Is it necessary for TV brands to join offline marketing?
According to IDC Study, 40% of the TV sets sent to India in the April-June quarter of 2019 were smart TVs, growing 50% y-o-y.
After Xiaomi enjoyed success with smart TVs, other smartphone brands have been trying the big screen. Realme is all set to reveal its smart TV at the 2020 Mobile World Congress, while Nokia propelled a smart TV with e-commerce giant Flipkart late last year. Micromax, Oneplus, and Motorola too, are tinkering in this crowding category.
As per the IDC Research, 40% of the TV sets sent in India in the April-June quarter of 2019 were smart TVs, rising 50% y-o-y. As per its global quarterly smart home device tracker, Xiaomi was the front player in this market in Q3 2019 with a 33% market part, followed by Samsung with a 14% share, Sony with 10%, LG with 13% and TCL with 9% share.
Larger margins contributed by smart TVs, as opposite to the lower margins derived from smartphones, is what has started the interest of smartphone players in this category. Prabhu Ram, head, CyberMedia, the industry intelligence group mentions, “Taking the supply chain framework into consideration for smartphones and smart TVs, we see they are similar, smartphone brands come across very low restrictions for entrance in the smart TV section”.
Most of the businesses are tapping the eCommerce platform to get a strong g foothold in the market. OnePlus has tied up with Amazon and Motorola & Nokia are tying up with Flipkart to launch their smart TVs.
Adarsh Menon, head of Private Labels, furnishings, and electronics at Flipkart had something interesting to say, “Now, 86% of TVs sold on Flipkart are smart TVs. This is because such as the rise in internet usage, uptake of video and OTT content and improved disposable income,”
Motorola’s smart TVs start at just Rs 13,999 (32 inch) and goes up to Rs 1,19,999 (75 inch). Nokia has only one variant to offer in the market — a 55-inch smart TV at Rs 41,999, while OnePlus’s smart TVs are in the premium segment.
Specialists think that entering the offline space is important to create a significant share in the market which isn’t going to be easy for those online players.
“Stuffing stock is a difficulty because in the space they will stock one television unit, they will stock 150 phones. Moreover, it’s a really difficult purchase, so displays are necessary,” mentions Navkendar Singh, director of research, IDC India.
Having trusted after-sales assistance, too, is important. According to Shobhit Shrivastava, a research analyst at Counterpoint Research, major businesses like Samsung and LG do well offline. “They have built their retail province over the years and have after-sales help even in tier II and III cities, they’re going to give strong competition to members trying to tap the offline channel now,” he adds.
Specialists predict that since the cities beyond tier I and II are a major market for this section, smartphone makers will have to build a strong presence to create a demand.