dealers speak

7/28/2019 Dealers Speak

1/13

The dealer fraternity is unanimous on most

issues. While they are upbeat on business

prospects in the long run, the summer sea-

son was not very promising initially. The last one

month has seen some briskness in sales.

Prices of products across the board, with the sole

exception of LCD TVs, have increased over the last

couple of years. Manufacturers have not been able

to contain the hike in input prices of raw materi-

als, as, steel, aluminum, and copper, and passed

on some of the cost increase to the consumers.

With increasing disposable income, and consumer-

ism on the rise, the consumer has moved up the

value chain. He is quite open to buying premium

range of products, a couple of notches higher than

he would have purchased a couple of years ago.And fully automatic washing machines, DVD play-

ers, frost free refrigerators, and LCD TV sets are

no longer perceived as luxury items.

New products, advancement in technology, the si-

multaneous launch of new models in India and in-

ternational markets are appreciated by trade and

the consumer. They provide the requisite impetus

to sales.

The dealers are mixed in their response to the mo-

mentum provided by the unabated cricket fever

moving from the ICC Cricket World Cup to IPL sea-

son 4. Some felt these events gave a minimal push

to demand, and some said these were one of the

busiest periods, and they recorded huge increase

in sales, up to 80 percent, mainly in TV sets, espe-cially in the fat segment.

Observing the major expansion plans of big retail-

ers and modern retail showrooms, all the dealers

feel threatened for their very existence. Having

better negotiation opportunity, modern retail may

eventually sound their death knell, is the common

fear. The positive ones planned to meet the chal-

lenge with investing in multiple stores. This panic

has not yet spread to tier III cities, semi urban and

rural areas, which are high demand areas, prima-

rily for basic models, and where modern retail has

not yet shown interest.

Dissatisfaction with after-sales service is certainly

lower this year, than compared to the yester years.

In the past when we have interviewed dealers, they

have been almost bitter at the quality and speed of

service, or rather lack of it. This year some grum-

bled, but only half heartedly and in fewer numbers.

Increasing sales volumes, albeit declining margins,

increase in consumerism, availability of latest tech-

nologies and products, and a bright future was the

response of one and all.

TV Veopar Journalinterviews a cross-sectionof dealers across the country.

146 | TV VEOPAR JOURNAL | JUNE 11 | adi-media.com | An ADI Media Publication


2/13

Bhubaneshwar

Raj ElectronicsTURNOVER

2010: `40 crore

2011: `50 crore

On price trends

Prices of LCD and LED TVs

have dropped considerably.

Prices of home appliances in-

cluding refrigerators, washing

machines, and air conditioners

are currently high, a marked

drop is expected in the near

future. Moreover, prices of LG

and Samsung products are on

a southward trend.

On impact of summerseason on sales

The summer season has not been too harsh on the Indian

subcontinent this year. Sales of air conditioners have al-

most dropped by 20 percent this season.

On fast moving

products

The fast moving prod-

ucts are slim TVs and

lower-end LCD TVs.

On impact of

sports events

Cricket World Cup

2011 had quite a pos-

itive impact, with 50

percent growth in the

LCD TV segment.

IPL, however, failed

to create any signifi-

cant impact.

On new products and technologies

Some of the new products introduced in the market are

smart TVs and cinema 3D LED TVs.

On green technologiesConsumers are responding well to latest technologies.

Sales of star-rated appliances have comparatively in-

creased over the years.

On challenges and opportunities

There is an acute shortage of technical manpower in In-

dia, especially at the time of installation of various prod-

ucts. Also, the after-sales service in every company needs

to be strengthened.

On future outlook

Good growth is expected. Prices are being made afford-

able by the manufacturers.

Brands RetailedBrand Products Sales (%)

LG All products 10

Samsung All products 10

Whirlpool All products 10

Voltas All products 10

Godrej All products 10

Panasonic All products 10

Videocon All products 10

Carrier All products 10

Onida All products 10

Hitachi All products 5

Haier All products 5

PK Biswal

Bangalore

Unilet

TURNOVER

2010: `60 crore

2011: `80 crore

On price trends

The price of home appliances has increased by 5 per-

cent. However, LCD TV prices have dropped by 510

percent.

