. Economic reasons
heat and steam to give optimum results for     are thus the main drive in this marketing
baking and roasting. Water is drawn into       strategy. The question that still remains
the oven via a filling tube before cooking     is if this development of the TV dinner is
begins which creates electronically con-       one of social need for the product or if the
trolled bursts of steam that are injected      demand for it was actually created by the
around the food at appropriate intervals       food industry.
during the cooking process to ensure won-
derfully moist results. Bread emerges with     Despite the current scenario, the industry
a deliciously glossy crust, cakes are light    is optimistic about microwave ovens. With
and risen to perfection and fish comes out     changing needs and changing priorities,
moist and firm, while the fat in meat is       Indian consumers want to spend less time
drawn out to create a roast that is crisp      in kitchen cooking meals. Whether women
on the outside and succulent and tender on     work outside home or are house makers,
the inside.                                    they are getting less time to cook. With
                                               evolving lifestyles, ever-increasing enter-
What is the way to the future? One can         tainment options, and increased social
anticipate ovens with advanced sensors         especially in urban set-up, consumers al-
weighing the dish, setting temperatures        ways have other things they can do in the
and cooking modes to give the perfect re-      time they usually needed to cook dinner. A
sult every time. Looking ahead, possibili-     microwave oven is just the kitchen gadget
ties include future ovens networking to        that can come to their aid.

                                                 An ADI Media Publication | | APRIL 10 | TV VEOPAR JOURNAL | 65
                                                                 Air Conditioners
                                                                               Research conducted in March 2010

                                   he Indian air conditioner market            Window Air Conditioner, Art Cool, Floor
                                   is estimated at 2.8 million units           standing and Mirror Splits.
                                   in 2009. The top three brands, LG,
                             Samsung and Voltas commanded 56 per-              Samsung registered sales of 291,400 units
                             cent of the market. The top eight brands,         in the split AC market and 178,600 in the
                             LG, Samsung, Voltas, Videocon, Onida,             window AC segment, with a total sales of
                             Godrej, Blue Star and Hitachi accounted           470,000 units in 2009. The company start-
                             for 87 percent of the total market, with          ed manufacturing ACs in India with the
                             the split air conditioners accounting for 68      launch of two lines – one each at Chennai
                             percent of their sales.                           and Noida. There is an increased focus on
                                                                               performance, design, color and India cus-
                             ACs with capacity of 1.5T lead the pack           tomization at Samsung. In order to gener-
                             with a 65 percent share followed by 1T            ate awareness in the semi-urban markets,
                             ACs, which accounted for 25 percent and           the company has started initiatives like
                             2T ACs with 10 percent.                           Dream Home Road Shows, mobile vans,
                             The split segment stood at 1,900,000 units
                             with LG, Samsung and Voltas accounting            Voltas’ total AC sales are estimated at
                             for more than 53 percent market share             400,000 units - 268,000 units in the split
                             while the window AC segment stood at              segment and 132,000 units in the window
                             900,000 units in 2009.                            segment. The company has set up a manu-
                                                                               facturing facility at Pantnagar, ensuring
                             LG sales stood at 700,000 units, with sales       that right products are made available at
                             of 455,000 units in the split AC segment          the right place, at the right price, in-time.
                             and 245,000 units in the Window AC seg-           In developing the 2010 range, the compa-
                             ment. In the AC segment, the company of-          ny kept in mind the market’s heterogene-
                             fers various customized services and mod-         ous nature, with its diversity of priorities,
                             els keeping in mind the individual needs          preferences, income groups and aesthetic
                             of the customer. The models on display at         tastes.
                             the stores include high-end models, Twin
                             Power Systems, 3-way surround cool,               Videocon Group, in 2010, is anticipating

66 | TV VEOPAR JOURNAL | APRIL 10 | | An ADI Media Publication
gradual shift from window ACs to splits.        dealers in more than 200 cities by the
In order to increase sales, the company         end of 2010. In order to ensure a smooth
introduced various combi offers and ex-         purchase and ownership experience for
change offers to attract more customers.        the customers, the company plans to add
The Group is also offering features like        around 300 service outlets and 700 exclu-
Vita-air, power cool, oxygen and Dura cool      sive retail manpower.
to its customers. Videocon has opened a
retail initiative-Digiworld, which caters to    Lloyd is spending heavily on brand aware-
the ever increasing demand and is aggres-       ness. The company makes use of in-house
sively planning to open 150 more Digi-          CRM software in order to provide the best
world stores this year.                         and prompt after sales services.

