Expert Speak PDF

Business Projections
for IPTV
Shyamal Ghosh, IAS (Retd.)
Chairman, IPTV India Forum
IPTV service scenario in India

It is expected that IPTV service will
increase the user density across the
country by being able to extend the
benefits of broadband to television
sets in one million homes by 2010.
BSNL and MTNL have launched
IPTV services on their networks
with their franchisees. Bharti has
launched its commercial service in
NCR Delhi in January 2009. Reliance has launched friendly trials but
is yet to start commercial services.
IPTV business challenges in India

IPTV has to compete with the existing cable TV and DTH services,
which are growing at a much faster
pace. Telecom players are not very
aggressively pushing triple play,
which can increase their penetration of basic telephony. TRAI performance indicator report shows a
declining trend in 40 million basic
telephones, whereas mobile phones
have been increasing multifold to
reach 350 million subscribers.
Television is driven by content
which comes from broadcasters,
who view IPTV to be in a nascent
stage and for a niche market. They
therefore demand high content
fee due to a low subscriber base.
Regulation and policy framework
for IPTV is still evolving with the
announcement of IPTV policy
guidelines and amendment to the
guidelines for downlinking feed to
the IPTV platform. Currently, it
is restricted to only regular satellite feeds and there is no room for
Internet-based channels due to lack
of monitoring/censorship.
IPTV services require a sizeable upfront investment for setting up net-
work operating centers for content

delivery. To launch premium services, operators will have to invest in
content. Since it has to compete with
cable TV and DTH, the ARPU is very
low and therefore return on investment has a long gestation period.
For IPTV service to reach homes, private telecom operators require rights
of way (RoW) permission which is not
easily given. The RoW permission requires high fee as demanded by the
local municipality. The last mile local loop unbundling is not permitted
by the government resulting in slow
progress in broadband access. Currently, broadband users are only 4.3
million and the government targets
to achieve 20 million by 2010, which
is a Herculean task.
with personalization, interactivity,

and other customized services.
The key driver for IPTV business is

that it is considered as a potential
revenue earner in the next couple of
years. The target set is one million
subscribers by 2010, ARPU of Rs.
350, and total revenue of Rs. 35 crore.
IPTV will emerge fast as a premium
service provider and would be in a position to attract top line subscribers in
top 67 cities, which will further boost
revenues. IPTV can be coupled with
other services such as video conferencing, VoIP, e-Learning, e-Governance,
home surveillance and disaster management. Availability of niche content
due to its interactivity services like
video on demand, gaming, user-generated content, and social networking
will add to its unique advantage.
Piracy cost pay-TV operators and

broadcasters in Asia USD 1.75 billion (Rs. 8750 crore) in lost revenue
for the year ended June 2008, according to a rough estimate by an
industry association. The major
amount some USD 1.1 billion (Rs.
5500 crore) in lost revenue reportedly comes from India. The loss of
revenue to content providers is also
a loss of revenue to the government.
With the emergence of convergent
technologies, it is important to have
a standard for IPTV as well. The
International
Telecommunication
Union (ITU) has already defined
standards for IPTV. ITU has three
distinct parameters of watching consumers interest, content providers
interest, and network operators/
service providers interest. Telecom
Engineering Center of Department
of Telecom is in the process of making generic requirements for IPTV in
the country.
IPTV service can be seen as a clear

differentiator as it can easily combine TV viewing with walled garden
services and provide best of both.
The individual experiences from
lean back to lean forward position
The quality of service (QoS) and quality of experience (QoE) are also very
important for delivering IPTV services. The Telecom Regulatory Authority of India (TRAI) is framing IPTV
QoS norms and parameters.
An ADI Media Publication | adi-media.com | MARCH 09 | TV VEOPAR JOURNAL | 11
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Free Color Television

Scheme for the People
of Tamil Nadu
CS Narayanan
SG DM -II (PID)
Electronics Corporation of Tamil Nadu Limited
he Honble Chief Minister of

