World Cup fails to score for TV makers

Kolkata: The FIFA World Cup has failed to deliver the sales boost India's television makers have traditionally counted on during major sporting events. TV sales remained largely stagnant in June year-on-year, against the 15-25% jump the industry expects during such tournaments, according to manufacturers, retailers and market researchers.Companies attributed the weak demand to a combination of factors: television prices have risen 15-20% over the past six months following a surge in memory chip costs, many matches are being telecast at inconvenient hours for Indian viewers, and an increasing number of consumers are choosing to stream games on smartphones instead of buying bigger-screen TVs. Prices of memory chips used in televisions as well as smartphones, tablets and laptops have escalated two-three times since November last year.Even in football strongholds such as Kerala, Goa, West Bengal and the Northeast, the initial uptick in demand proved short-lived for the quadrennial international men's football tournament, which is being co-hosted by Canada, Mexico and the United States from June 11 to July 19 this year.132170262"Television prices have risen sharply since January, and that has hurt volume growth. Even in states like Kerala and West Bengal, the World Cup has resulted in only a marginal 2-3% increase in sales," said Satish NS, chief executive of Haier India, one of the country's top five television makers.Pulkit Baid, director at Great Eastern Retail, said TV sales in Kolkata initially increased about 30% during the tournament before slowing sharply. "The momentum quickly tapered to around 10%. TV prices are at their peak," he said.Also read | Prices climb, but low loan rates keep homes affordableAccording to Counterpoint Research, TV volume or unit sales declined 5-6% in January-May from a year earlier as consumers deferred discretionary purchases amid a weak macroeconomic environment. June, however, saw a modest 1-2% year-on-year increase, driven largely by World Cup-related demand in urban markets."Consumers remained focused on buying air-conditioners, refrigerators and air coolers during the peak summer season. Some brands timed their marketing around the FIFA World Cup, which led to a marginal recovery in June," said Anshika Jain, principal analyst at Counterpoint Research.To be sure, some smaller brands in India benefited from aggressive promotions. Hisense, a global sponsor of the FIFA World Cup, reported high double-digit sales growth in India, although the broader television market remained subdued.Electronics retailer Vijay Sales also reported flat volume growth, while sales by value increased 7-8% because of higher prices. Director Nilesh Gupta said the replacement cycle has lengthened after the Covid-19 surge in purchases of larger-screen televisions."Consumers who bought 55-inch or 65-inch TVs a few years ago have little incentive to upgrade again, especially because an even larger television than this won't fit in their homes," Gupta said.Avneet Singh Marwah, chief executive of Super Plastronics, which manufactures Kodak, Thomson and Blaupunkt televisions in India, said the customary demand surge during the FIFA World Cup has failed to materialise because repeated price increases have dampened consumer sentiment. The company is among the country's largest television sellers on e-commerce platforms.Television manufacturers unleash marketing campaigns around marquee sporting events such as the FIFA World Cup, the Cricket World Cup and the Olympic Games.

from Economic Times https://ift.tt/4Agx8f9