Onida gives due attention to energy ef-         Panasonic is laying stress on air purifi-
ficiency and its AC provides heavy-duty         cation, Eco Patrol, inverter technology
cooling due to the advanced design of large     (which is more energy saving) and use of
multi-bend cooling coils, highly efficient      R4108. The company marketing strategy
compressors and high air throw.                 is focused on promotion of high-end prod-
                                                ucts and Bollywood star Katrina Kaif has
Godrej will focus on split ACs and will         been signed as the brand ambassador for
build brand-equity by making a 360 degree       home appliances.
promotional plan through the year. The
company’s EON range of 5 Star Mirror se-        Daikin India has developed a wide distri-
ries has created a benchmark in terms of        bution network in India, which includes 11
its stylish looks. The company would also       sales and service offices and three spare-
be expanding its SSD network throughout         parts centers. The company has more than
the year.                                       280 dealers across the country that are
                                                fully equipped to handle all activities re-
Blue Star has created a new TVC high-           lated to sales, service and installation.
lighting air-conditioning domain expertise
                                                ETA General is gearing to shift to eco-
and has built a robust sales and service
                                                friendly less-energy consuming ‘inverter
dealer network across the country. The
                                                technology’ in all its split ACs. These
company has also expanded its network
                                                products will use R140 green gas, unlike
into tier-2 and tier-3 cities. The company
                                                R22 refrigerant gas used in normal models
offers air-conditioning solutions for differ-
                                                which are relatively polluting.
ent segments such as residencies, offices,
banks, educational institutions, retail,        Daenyx’s focus is on institutional sales.
healthcare, hotels, manufacturing etc.          The company’s distribution strategy in-
                                                cludes one distributor per area, largely
Hitachi has introduced Direct Efficient         through SSDs.
Technology in all their ACs, which pro-
vides high-energy efficiency and silent         Haier’s split ACs are equipped with a hi-
cooling. To provide communication plat-         performance digital DC- inverter compres-
form for this technology, the company has       sor, digital conversion circuit and a per-
planned three promotional films this year.      manent magnetic motor. This means that
In order to ensure focused selling, all the     less power is consumed to keep the AC
major retail chains have been offered a         functioning. The company’s window ACs,
differentiated AC range.                        incorporate a unique three-stage air filter
                                                that rids air of bacteria, dust, pollen and
Carrier’s India marketing strategy is de-       other allergens.
rived from its global company’s strategy.
The company positions itself as a green         Nova Industries with its brand Mitsubi-
company, producing environmentally sus-         shi Electric, is determined on building a
tainable products in an eco-friendly way.       knowledge base among dealer partners
                                                and technical personnel with a clear focus
Whirlpool has plans to expand its footprint     on City Multi VRF systems, inverter sys-
beyond the metros and mini-metro cities,        tems and ventilation products. The com-
to increase its share in AC industry. The       pany has plans to target big cities where
company plans to rope in around 1,500           the demand for high-end energy efficient