Tamil Nadu, on the floor of
the legislative assembly on
the motion of thanks to the Governor on 30.05.2006, has announced
that for providing entertainment to
women and to enable them to acquire
general knowledge, the scheme for
free distribution of color television
sets will be commenced on September 15, 2006 on the occasion of the
birthdays of Perarignar Anna and
Thanthai Periyar E.V.R. It was also
announced that this scheme will be
implemented in a phased manner.
The Government of Tamil Nadu has
announced that all the households
in Tamil Nadu state that do not
The novel scheme

of free distribution of
14 inch color TV sets
from state funds to
households in Tamil
Nadu state that do
not have color TV sets
has been very popular
all over India and the
electronic industry
circle due to its extreme
transparency.
have color TV sets would be provided with free 14 inch color television
sets from state funds. Electronics
Corporation of Tamil Nadu Limited
(ELCOT) has been nominated as
the procurement agency as per government order vide G.O.Ms.No.3 Information Technology Department
dated 20/06/2006.
In this connection, the government
has constituted a technical committee comprising members from
Anna University, Indian Institute
of Technology and a representative
from CEAMA (Consumer Electronics and Appliances Manufacturers
Association). The technical committee has finalized the technical
specification of CTV based on IS
Standards and to have 2 year warranty period.
The technical specifications were
approved by the All Party Legislative Members Committee headed by
the Honble Chief Minister of Tamil
Nadu. The order finalization and
quantity allotment to each supplier
were also finalized by the All Party
Legislative Members Committee
headed by the Chief Minister.
Expected Number of Beneficiaries - 130 lakh
Phases
Phase I (National Competitive
Bidding Tender 30,000 units (2006)
(Completed)
Phase II (International Competitive Bidding) 2,500,000 units (2007)
(Completed)
Phase III (International Competitive Bidding) 3,750,000 units (2008)
(Completed)
Phase IV (International Competitive Bidding) 4,162,500 units (2009)
(Commenced)
Phase V (ICB Tenders will be
floated by Sept 2009) - 2,500,000
units (2009-2010)
Under Phase-I, 30,000 CTV sets
were procured from three suppliers during August 2006 and the
programme was formally launched
on the 15th September 2006 by
the Chief Minister near Chennai
city at Kancheepuram District, the
birth place of Perarignar Anna. The
CTV sets had been despatched to
the beneficiaries of Periyar EVR
Samathuvapurams in the Districts
@ 100 nos per Samathuvapuram,
slum clearance board tenements in
Chennai district and tribal families
of the Nilgiris District.
After the pilot launch of the programme, the Phase - II programme
was launched by the Chief Minister
on February 15, 2007 at Tiruvallur
district and 2,500,000 CTV sets were
procured from five suppliers during
2007 and distributed @ about 1,000
no of CTV sets per assembly constituency for 234 assembly constituencies of Tamil Nadu.
The phase - III programme was
launched by the Chief Minister on
the February 16, 2008 at Vellore
district and 3,750,000 CTV sets
were procured from ten suppliers
during 2008-09 and distributed @
about 1,450 no of CTV sets per assembly constituency for 234 assembly constituencies of Tamil Nadu.
Up to March 4, 2009, 6,304,379
units of 14 inch color television sets
were despatched to the districts.
Under phase IV, orders were
placed with fifteen suppliers for the
procurement of 4,162,500 units of
14 inch color television sets and the
12 | TV VEOPAR JOURNAL | MARCH 09 | adi-media.com | An ADI Media Publication
Elcot.indd 12
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programme is formally
launched on February 24,
2009 at Chennai. It is expected that this Phase IV
despatches will be completed by December 2009.
The selection of free CTV
beneficiaries is done by
a village level committee appointed by the
Government. The actual
distribution is done by
the Revenue department
of the respective district
administration under the
direct supervision of the
district collectors concerned. The geographical
spread of the beneficiaries is all over the state of
Tamil Nadu.
Free 14-inch CTVs being distributed in Tamil Nadu
To supervise the quality of the color televisions supplied, ELCOT has positioned its
own officers in each factory to carry out online auditing of the raw materials used and
also the quality of manufacturing process.
This is supported by a third party quality
inspection agency such as SAMEER (Government of India Electronic testing agency)
or any other agency appointed by ELCOT.
The third party inspection agency carries
out detailed analysis of the samples drawn
from the manufacturing plant and subjects
them to various tests as prescribed by the
Bureau of Indian Standards (BIS).
To supervise the quality