On impact of summer season on sales

The sales of air conditioners have decreased by about

2025 percent in 2011. This year the summer as yet is

not very intense and in Bangalore rainfall has already

begun, which in

turn has negative-

ly impacted sales.

On fast moving

products

The fast moving

products at the mo-

ment are LCD and

LED TVs.

On impact of

sports events

Sport events have

a positive impact on sales. A growth of 25 percent wasrecorded in the sales of LCD TVs during the Cricket

World Cup 2011.


3D TVs have been launched in 2011; however, there

are certain limitations. For instance, 3D TVs need 3D

transmission and viewers are not very comfortable

wearing the special glasses to watch 3D content.

On green technologies

The consumers are increasingly looking for star rated

air conditioners and refrigerators.


The rise in price of the various home appliances and

consumer electronics products is a major concern. The

profitability has been affected since dealers have to

reduce their margins to satisfy the customers. How-

ever, the economy is growing and with the increas-

ing number of households in Bangalore, the business

prospect seems good.

On future outlook

The future looks bright. We are planning to expand

in tier II cities.


LG All products 20


Whirlpool All products 8-9

Godrej All products 8-9

Onida All products 3-4

Philips All products 3-4

Sony All products 20

Panasonic Al l products 10

IFB All products 3-4

Humayun Fiaz

An ADI Media Publication | adi-media.com | JUNE 11 | TV VEOPAR JOURNAL | 147


3/13

BUYERS GUIDE

Dealers Speak

Ankleshwar

Advancetronics

TURNOVER

2010: `7 crore

2011: `10 crore


Business in the month of May has been adversely af-

fected with air conditioners sales reducing by 35 per-

cent. However, sales of refrigerators have increased

this season. The replacement market has picked up

with consumers demanding the latest technology.

On impact of sports events

There has been a signicant impact of sports events

on sales. A growth of 5070 percent has been recorded

in the sales of LCD TVs during the Cricket World Cup

2011 and the IPL season, 2011.


Cinema series 3D

LED launched by

LG is the latest

technology intro-

duced in the world

of television.

On green

technologies

Customers arenow aware ofgreen

technology. They

do not mind even

if they have to pay

slightly more as

they look for the benefit they receive in the long run.

There is a high demand for 5 star rated refrigerators.

Customers, however, prefer buying 3 star rated air

conditioners.


Small dealers create confusion by unreasonably sell-

ing products at lower prices so that they are able tomeet their sales target. This creates problem for the

large dealers who have to sell products at the regular

rates. Consequently we report high turnover, albeit

lower margins.

On future outlook

The market is expected to grow at a rapid rate. With

the rising number of households, we expect business

to ourish. The purchasing power of todays youth has

increased and luxuries are fast becoming necessities

so the future looks promising.


LG All products 20


Whirlpool All products 8-9


Onida All products 3-4

Philips All products 3-4

Sony All products 20


IFB All products 3-4

Jitubhai Gandhi

Asansol

Reco Electronics

TURNOVER

2010: `12 crore

2011: `15 crore

On price trends

Prices of air conditioners and refrigerators have increased,

whereas the prices of washing machines are stable. As the

prices of LCD TVs have reduced from high to reasonable,

sales of LCD TVs have grown exponentially with almost

1520 LCD TVs selling per month from our counter.


As West Bengal is a humid state, air conditioners have be-

come a necessity. Both split and window air conditioners

are selling well in the region, with a preference for split

ACs perhaps due to their aesthetics. Commendable saleshave been recorded in the last two months.

On fast moving

products

The fast moving prod-

ucts are refrigerators

and air conditioners.

On impact of

sports events

A good number of LED

TVs were sold dur-

ing the Cricket WorldCup 2011. IPL has

also driven the sales

to a large extent.