                                                  An ADI Media Publication | | APRIL 10 | TV VEOPAR JOURNAL | 67
                             products is increasing.                           These standards include sound rating
                                                                               of ducted air moving and conditioning
                             TCL’s ACs delivers fresh and germ-free            equipment; performance rating of ther-
                             air, designed with modern technology              mal storage equipment used for cooling;
                             with latest innovation. The company has           rating of sound and vibration for refrig-
                             designed ACs with maximum noise levels            erant compressors, sound rating for non-
                             of just 38-decibels. These conditioners also      ducted indoor air conditioning equipment;
                             incorporate the global concept of digital         performance rating of residential air
                             intelligence.                                     filter equipment; performance rating of
                                                                               commercial & industrial air filter equip-
                             The extended summer, high humidity
                                                                               ment; central station air-handling units;
                             (which meant that home coolers were inef-
                                                                               performance rating of room fan-coils;
                             fective) and delayed monsoons, assisted the
                                                                               performance rating of refrigerant liquid
                             manufacturers in logging better numbers
                                                                               receivers; air diffusers and air diffuser as-
                             for the industry in 2009. Energy labelling
                                                                               semblies; and specifications for fluorocar-
                             for room ACs have been made mandatory
                                                                               bon refrigerants.
                             from January, therefore manufacturers
                             are introducing energy efficient products.        Inverter technology is making its presence
                             Star labelled ACs are expensive compared          felt in the Indian AC market. ACs operat-
                             to unlabeled ones, because the former’s           ing on this technology have significantly
                             design requires use of high-efficiency com-       lower energy consumption over conven-
                             pressors/motors and suitably-sized heat           tional air conditioners, has less motor run
                             exchangers. Hence, the Room ACs have              time, ensuring quieter operations and less
One of the                   become costlier compared to last year.            energy wastage.
prime                        Air conditioners call for regular profes-         AC is now not only thought of as a cool-
challenges                   sional assistance – from installation to          ing appliance, its image has transformed
faced by the                 maintenance. Since ACs tend to be used            to being a stylish and intelligent indoor
                             seasonally in most cases (being only the          air conditioning system. The customer’s
AC industry                  cooling ones), consumers also tend to go in       now look for various other features in the
is the sluggish              for routine maintenance check-up at the           products, beyond mere cooling like - prod-
recovery of                  onset of the season. To this end, compa-          uct aesthetics, features, designs, colors,
real estate                  nies are investing in training of installers      latest technologies and better service.
                             and service personnel and beefing up serv-        The customer has become more aware
from the recent              ice infrastructure since it is often a decid-     of the star ratings; as such models offer
economic                     ing factor in brand choice and in case of a       better value. The popularity of split ACs,
slowdown.                    service-sensitive product category like air       placed as they are in the middle of a room,
                             conditioners, it could be a clinching fac-        has fuelled design innovations. The split
                             tor.                                              ACs are adorned with colorful and glossy
                                                                               panels, artistic motifs, even have provi-
                             Some of the notable trends visualized in          sion for panel for inserting one’s favorite
                             the industry are growth in the hi-wall            piece of art. Windows ACs too get a dash
                             segment versus window ACs, movement               of color.
                             and preference of customers toward star-
                             labeled products with higher efficiency           One of the prime challenges faced by
                             ratings, use of non ozone-depleting refrig-       the AC industry is the sluggish recovery
                             erants in the commercial segment, and             of real estate from the recent economic
                             compressors shifting from reciprocatory to        slowdown. So also, the rising commodity
                             rotary, scroll and screw.                         prices, the increase in excise in the latest
                                                                               Union budget, the increase in the prices of
                             Global standards of air conditioning equip-       fuel, etc. are dampeners. However, the in-
                             ment are being brought to India. Indian           creasing purchasing power of the growing
                             Society of Heating, Refrigerating and Air         middle class, the increase in disposable
                             Conditioning Engineers (ISHRAE), and              incomes and the fact that the penetration
                             US-based Air Conditioning, Heating, and           is only about three percent of even the ur-
                             Refrigeration Institute (AHRI) have taken         ban areas, means that the market is still
                             up the task of adapting the AHRI Stan-            largely untapped and can only head one
                             dards to suit Indian conditions.                  way – north.

68 | TV VEOPAR JOURNAL | APRIL 10 | | An ADI Media Publication
                                  Digital Cameras
                                                    Research conducted in June 2009