of the color televisions
supplied, ELCOT has
positioned its own officers
in each factory to carry
out on-line auditing of the
raw materials used and the
quality of the manufacturing
process. This is supported
by a third party quality
inspection agency.
All these quality control exercises resulted

in very high quality systems being supplied to the beneficiaries.
The rate of failure at the field level is almost negligible. ELCOT monitors the customer service cells using a toll free call centre (toll free call centre number 1800 425
4466) for attending the service calls for the
free color television sets distributed by the
government to the public. The colour television suppliers are maintaining the free
color television service centers in all taluks
of Tamil Nadu to enable the beneficiaries
to service their CTVs .
The
selection
of free CTV
beneficiaries
is done by a
village level
committee
appointed by the
Government.
This novel scheme has been very popular

all over India and the electronic industry
circle due to its extreme transparency. After floating each tender, pre-bid meeting
will be held and the representatives from
the CTV industry are participating and the
queries raised by them are attended and
solved by the technical committee members and government officials in a transparent manner. The All Party Legislators
Committee headed by the Chief Minister
supervises the tender process at every
level.
Under Phase V programme, during the
presentation of Tamil Nadu state government budget for the year 2009 - 10, it was
proposed to allot Rs. 500 crore towards the
procurement of 2,500,000 units of 14 inch
free color television sets.
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An Eco-System to
Promote Electronics
Manufacturing in
India
Rajoo Goel
Secretary General
ELCINA Electronic Industries Association of India
lectronics occupies a key position in modern science and

technology. Electronics can
impact the economy in the following
five ways:
ll Raise long term growth potential
(increased productivity, competitiveness)
ll Create employment opportunities
(both high skilled & low skilled)
ll Spread of education and literacy
ll Provide universal health services
ll Deliver e-Governance.
The government has emphasized the
need for an entire eco-system approach to creating an environment
for growing the domestic electronics opportunity. These measures are
directed at growing the domestic
manufacturing opportunity, increasing the percentage value addition in
the country and making India part of
the global value chain in electronics
manufacturing.
This approach must include a focus
on the following components:
ll Developing R&D capability and
contact between industry and
academia
ll Supply chain initiatives especially
with reference to component manufacturing
ll Encouragement to increase in value addition by manufacturers
ll Positioning India in the global value chain (encouraging EMS companies etc)
ll Flexibility in labor policy for electronics manufacturers
ll Infrastructure (supply chain, Ewaste management system, power
costs, other input costs, finance

costs, R&D costs (technology development fund) etc.
ll Testing labs infrastructure, to provide solutions rather than go/nogo; (reference to the World Bank
stress on metrology as a growth
imperative)
In addition to the above, areas which
require attention for successfully implementing the policy are to simplify
policy and procedures to encourage
fresh and incremental investments
in electronics manufacturing in the
country.
A special impetus is required in the
export-promotion area to make Indian manufactured electronic-goods
competitive globally. Efforts must be
made to build the electronics brand
for Made in India products, which
currently do not have a competitive
brand-perception in global markets.
It is imperative to follow the software model and perhaps ride on the
positive perception of the same to
create desirability in international
markets for products manufactured
in India.
The industry is the first to face the
WTO zero-tariff regime, and it is a
dual risk in the absence of any Indian
standards that may serve as controls
on e-dumping and e-waste (prevention of organizations from importing
second-rate/refurbished/pre-owned/
phased out goods). The other aspect
is that in the event of Indian goods
being blocked out of certain international markets, there may be scope
the imposition of a non-tariff barrier
from the Indian side.