On new products

and technologies

3D and smart TVs have been launched in 2011. However,

people are embarrassed to wear glasses as required in the

case of 3D TVs.


The consumers have started understanding the value of

star-rated products. They are gradually becoming greenconscious. Appliances with 5 star rating are being pre-

ferred.

Challenges and opportunities

During the high sales season, the untimely delivery at the

manufacturers end poses a problem. Every customer looks

for a unique product, which offers value for money. Timely

promotional offers by manufacturers help close sales.

On future outlook

In the coming months, we anticipate a signicant growth

of 3035 percent in all segments.


LG All products 10





Sony Consumer

electronics

10

Nikon Digital cam-

eras

8

Canon Digital cam-

eras

8

Hitachi ACs 2

Blue Star ACs 2

Swapan Kumar Choudhury



4/13

Margao

Lotlikar EnterprisesTURNOVER

2010: `8 crore

2011: `1213 crore

On price trends

As demand accelerated, prices spiraled upward. Also,

there has been a significant increase in the cost of steel

and other raw materials, which led to a higher manufac-

turing cost.


The weather is normally the driving force behind sales

in the summer season. But this year, summer has been

very disappointing. Sales of air conditioners have been

far below expectations.

On fast moving products

All products of LG,

Samsung, and Go-

drej are fast mov-

ing.

On impact of

sports events

IPL does not drive

significant sales in

Goa. We look for-

ward to football

tournaments here.

However, during

the Cricket World

Cup 2011 there was a 20-percent increase in the sales

of LCD TVs.


Smart TV is the latest technology introduced in the tele-

vision industry.


The response to green technology is very good. The high-

er the number of stars for any product the more the cus-tomers are attracted toward it.


Modern trade is the new threat to the traditional retail

stores. But we are safe in Margao as of now. The compe-

tition has increased with the entry of new players in the

market. Consistent effort is required to push sales.

On future outlook

The future looks bright with good growth and sales. The

way the market is growing, it seems that soon LCD and

LED TVs will replace CRT and CTVs.

Brands Retailed

Brand Products Sales (%)

LG All products 40




IFB All products 5


Ernakulam - Kottayam

Pittappillil AgenciesTURNOVER

2010: `75 crore

2011: `110 crore

On price trends

Prices of LCD and LED TVs

are going southward. Price of

the premium range has gone

up to accommodate the ever-

increasing cost of the manu-

facturing material; however,

the end-prices of the economy

range are stable. This ensures

that the brands cater to all

buyers in every category.

On impact of sports events

Earlier, sports events helped push sales for color TVs and

LCD TVs, but that is not the case now. The impact today

is not as high as it was before.


The response of the customers is slow toward new launch-

es like smart TV and 3D TV, as most of these products are

aimed at high-end customers.

On green

technologies

The green technology

has a significant ef-fect on the consumers.

People are increas-

ingly looking for high

star rated appliances

and electronics. They

have become cautious

about the benefits

these products pro-

vide in the long run.

On challenges and

opportunities

Higher operatingcosts and lower margins, and requirement of higher capi-

tal investment are some of the major challenges. The cus-

tomers of today look for better showroom ambience and

demand a wider range of products. The high technology

products attracting the customers and the growing in-

come level highlight a good prospect for the trade.

On future outlook

We have plans to renovate all our old showrooms so that

we are able to provide better ambience. We would also

focus on the leading brands to improve customer footfall.

Also, we would be adding more counters and introduce

the latest computer software.


LG All products 20

Samsung All products 15Videocon All products 5


Godrej All products

other than

furniture

6


Philips All products 3

Sony All products 5


Voltas All products 5

Small appli-

ances

Mixers, juicers

and grinders

18

Peter Paul PittappillilHemant Lotlikar



5/13

BUYERS GUIDE

Dealers Speak


LG All products 15





Godrej Refrigerators

and ACs

7

Sony All products 7

Others 20

Chennai

Jayam & Company

With the late onset of summer and the

state elections, sales did not really pick

up. Price hikes by most brands has also nega-

tively impacted sales. There is not a very sig-

nificant impact of sports events on sales. IPL

had minimal impact. Cricket World Cup 2011

failed to promote enough sales as well.