      he Indian digital camera market is         its state-of-the-art digital camera service
      estimated at one million compact           facility in Noida. This is the first facility
      range of cameras and 25,000 DSLR           in India and second in Asia for Kodak to
cameras, in 2008–09. Sony, Canon, and            be equipped with the latest calibration
Kodak command 79 percent of the market.          and setup equipment for digital cameras
Slated to grow at 20 percent per annum,          and can handle complex servicing and
the market is heading towards 1.23 million       repairs.
cameras next fiscal.
                                                 Nikon expects double digit growth in their
Sony India leads the pack with the launch        compact camera range this year. Nikon
of 11 models of Cyber-shot range including       launched D5000, the world’s first DSLR
the world’s slimmest digital still camera.       camera with a 450-degree rotating LCD
The brand is retailed primarily from Sony        screen in May 2009. Its focus is on promot-
exclusive stores.                                ing photography in India by conducting
                                                 workshops and improving the distribution
With 52 cameras in its portfolio, Canon          with better in-shop visibility across the
India plans to increase to 1500 retail points    country.
and focus more on electronic shops. Sachin
Tendulkar is the brand ambassador. Canon         Olympus focuses on durability and offers
encourages photography by launching              tough, digital cameras stressing on features
digital photography training centers and         like shock-proof, water-proof and dust-
conducting workshops. After sales is be-         proof. The company plans to increase the
ing strengthened with the addition of two        brand awareness through signage, POPs
master service centers at Bangalore and          and displays.
Chennai by this year. This is in addition
to the two existing centers at Gurgaon and       Samsung India has recently launched 8
Mumbai.                                          models of sleek and stylish digital cameras
                                                 which include their flagship model WB500
Kodak India has recently inaugurated             with 24mm Schneider lens. The company

                       An ADI Media Publication | | APRIL 10 | TV VEOPAR JOURNAL | 69
                             has set itself a target of doubling its sales     portant as most consumers prefer sleeker
                             this year.                                        and lighter frames. Their desire for more
                                                                               features is also shifting the trend toward
                             Fujifilm India has received immense ac-           camera accessories and freebie bundling.
                             claim for its path breaking EXR technology        The preferred price range in entry level
                             in FinePix F200EXR and Super CCD EXR              cameras is Rs. 10,000 to Rs. 15,000.
                             sensor. The company plans to increase
                             presence in mass merchandisers and spe-           Consumers are recognizing that the sole
                             cialty stores. Recently Fuji has launched         criteria of choice are not megapixels.
                             its new range of 7 camera models in Uttar         Various features like optical zoom, LCD
                             Pradesh also.                                     display and durability are now being pre-
                                                                               ferred by customers. Manufacturers have
                             With its award winning model LX3, Pana-           incorporated and improved functions like
                             sonic plans to focus on experiential mar-         image stabilizer, shutter release time,
                             keting to give a feel of the cameras to the       face detection, blink and smile detection.
The digital                  customers and help them select according          Now 8 megapixel is almost obsolete in the
camera                       to their personality.                             market with 10 megapixel becoming the
market is an                 Casio India is targeting at the young and
                                                                               latest choice.
amalgamation                 savvy with its Exilim range. The company          Global Scenario. The global digital camera
of technology                is focusing more on below-the-line activi-        market remains stagnant at 125 million
                             ties this year.
and aesthetics,                                                                units in 2008-09 and preferences are shift-
                                                                               ing from entry level cameras to DSLRs.
with vendors                 Albeit a late entrant in the Indian mar-
                                                                               The Asian region has defied these trends
trying to cope               ket, Sanyo’s focus is on rapidly expanding
                                                                               and it is expected that unit shipments in
                             through channel partners. Recently they
with continuous              have launched their Xacti dual camera
                                                                               the Asia-Pacific region will surpass North
price erosion                                                                  America by 2013. This growth is being fu-
                             range that pack features of digital still
                                                                               elled by a combination of large population
alongwith                    camera and high definition videography
                                                                               and increasing wealth.
                             capabilities. The product range is retailed
                             at Rs. 17,000 for the base model and Rs.          New photography trends are being intro-
deeper into the              45,000 for full-feature packed ones.              duced globally every year. For 2009, Olym-
technologies                                                                   pus, Nikon and Pentax have introduced
                             Chinese and Taiwanese brands of cam-
at either end                eras, with extremely competitive prices,
                                                                               digital camera models with 26x Ultra Zoom.
of spectrum                                                                    Fujifilm has unveiled prototypes of its
                             continue to be an issue of concern for the
                                                                               FinePix Real 3D system. This boxy-looking
- compact                    manufacturers.
                                                                               camera has two lenses and two CCDs. By
range and                    Compact digital cameras (point and shoot)         using a new technology, it combines them
DSLRs.                       and digital single lens reflex cameras (DSL-      to make a 3D image that you can see on
                             Rs) are the broad categories in which the         the camera screen or a special 3D viewer or
                             digital cameras may be segmented. Bridge          have prints made. Geo-tagging is becoming
                             cameras like ultra compact, advanced and          popular in cameras and camcorders. It helps
                             superzoom are a blend of features of the          to know the exact location of the shot taken.
                             two.                                              The underwater digital camera masks
                                                                               (snorkel or scuba) are available which have
                             The Indian digital camera has gained popu-        built-in 5 megapixel cameras that can take
                             larity since as recent as 2005. Though April      stills and videos as well.
                             to June and October to January are tradi-
                             tionally peak periods, the product is now         Gradually, as photography inculcates in the
                             selling all-the-year round. With declining        Indian consumer, the aspiration for DSLRs
                             price differentials, the entry level cameras      will also grow. These cameras give photog-
                             are losing out to DSLRs.                          raphers enough room for experimentation
                                                                               with interchangeable lenses. Digital SLRs
                             Margins are being compromised with de-            help achieve a broader range of quality pho-
                             clining ASPs. Manufacturers are adopting          tographs with better image sensors and pro-
                             a consumer-centric approach as consumers          cessors. The rising popularity gives impetus
                             look for additional and advanced features.        to the digital camera vendors to penetrate
                             The ergonomics of the camera is also im-          deeper into this technology spectrum.