The market for electronics hardware
touched USD 40 billion (Rs. 200,000
crore) in 2007-08. The domestic production was just 50 percent of the
market demand, at USD 19 billion
(Rs. 95,000 crore). There is a huge
gap in demand and supply of components. Demand is estimated at
over USD 8 billion (Rs. 40,000 crore)
against supply of USD 2.2 billion
(Rs. 11,000 crore) only. In spite of
the economic slowdown, the demand
will rise to about USD 44 billion (Rs.
220,000 crore). The gap between demand and production will continue
to rise due to lack of a conducive
business environment for manufacturing.
Some of the general problems related
to policy and high costs faced by this
industry are:
ll Inverted duties due to ITA-1 &
FTAs (eg. CPTs & set top boxes)
and dual use inputs such as plastics, copper, aluminum, etc, plaguing hardware manufacturers.
ll Domestic taxes and levies impose
fiscal disabilities
ll Cascading impact of CST on components detrimental for finished
products manufacturing
ll High cost of finance and power add
to disabilities: Overwhelming im-
Elcina.indd 16
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pact under zero duty regime

and physical - discourage capital intensive, high value add investments
ll Higher the value addition, higher the disability faced by manufacturer: high risk and
absence of level playing field is discouraging investments in manufacture of components / parts which require high and long
term investments and need a supportive
fiscal and infrastructural environment
In mobile/ wireless devices, India accounts
to around 10 percent of the total worldwide
mobile shipments. About 10 million phones
shipped every month (in year 2008 total
India shipments would cross 120 million
phones). Worldwide volumes are projected to
touch over 1.25 billion phones in year 2008.
The average selling price is around USD 80
(Rs. 4000) per phone in India and total mobile phone revenues in India are over USD
10 billion/annum (Rs. 50,000 crore).
ll Disabilitiesfiscal
The
Government
has emphasized
the need for an
entire eco-system
approach
to creating an
environment
for growing
the domestic
electronics
opportunity.
It can take a
number of steps
to help India
become a global
manufacturing
hub.
Global manufacturing scenario

ll China
has been biggest manufacturing

hub for worldwide phone requirements.
Almost all the component supply chain is
in China, giving it all the advantages.
ll Wages in China have increased significantly by about 60 percent in the last 12 to
15 months and the currency is appreciating. Overall manufacturing costs in China
increased significantly so far in this year
2008, making it not the best available option for worldwide requirements.
ll Some SE Asian countries (like Malaysia,
Vietnam etc) have taken this opportunity
(of cost increase in China) to develop and
encourage manufacturing from their countries at lower costs than that of China.
ll High import duties & taxes on imported
mobiles are helping local manufacturing
in Brazil. Their tariffs are as follows:
ll Total import duties + taxes (state and
federal) on fully made phone imports
from outside countries in to Brazil are
49 percent.
ll Total import duties + taxes (state
and federal) on locally manufactured
phones in Brazil for sale in Brazil are
12 percent.
India manufacturing scenario and

requirements from the Government
ll There
are no real incentives for local

manufacturing in India. While many gov-
ernments in the world give incentives for