There is extreme focus on innovation for high-end products in 2011. 3D Cinema

(FPD), wonder door (DIOS), and inverter AC (air cooling) are some of the latest

products. Having been in this trade for three decades, we have a 3e pronged ap-

proach explore, expand, and enterprise.

S Jayaprakash

Bangalore

Ashok CombinesTURNOVER

2010: `13 crore

2011: `18 crore

The weather has gone haywire in Bangalore this year. It

has already started raining in May instead of the usual

arrival in the month of June. The sales in AC segment have

deeply suffered. Prices of air conditioners were initially high-

er in the months of February and March; but there has been

a decrease in the price, by almost 15 percent. In spite of this,

the AC sales have dropped by 2025 percent. A decline in

growth of the AC segment is expected in Bangalore in 2011.

The fast moving products are refrigerators, washing ma-

chines, and LCD and LED TVs.

During the Cricket World Cup 2011, there was a breakthrough in demand for

LCD and LED TVs. However, there was no turnaround due to the IPL this year.

The reason for good sales is usually attractive schemes for the consumer during

these events. At present there are regular sales.

There is a very good response from the customers on the green technology. Cur-

rently, they prefer 3 star rated products to 5 star rated products due to the sub-

stantial difference in price.

The competition that creates unnecessary confusion is one of the concerns. Differ-ent showrooms offer freebies to their customers, like free installation. But while

they do this, they increase the price of the product, which confuses the consumers.

This could hamper our image in the days to come. The penetration in the con-

sumer electronics segment is very low. A wide variety of products are regularly

launched, and there is a new technology to sell every time, which creates better

opportunities to grow.

It is a growing market and the consumers have a significant amount of disposable

income. They are becoming gadget freaks and are ready to purchase it through

any means, be it cash or credit card. A good percentage of growth is expected.

Sharan Wadhwa


LG All products 15


Videocon Washing

machines

10

Onida Washingmachines 10

Siemens Washing

machines

10

Hitachi ACs, refrig-

erators

10

Voltas ACs 10

IFB Washing

machines

15

Toshiba Inverter ACs 3-5


LG All products 100

ChandigarhModern SalesTURNOVER

2010: `11 crore

2011: `13 crore

Our fast moving products include LCD TVs, plasma TVs,

and air conditioners. While one refrigerator is sufficientfor a home, one air conditioner is required for every room.

This year, sales in April were slow, in May we registered a

growth of 70 percent.

Both LCD and LED technologies are new to the market.

When LCD TVs were introduced, they were highly priced and

did not find favor with the buyers. With the passage of time,

manufacturers did expand their range to include economy

models.

This year, a growth of at least 2025 percent in this sector is expected. Incentives

are lucrative, but if the gap between the modern retail stores and the dealers con-

tinues to widen, it will create a life threatening situation for our business.

Satish Gupta



6/13

Jaipur

Videon Electronicsand TelevisionTURNOVER2010: `10 crore

2011: `20 crore

Sales have been excellent due to the hot summer season in Jaipur. There

has been a growth of almost 40 percent in the sales of air conditioners.

Inverter ACs are seeing an increasing demand with the customers and we are

also focusing on them. The fast moving products are refrigerators alongwith 3D

TVs.

Ours is a relationship-based business,where people put more stock on the word of

the dealer rather than on the prices of the

modern retail market. This has ensured a

stable business for us, with very less effect of modern retail. There is a good

response in the consumer electronics segment to the products launched featuring latest technologies. Brands must

focus on the promotion of their premium products.

Kamal Kandoi


LG All products 100

Gandhidham

ShivamTURNOVER

2010: `8 crore

2011: `10 crore

The new entrant, smart TV (launched by Samsung and

LG) is expected to provide the requisite impetus to sales.