70 | TV VEOPAR JOURNAL | APRIL 10 | | An ADI Media Publication
                                                                Water Heaters
                                                                    Research conducted in November 2009

All the major                 he water heater industry in India         features ideal for hard water areas and
                              is looking upwards. Urbanization,         suitable for high rise buildings and pres-
players aim                   electrification of villages, changing     sure pumps. It endeavors to bring world
to communicate         lifestyles and higher disposable income          class products keeping in view the public
their unique           are providing the necessary impetus.             desire for instant water heating facility. It
features with                                                           offers electrical, gas and solar water heat-
                       Real estate builders with the futuristic         ers, with the latest in aesthetics, efficiency
the objective of       high rise apartment settings have fuelled        in performance, and a high level of safety
standing out from      the appetite of the middle class to go in        and durability available from Italy.
the rest of the pack   for all kind of designer water heaters.
                       With housing construction stagnant this          Venus has a clear cut roadmap for water
and reinforce          year, it was more a period of consolida-         business which revolves around continuous
their                  tion and an opportunity to jumpstart the         innovation and introduction of new models
premium                business with new ideas and innovative           backed by an aggressive nationwide brand
                       approach. Trends indicate a demand for           building publicity and promotion cam-
position.              a distinctive brand with innovative ideas        paign. The company has incorporated fea-
                       and benefits.                                    tures including anti shock protection, high
                                                                        pressure rating, high performance incol-
                       With the market showing signs of pick-           ogy level and BEE energy label.
                       ing up, manufacturers are in a frenzy of
                       activity. Efforts are to capitalize as much      Crompton Greaves is committed to give a
                       as possible on the emerging innovative           complete solution to customers for their
                       features as all the major players aim to         needs of water heating by incorporating
                       communicate their unique features with           innovative features like poly urethane
                       the objective of standing out from the rest      insulation(PUF), external thermostat con-
                       of the pack and reinforce their premium          trol knob, external jacket/casing made of
                       position.                                        ABS, five tier safety devices like thermo-
                                                                        stat, thermal cut out, fusible plug, pres-
                       Racold promises to provide energy saving         sure release valve (PRV)-reducing exces-
                       and safe products to its customers with          sive pressure build up in tank. It also