local manufacturing, the same doesnt
seem to be case with Indian Government
for mobile manufacturing.
ll Import duty for mobile phones (fully manufactured outside India) is only four percent SAD; though this duty becomes zero
percent for local manufacturing; two percent CST and 1 percent NCCD take away
all the benefit received.
ll Moreover the component supply chain in
India is not developed as of now which increases the cost due to inbound logistics
(most of the components/ BOM needs to
be sourced from outside countries like
China etc).
ll Local manufacturing units (of OEMs &
EMS companies) can cater to the entire
mobile volume requirements of India and
also export significant volumes to other
countries with fully efficiency and quality at competitive prices if the Government is ready to provide incentives for
local manufacturing and discourage direct imports by increasing import duties.
Brazil seems to have succeeded with this
model.
ll Brazil could make its local manufacturing
initiative successful with 50 million unit
volumes per annum; so with 120 million
unit volumes per annum India can make
local manufacturing a bigger success and
also cater to global exports.
Some suggestions to the government

to help India become a global
manufacturing hub
The Indian government should utilize the
opportunity (high cost increase in China) to
replace China as the next global manufacturing hub. The Indian Government should
implement the below immediately:
For direct imports of fully made phones from
outside countries:
ll Continue 4 percent SAD, 1 percent
NCCD, and also add basic dutyat least
4 percent.
ll Discontinue the option of 4 percent SAD
drawback against the VAT paid.
For local manufacturing (importing components and assembling in India):
ll Remove CST & NCCD.
ll Actually ensure that all taxes and duties
are zero percent.
The Government should consider implementing this model in all the industries.
Elcina.indd 18
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Mobility, Connectivity,
and Convergence : The
New Growth Drivers
Dr RC Chopra
Senior Advisor,
Confederation of Indian Industry
he standalone products are giving way to multifunctional and

interconnected products, shaping the way we live and do business.
The convergence of communications,
computer and consumer electronics
technologies, emergence of Internet
as the global communications platform, coupled with the developments
in wireless technologies, have revolutionized the product portfolio in the
ICTE sector. The developments in
semiconductors, digitalization, and
software have redefined product functionalities and often offer solutions to
the unarticulated requirements, delighting the users - with technology
acting more in the nature of demand
push than the user pull. While on one
hand it has ushered in multi-functionality, combined with significant
advances in technology integration,
power efficiency and miniaturization,
it is accelerating the development and
proliferation of a new generation of
devices that are smaller, lighter, quieter and with longer battery life than
ever before - ushering in the era of
mobile platforms enabling access to
the content, applications, and services
anywhere and at anytime, opening up
new business opportunities.
The now ubiquitous mobile phone has
become one of the worlds great success stories. For the first time in 2002just 21 years after its introduction
- the number of mobile phones worldwide has outnumbered total fixed telephone lines. By 2006, the global number of mobile phone users reached 2.5
billion as compared to 1.4 billion fixed
lines. Worldwide mobile subscriptions
have reached about 4.0 billion - equiv-
alent to over 60 per cent of the global

population. Annually about 1.3 billion
handsets are being manufactured.
With growth in demand, coupled with
the paradigm shift in life and work
style and its impact in enhancing productivity, mobile phones have become
the focus of developers and have metamorphosed into a star convergence
product.
Mobile phone presently incorporates
functionality of voice communication,
text/video messaging, Internet connectivity, email browsing, personal
organizer, calculator, video games,
m-payments; incorporates a camera,
MP3 player, radio receiver; can function as a USB storage drive, and now a
DVB-H TV receiver. The integration of
camera has received an overwhelming
response 80 percent of the phones
have built-in cameras.
Global positioning system (GPS) technology has matured into a resource
that goes far beyond its original design
goals of navigation and asset tracking.
GPS portable navigation devices provide accurate location and integrate
many consumer features, as people use
GPS to be more productive, and make
their automotive commute safer, and
easier. With declining prices, reducing
form factors, the portable navigation
devices are transitioning to personal
navigation devices (PNDs) and their
penetration is expected to increase at
a faster pace. These are now being integrated into mobile phones. It is estimated that about 15 percent of the
mobile phones manufactured globally
have built-in PNDs.
At the recently held CES 2009 at Las
Vegas, pocket video projectors (pico-
projectors) were introduced. These