The sales of Blu ray DVDs have not yet picked up, however,once the price goes southward, the trend may change.

The future looks bright for retailers who are focused. LCD

and LED TVs sales are

expected to grow with

declining prices. Side-by-

side refrigerators, lap-

tops, and digital cameras

also had good growth. Saturation in these segments is quite unlikely due to con-

tinuous innovation. We expect a 2025 percent growth this year.

Companies should focus on after sales services. This would strengthen their brand

equity and their sales would increase. The lack of cooperation from the companies leave the retailers at the mercy of

the service franchises and impacts the business negatively.

Pappu Jaswani


LG All products 50


Onida ACs 8

Carrier ACs 7


LG CRT TVs, LCD

TVs, refrigera-

tors, washingmachines

30

Samsung Refrigera-

tors, washing

machines,

ACs, CRT TVs,

LCD TVs

20

Whirlpool Washing

machines,

refrigerators

10

Philips CRT TVs 5

Sony LCD TVs 10

Panasonic CRT TVs,

refrigerators,

ACs

10

Voltas ACs 10

IFB Washing

machines

5

Jhumri Telaiya

Chatterjee Sales

TURNOVER2010: `39 lakh

2011: `81.5 lakh

The strong foothold

of dealers in consum-

er electronics segment in

2010 has given rise to a

new retail environment.This in turn is being

shaped by intensifying

the competitive pres-

sure and accelerating the

products life cycle. The

price war, with the entry of new players in the Indian market, can be ad-

dressed by strategic planning to get more out of the existing showrooms. In

addition, urban and semi-urban markets seem to be more promising than the

metros.

Tier II and tier III cities should show results this year. With the MNCs in con-

sumer electronics industry having become comfortable, the future seems to be

bright.

The lack of a well-developed distribution network makes it difficult to penetratethe fast growing rural economies. For enhanced future growth, there needs to

be an improvement in the distribution network of the semi-urban market.

Sumit Chatterjee



7/13

BUYERS GUIDE

Dealers Speak




Voltas ACs 10


Haier All products 15

IFB Washing ma-

chines, micro-

wave ovens,

dishwashers

2

Lucknow

Sadana Electric Stores

TURNOVER

2010: `16 crore

2011: `18 crore

This summer saw a substantial

depression in demand for cooling

products. Sales have dropped by al-

most 20 percent. There is, however, a

prospect of almost 100 percent growth

in the coming years. With increasing

purchasing power, luxuries are fast

becoming necessities. Moreover, lu-

crative finance schemes would propel

sales to a great extent.

Presently, we face a lot of competition from modern retail. Serious thinking isrequired on this subject. The industry must provide a level playing field in the

entry-level products in each segment, so that the small dealer network not just survives, but also grows.

Devendra Sadana


TCL CTVs, LCD

TVs, ,washing

machines,

induction

cooker

70

Salora CTVs 10

Haier Refrigerators 10

Whirlpool Refrigera-

tors, washing

machines

5

Onida ACs, CTVs 5

Palwal

A-1 Electronics

PlazaTURNOVER2010: `50 lakh

2011: `60 lakh

Almost every fort-

night a new technol-

ogy is launched in India.

The life cycle of the prod-

ucts, thus, is increasinglygetting shorter. After-

sales service is another

major problem. Adequate

number of service centers

are not present in tier IIManjeet Singh Bhadana

and tier III cities. Brands should also bring in better strategies to promote sales

in small towns. As for opportunity, we have a strong and loyal customer base so

we have a long way to go.

The future seems to be bright for the large dealers with sound networking across

the industry. Small dealers would have to face the real challenge in the days to come.


LG All products 40


Godrej ACs 10

Sansui All products 20

Kelvinator Washing

machines,

refrigerators

10

Visakhapatnam

Sri Rama Electronics

TURNOVER

2010: `3 crore

2011: `3 crore

Summer did not favor sales in

2011. There has been a 30-percent

downfall in the sales of cooling prod-

ucts. We face a serious challenge as we

are losing our customers and there is

tremendous pressure to improve our

turnover. We have to cut down on ourexpenditure and focus on profit.