                                              An ADI Media Publication | | APRIL 10 | TV VEOPAR JOURNAL | 71
                             provides high water pressure for high             nal temperature control which helps save
                             raise buildings, its focus being 5 star BEE       power and in gas water heaters range it
                             rating for energy efficiency, providing gas       provides features like microchip control-
                             geysers for compact and economy require-          led operation, summer/ winter selector
                             ment.                                             switch, attractive shower, flame failure
                                                                               detection device, anti-freezing protective
                             Haier promises to create a comprehen-             device etc.
                             sive product portfolio and significantly
                             strengthen the overall competitiveness            New players like A.O. Smith manufactures
                             of the group’s water heaters by providing         both residential as well as commercial wa-
                             diverse features like safety, durability,         ter heaters with world-class features like
                             convenience, multiple usage, nice mold-           the glass coated element, Blue diamond
                             ing, space saving etc. Haier’s innovation,        technology that radically reduces corro-
                             aesthetics, functionality, durability, eco-       sion – a problem commonly experienced
                             compatibility, clear user-friendly func-          in India due to the nature of the water,
                             tions and safety were the criteria kept in        and the A. O. Smith colourmatch system –
                             mind while designing Spa water heaters.           which allows colours to be changed on the
                             The company produces energy efficient             contemporary designed product.
Real estate                  products, which qualify the international
                             quality standards to ensure that it brings        Other aggressive players in the organized
builders with                                                                  market include Remson, Thermoking, In-
                             the best world class products for consum-
the futuristic high          ers.                                              alsa, Kenstar, and Spherehot. Remson has
rise apartment                                                                 introduced water heaters with features
                             Bajaj Electricals incorporates features like      like ABS body, with copper coils made up
settings have                imported combistat, PUF insulation for            of 99.9 percent pure copper, auto adjusted
fuelled the                  energy savings in its storage water heat-         internal thermostat and added thermal
appetite of the              ers and innovative features like oxygen           cut which keeps water heater safe from
middle class to              depletion monitor, LED indicator for tem-         cutting out even after thermostat fails.
                             perature in its instant gas water heater.         Spherehot caters to commercial, electric
go in for all kind                                                             instant and storage water heaters and
of designer                  Symphony focus is to become India’s first         also to gas water heaters.
                             5 star rated water heater with importance
water                        given to power savings. Its USP is double         Water heaters nowadays are using fea-
heaters.                     insulation ensuring minimum heat loss             tures like PUF (Polyurethane foam) con-
                             and maximum energy saving.                        tributing to the savings of 30 to 40 percent
                                                                               in terms of energy savings, double insula-
                             V Guard is in an expansion mode aiming            tion which minimizes heat loss and maxi-
                             to use energy saving technology and the           mizes energy savings, ABS body providing
                             unique safety features developed inhouse          excellent heat insulation and non degra-
                             with R&D excellence, and to develop new           dable in the presence of water/humid-
                             products that are economical and safe.            ity, external thermostat and devices like
                                                                               thermostat, fusible plug, thermal cut out,
                             Usha International offers a wide array
                                                                               pressure release valve preventing tank
                             of water heaters offering a unique exter-
                                                                               collapse making the storage water heater
                                                                               an extremely safe device to operate.

                                                                               Toward energy and power savings, the
                                                                               Indian government is planning to make
                                     Indian government
                                                                               using solar heating systems mandatory in
                                         is planning to make                   all commercial buildings. This is as part
                                      using solar heating                      of the National Solar Mission by 2012.
                                       systems mandatory                       It wil be mandatory for all government
                                                                               buildings, schools in residential areas, col-
                                        in all commercial                      leges, hostels, technical institutes, tour-
                                             buildings.                        ism complexes and universities, hospitals,
                                                                               guest houses, hotels and nursing homes to
                                                                               install solar water heaters between 2009
                                                                               and 2012.

72 | TV VEOPAR JOURNAL | APRIL 10 | | An ADI Media Publication
                                                                    Water Purifiers
                                                                           Research conducted in November 2009