A number of new products and tech-

nologies have been introduced in theRama Krishna

market which give sales the requisite impetus. Some of them include smart and 3D TVs as well as the wonder

door (DIOS) in the refrigerator segment. As the price difference between 2D and 3D TVs narrows, there would be a

marked rise in the sales of 3D TVs in India.

With the increasing number of households and the rising purchasing power of the people, market would certainly

grow in leaps and bounds. Innovation in technology is another factor which will push sales. Thus, the future is

bright.



8/13

Brands RetailedBrand Products Sales (%)LG All products 35


Toshiba All home ap-

pliances

35

Sony All consumer

electronics

products

15

Mumbai

Virani ElectronicsTURNOVER

2010: `8 crore

2011: `8.5 crore

Sales have been poor this summer, with

decline in sales by almost 35 percent.We face tough competition from the modern

retail outlets. The chain retail showrooms

procure products in bulk and get larger dis-

counts from manufacturers. This in turn

leads to lower selling prices at these stores.

There will definitely be a marked growth

in the days to come. Though the incentives

might be lucrative, the increasing gap be-

tween the modern retail stores and the dealers will create a live-or-die situation for our business. We are planning to

add more showrooms at different locations.

Sri Virani


Mumbai

Market Movers

TURNOVER2010: `16 crore

2011: `16 crore

Summer is usually a busy month for selling compressor-

based products. The direct cool refrigerators sales have

shown consistency in performance but the air conditioners

sales have flopped. We do business with small dealers. From

their counters, the sales of air conditioners have reduced byalmost 40 percent. The sales of CRT based color televisions

have shown a clear and definite sign of slowdown in the city

too.

In a mature market like Mumbai, the regular trend, espe-

cially within the low income group, is to opt for refrigerators

and semi-automatic washing machines. Whereas the high-income group prefers larger sized frost free refrigera-

tors, fully automatic washing machines, LCD and LED TVs, and split air condi-

tioners. These products will continue to grow at a fast pace.

As distributors, we supply entry-level products to the dealers. I have not come

across any breakthrough technology in any of these products. However, cus-

tomers now have become more particular about power rating stars on different

appliances. The LED TVs can be considered as new technology. Customers who

fall in the high-income group are the chief targets who prefer going to chainstores and modern retail formats.

Competition is tough. With brands and dealers competing with each other, the

wholesalers have made the market highly non-remunerative for a distributor.

The operating margins for dealers and distributors are not healthy. Several

dealers have either closed down or converted into brand shops. Presently, the

market is polarized among chain stores, brand shops, and low class dealers.

The need of the hour is to work on distinct strategies for each of these segments

so that every segment survives and grows with the industry. The market is

growing and the industry needs to take an initiative in professionalizing its

sales network by bringing in fair practices. The strategies have to be directed

toward selling to the customer and not to the dealer. The incentive programs

must be aimed at secondary sales at each level and not at the primary level. To

make this strategy effective, it is important that IT infrastructure be upgraded and integrated with the entiresales channel.

The dealers, manufacturers, and micro-financiers need to come together under a tripartite agreement to provide

finance to the needy customer. Zero percent finance is not a solution as it gives finance to the person who is in a

position to pay upfront. Some serious discussion and action might be required in this area. Risk sharing formula

and risk coverage can also be worked out.

The B-class dealers in Mumbai are a dying species. The small dealers will probably contribute not more than

35 percent of the total market, whereas, the retail chain stores and modern retail format will have the lions

share.

Rajendra Malushte

-


Videocon Refrigerators,

CTVs, wash-

ing machines,

LCD TVs

40

Godrej Refrigera-tors, washing

machines

30

Philips DVD players,

home theat-

ers, speakers

20

Acer Laptops Laptops 2

Kent Puri-

fiers

Water puri-

fiers

3

Haier Refrigera-

tors, washing

machines

5


9/13

BUYERS GUIDE

Dealers Speak


Whirlpool ACs 10-15

Godrej ACs 30

Onida ACs 35

Lloyd ACs 10-15

Bangalore

Iceberg SystemsTURNOVER

2010: `30 lakh

2011: `40 lakh

The sales in summer this year has been

affected due to early rainfall in Banga-

lore. Air conditioners in the month of Maysaw a drop to quite a large extent.

We are looking forward to better sales

and also hope that brands will launch new

promotional campaigns to attract the con-

sumers.Hari Krisna



Samsung,

LG, Daenyx,

Videocon,

Intex, Sansui

All products 20

SecunderabadSree Balaji Enterprises

TURNOVER

2010: `1.8 crore

2011: `2 crore

Strikes are too frequent in Secun-

derabad, which hugely impacts

the business. This year has been bad

because of lower sales in summer. The

competition is also tough. We have to

come out with strategic plans to at-

tract the customers.

Not much growth is expected in most

of the segments with the exception of LCD and LED TVs. DTH will wit-

ness a growth of at least 25 percent in the coming months.S Bala Swamy


LG All products 18


Whirlpool All home ap-

pliances

10


Sony All consumer

electronics

25

Toshiba TV, washing

machines,

refrigerators

10

Siemens Washing

machines,

refrigerators

2

IFB Washing

machines,

refrigerators

5

Surat

Pushpa Agencies

TURNOVER2010: `22 crore

2011: `28 crore

Summer in India is not very harsh

this year, so air conditioner sales

have considerably gone down. Refrig-

erators sales have increased by 1012

percent. Washing machines are also

being sold at this time owing to the ex-

pansion in Surat with several upcom-

ing projects in the city. A little later,

marriage season will start giving fur-

ther boost to the market.Raju Bhai Shah

IPL was played during school examination time, so there was not much increase

in the sales. However, Cricket World Cup 2011 was successful in driving the

sales of LCD TVs up to 40 percent.

Challenges from the customers are in terms of after-sales services. In the high

selling season, usually after-sales service tends to be poor. Software unavailabil-

ity for high-end technology products is another problem. Again 3D players and

3D CDs are very expensive and beyond the reach of a common man.

In the times to come, Indian market will grow rapidly with new technologiesdeveloping at short intervals. Dealers will have something new to offer to the

customer who is always on the lookout for the latest product. This is particularly true of the consumer electronics

segment. In the coming year, conventional color TVs will lose their customer base to LCD TVs. Also, DTH is showing

a very strong growth among the customers and will continue to do so.



10/13


Videocon CTVs,

refrigerators,

washingmachines

5

Godrej Refrigerators,

washing ma-

chines, ACs,

microwave

ovens

60

Toshiba LCD TVs, LED

TVs, refrigera-

tors, washing

machines

10

Voltas ACs 25

Bhatinda

Jiwan ElectronicsTURNOVER

2010: `25 crore

2011: `35 crore

The time has even-

tually arrived when

the white goods industry

is on a price hike war. In

the consumer electron-

ics segment, on the other

hand, the companies at

present are competing, to

decrease the price even at

the cost of quality of theJiwan Singla

various products.

Consumers in the Bhatinda region are not quite aware ofgreen technologies. Nei-

ther are the companies making the required effort for the same.

Price war among various companies is a big challenge. However, there always

remains an underlying opportunity to provide the consumers with the best buy to

enhance our own business growth.


LG All products 60

Godrej Refrigera-

tors, washing

machines

20


Mathura

Singhal SonsElectronics

Agencies Pvt. Ltd.TURNOVER

2010: `9 crore

2011: `12.5 crore

Prices of air condi-

tioners, washing ma-

chines, and refrigerators

have increased. This is

prompted by rise in the

cost of raw inputs: steel,

copper, and petrol.

Increased sales have

driven the prices of LCD TVs southward.