    ncreasing health consciousness        nation of both technologies is also         offering flexibility of location – over
    and awareness of health risks         incorporated. Other technologies are        the counter, or under the sink, offer-
    linked to unsafe water is fuel-       also popular, including resin-based         ing consumer more choice of where
ling a surge in awareness for the         and cartridge-based technology. The         they want to install their purifier.
need of water purification systems.       polyiodinated resin is the core media       Water, once purified, needs to be
Limited supply of portable water          for disinfection of water which kills       protected to avoid contamination.
or availability of hard water, water      disease causing bacteria and viruses.       Technologies to ensure internal
traveling a long way from the sup-        In addition to electricity-based opera-     cleaning of the appliance are high
ply source to the taps at homes, and      tions, non-electricity, and solar pow-      on manufacturers’ agenda, including
growth in industrial processes that       ered functions are also popular.            air tight storage tanks and sanitizers
discharge chemicals, are fuelling the                                                 to prevent slime and other impurity
demand for technologically advanced       Technologies are also being spruced         formation inside the appliance. En-
installed domestic purifiers that not     up to offer the facilities beyond the       hancing quality of water is also being
only offers germ free water but also      basic purification of water, aiding         paid close attention to. Features are
remove heavy metals, color, and odor      in both value addition to consumers         being incorporated to offer water
from water.                               and gain an edge over competition.          that improves digestion, and guard
                                          Features are being offered to ensure        healthy minerals.
The most popular technologies incor-      ease of use and changing filters.
porated in domestic water purifiers       Power-saving technologies are being         As water purifier manufacturers set
in India are the ultraviolet radiation    incorporated in electricity-operated        out to enhance market share, tech-
(UV) and reverse osmosis (RO). Ultra-     purifiers in addition to protection         nological innovations would likely
violet purification utilizes a UV light   from current and voltage fluctua-           emerge a significant differentiator
source. The cells of harmful microbes     tion. The purifiers indicate when           and marketing platform. The large
are rendered sterile once exposed to      filter change is due, and to maintain       number of patents held by manufac-
UV rays. RO purifiers convert salty       hygiene, there is no dispensing of          turers in the water purifier market
water to pure, natural tasting water.     water when purity is not optimum.           only highlights the significance given
For advanced purification, a combi-       Technological enhancements are also         to technologies in this category.

                                                    An ADI Media Publication | | APRIL 10 | TV VEOPAR JOURNAL | 73
                                                                               Research conducted in February 2010

       he Indian DTH market is               conventional digital TV broadcast.        DTH VAS services.
       estimated at 20.5 million sub-        The company is planning to offer its
                                             consumers new and exciting options        Bharti Digital TV, with a subscriber
       scribers as on December 2009,
                                             by adding more innovative features        base of 2 million is offering various
an increase of 9.5 million over 2008.
                                             and value added services on their         schemes and discounts to it’s custom-
Currently, the Indian DTH market                                                       ers on purchase of new Airtel digital
is being served by six private players                                                 TV connection. Airtel digital TV also
- Dish TV, Tata Sky, Sun Direct, Big         Tata Sky, with a subscriber base of       brings an exciting range of interactive
TV, Airtel digital TV and Videocon           4.63 million, has launched a bouquet      services like shopping, booking movie
d2h and one public sector entity, DD         of interactive services that caters to    tickets, holiday planner, future-
Direct Plus.                                 the interests of all age groups. Cur-     forecasts etc.
                                             rently, the company offers ten interac-
Dish TV owned by the Zee group, held         tive services viz. Actve English, Actve   Videcon d2h was launched in May
the number one position in the market        Mall, Actve Wizkids, Actve Stories,       2009. Since then it has registered a
with a subscriber base of 6.5 million.       Actve Learning, Actve Games, Actve        subscriber base of 0.25 million. The
In collaboration with,        Darshan, Actve Cooking, Actve Star        company is offering its consumers
the company is offering value added          News and Showcase.                        interactive services like DD Active,
services, mobile active, to enable                                                     State Active, Darshan Active, Finance
viewers to preview ringtones, wallpa-        The Big TV subscriber base stood at       Active, Active Games, Active Puzzles
pers, text alerts and contests on their      2.23 million and plans to double its      and Tickers.
TV and download it on their mobiles.         VAS contribution to overall revenues,
It has also joined hands with monster.       during the next fiscal. Big TV has tied   The market is witnessing intense
com, and               up with Indiagames, a subsidiary of       competition among players to capital-
                                             UTV, to provide popular games avail-      ize on the high potential and offer
Sun Direct has chalked-up a subscrib-        able on PC, web and other gaming          differentiated service to their viewers
er base of 4.9 million till December         platforms to its DTH subscribers.         as their USP. Value added services
2009. This year, Sun Direct launched         The launch of DTH Gaming services         (VAS) are the emerging differentia-
HDTV on DTH. HDTV programs have              is part of Big TV’s strategy to drive     tors in such a scenario. They comple-
better video and audio quality than          profitable growth through innovative      ment the value proposition of DTH

74 | TV VEOPAR JOURNAL | APRIL 10 | | An ADI Media Publication
                             in home entertainment and establish it as            platform. As per the estimates, operating
                             an enhanced TV-viewing option over cable             losses of DTH operators in 2008-09 were Rs
                             TV. With the discerning Indian consumers             1794 crore. As per ASSOCHAM, cumulative
                             being conscious of the service they opt for,         losses by the end of 2008-09 were more than
                             value added services act as growth drivers           Rs. 5000 crores. ASSOCHAM has urged the Fi-
                             in this respect.                                     nance Minister to withdraw 5 percent customs
                                                                                  duty on set top box (STB) in budget proposals
                             The DTH players are constantly looking for           for 2010-11 in a bid to provide support to DTH
                             newer ways to enhance revenue streams.               industry to advance objectives of digitization.
                             Currently they have put their heads together         The objective behind exempting customs duty
                             with film producers to screen films, within          on STB set top box, is pertinent particularly
                             weeks of their release in theatres. This is          on account of non-availability of components,
                             really a win-win situation for the players as        and other factors required to make STB, as 80
                             well as the film producers. The DTH release          percent of the components are imported.
                             will follow the theatre release, but before the
                             movie is given to the broadcasters for free          For DTH providers now, the emphasis is on
                             airing. Adding new movies on pay-per-view
The market                                                                        providing the best quality service and also
                             basis will give the DTH players an edge. It          additional services such as triple play, which
is witnessing                also helps curb piracy by weaning away view-         will attract and maintain customer loyalty
intense                      ers in smaller towns from pirated discs.             and give added value. The competition with
competition                  The Indian DTH TV industry has been grow-
                                                                                  terrestrial is fierce but the benefits that
among players                                                                     satellite can offer can easily rival the cable
                             ing at a rapid pace since the inception of com-
                                                                                  and telecommunications companies already
to capitalize                mercial services in 2003 on the back of huge
                                                                                  in the game of TV delivery.
on the high                  investments by the existing and new players.
                             Due to superior audio and video quality, the
potential and offer          DTH services are in a position to attract a
                                                                                  DTH is gaining a very strong foothold in the
differentiated                                                                    market. Already the players have planned
                             large number of subscribers. According to RN-
                                                                                  launch of HDTV. Interactive Television and
service to their             COS, the market research firm, the number
                                                                                  DVR are already there in the Indian market.
                             of DTH subscribers in India is projected to
viewers as their                                                                  DTH has an inherent advantage of delivering
                             grow at a CAGR of around 28 percent during
USP.                         2010–2012. Presently, the DTH subscribers
                                                                                  the latest technologies and increasing it’s ARPU
                                                                                  since it is digital and addressable with condi-
                             constitute only a small proportion of the total
                                                                                  tional access (CAS). This enables the operators
                             TV household in the country, presenting a
                                                                                  to provide accountability and reasonable choice
                             vast untapped market.
                                                                                  to the consumers. Another major advantage of
                             The DTH industry is burdened with huge               DTH is that with a small 60-90cm dish consum-
                             growth dampeners in the shape of multilay-           ers can view all 200 odd channels anywhere in
                             ered tax structure aggregating to 59 percent         the country, even in the remote areas.
                             of the gross revenue of DTH operators which
                                                                                       The DTH market in India is relatively na-
                             challenges the economic viability of every DTH
                                                                                       scent but is getting crowded very quickly.
                                                                                                  The future of competition in the
                                                        DTH subscribers                           DTH market is not going to be
                              Provider           No. of subscribers No. of subscribers Additions- in the core DTH service or the
                                                  (million) Dec 31,  (million) Dec 31,   2009     subscription cost. To attract sub-
                                                         2008               2009                  scribers, companies will have to
                              Dish TV           4.70                        6.50         1.80     distinguish themselves from the
                              Sun Direct        2.00                        4.90         2.90
                                                                                                  competition by providing value
                                                                                                  added services via DTH. Tariff
                              Tata Sky          3.00                        4.63         1.63
                                                                                                  issues for DTH are at present be-
                              Big TV            1.30                        2.23         0.93     ing discussed by TRAI and may
                              Bharti digital TV launched end 2008           2.00         2.00     get resolved soon but govern-
                              Videocon D2H* –                               0.25         0.25     ment must do some thing about
                                                                                                  the multiple taxation and heavy
                              Total             11.00                      20.51         9.51
                                                                                                  license fee charged annually from
                              *Launched in May 2009                                               the operators.
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
76 | TV VEOPAR JOURNAL | APRIL 10 | | An ADI Media Publication

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