New launches such as, LED and 3D TVs and a new range of

refrigerators and air conditioners from Godrej and LG are

encouraging.Bipin Singhal


LG All products 30

Samsung ACs 10

Voltas ACs 25

Hitachi ACs 5

Carrier ACs 10

Panasonic ACs 10

Electrolux ACs 5

Onida ACs 5

Patna

Electronics World

There is a 30-percent

decrease in the sales

of air conditioners. Early

rainfall seems to have ad-

versely affected the sales

of the cooling products

this summer.There is a noticeable im-

provement in sales of

televisions during sportsSanjeev Khurana

TURNOVER

2010: `8 crore

2011: `10 crore

events, particularly during the Cricket World Cup 2011, with sales of LCD and

lower end LEDs increasing by almost 20-25 percent.

After-sales services for air conditioners are very important, and companies tend to lag behind on their deadline of

2448 hours. Untimely delivery on the part of the manufacturer poses a problem in the high sales season too.

With rising disposable income and low penetration in Bihar, the trade is waiting for the monsoons to recede.

The fast emerging, large-scale retail chains pose a major threat, and opportunities do not seem to be very good. We

are looking at having multi-stores.



11/13

BUYERS GUIDE

Dealers Speak


LG All products 15





Godrej Refrigerators,

and ACs

7

Sony All products 7

Others 20

Chennai

Jayam & Company

With the late onset of summer and the

state elections this summer, sales did

not really pick up. Price hike by most brands

has also negatively impacted the sales.

There is not a very signicant effect ofsports events on sales. In this season, IPL

had minimal impact. Cricket World CupS Jayaprakash

2011 failed to promote enough sales as well.

There is extreme focus on innovation for high-end products in 2011. 3D Cinema

(FPD), wonder door (DIOS), and inverter AC (air cooling) are some of the latest

products. Having been in this trade for three decades, we have a 3e pronged ap-

proach explore, expand, and enterprise.


LG All products 60



Indore and Ratlam

Ibrahim Brothers

Despite it not being very hot this year, cooling products like air conditioners

and refrigerators are selling briskly. AC business is in its initial sales phase in

places like Indore and Ratlam. There has been a

100-percent growth in the sales of air condition-

ers. Single door direct cool refrigerators of 200 L

and above are moving fast.

The demand for CTVs, at, and ultra-slim TVs

has declined with the entry of LCD and LED

TVs in the Indian market. Now, it is the age ofKasim Ali Pathriya

3D and smart TVs. There is expected to be an increase of 1020 percent in CTV sales, the key growth driver being

LCD TVs.

The major challenge is from modern trade. Brands offer additional discounts to customers at these counters, which

mar the business in traditional retail shops as ours. This will have to be countered by adding more stores and aggres-

sive advertising. We are working to improve our customer services and store ambience.

TURNOVER

2010: `12 crore

2011: `15 crore




Toshiba Audio video

products

10

IFB All products 5

LG ACs 5

ETA General ACs 10

Hitachi ACs 10Voltas ACs 10

Daikin ACs 10

New Delhi

Aggrellios & Company

TURNOVER

2010: `7 crore

2011: `9 crore

The main challenge that we face

from customers is related to com-

petitive pricing and delay in servicing.

There is a lot of opportunity in the

high-end products, as the customers

are shifting from low-end products.

They prefer LCD and LED TVs more

than CRT TVs and fully automatic

washing machines to semi-automatic

ones.

The market condition is not very good. The trend is shifting toward large formatstores, so the future does not seem to be very promising for the small stores. Now-

adays, the customers want a bigger display and more variety to choose from.

Rajiv Aggarwal

Edited, Published, & Printed by Anju Arora on behalf of ADI Media Pvt. Ltd. N-49, Greater Kailash-I,New Delhi-110048; Printed at Tara Art Printers Pvt. Ltd. B-4, Hans Bhawan, B.S.Z. Marg, New Delhi-110002.



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13/13

dealers speak

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