have also been integrated with mobile
phones.
The growth of the Internet has been
phenomenal. The Internet has begun
to redefine the way people communicate. The Internet has also begun to
redefine the way businesses are conducted. It provides global marketing
reach, facilitates collaborative product
design, integrates supply chain management, and enables information to
be widely shared. This increased connectivity not only allows citizens and
businesses to access various data,
voice, and video applications anywhere, anytime, but also enhance collaboration and efficiency within the
public and private sectors, and delivery of services. With the Internet,
virtual corporations have become a
reality.
At the end of year 2000, there were
360 million Internet users which increased to 1.58 billion by 2008. PCs,
which were the mainstay for net connectivity till recently, are giving way
to on-the-move Internet Access and
mobile Internet devices (MIDs).
The global PC shipments were 264
million units in the year 2007. This increased to over 300 million in 2008. By
end of 2008, the number of personal
computers in use worldwide reached
CII.indd 20
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Going by
the pace of
technology
development,
declining
price points,
better features,
growing
consumer
awareness,
and trends in
the demands of
marketplace,
mobility,
convergence, and
connectivity
will be the key
themes that
would dominate
the ICTE
landscape
over the next
decade.
one billion. During these years about 81.5

percent of PCs shipped had been desktop
computers, 16.4 percent laptops and 2.1 percent servers.
Laptops which ushered in portability in
computers were replaced by lighter and
smaller notebooks. With Internet becoming
the platform for not only information access/exchange and business application and
growing online applications, the demand
for low cost internet access device has been
growing. To service this market, a new class
of products called netbooks has been introduced. Netbooks are mobile computers, having small form factor with screens ranging
from 5 inches to 10 inches, and they carry
no optical drive. They are designed for basic
applications such as web browsing, email,
word processing etc. The user stores files on
the internet and manages them with web
based applications (cloud computing). Prices generally are between USD 200-500 (Rs.
10,000- Rs. 25,000).
Aided with fast growth in the netbook segment, in the 3rd quarter of 2008, the notebook/netbook segment exceeded desktops
for the first time. In about a year after their
introduction, netbook sales are estimated to
be more than 10 million in 2008. Almost all
global major companies are offering products
in this segment.
Netbooks have been termed as disruptive
products, competing with notebooks on one
end and smartphones on the other. The second billion of PCs, which are expected to be
put on the market by 2014, would be dominated by notebooks/netbooks.
Mobile phones are widespread ICT devices,
and are becoming the primary means of
connecting to the Internet, surpassing traditional computers. Smart phones which
support full featured email capabilities,
miniature keyboard, touchscreen, Internet
browsing, personal organizer etc. - are growing. About 10 percent of the high-end mobile
phones manufactured annually can function
as computers in their own right with certain
limitations.
With processors becoming more and more
powerful, memory becoming cheaper and
newer communication protocols increasing
the data transfer rates, it has become possible to handle bandwidth-hungry applications. The cornerstone of the e-governance
initiative, feasibility of telemedicine, distance
education, streaming video is the networks
supporting high data speeds. In addition,
the growth of online businesses/applications,

e-commerce is fueling the need for broadband
Internet connectivity. About 80 percent of all
online consumers worldwide access the Internet through a broadband connection. DSL,
cable, and fiber are the dominant access technologies. Mobile communication industry is
poised to make another big leap forward.
Streaming audio has created a radical shift
in consumption patterns from physical sales
to new forms of digital music which can be
downloaded anytime. Broadband connectivity has made video streaming a reality and
is growing at a fast rate. Presently, DVD
players, Blu-ray decks and other devices
such as roku and vudu connect to the Internet to stream video to television.For 2009,
TV manufacturers globally have announced
Internet connected televisions which will
deliver video services from various service
providers directly to TV.
Increasingly, consumers, especially the
working population, are becoming dependent upon access to information/data while
on the move. Wireless broadband access
technologies are showing a marked growth.
In addition, the prevalence of mobile Internet browsingsurfing the web on a wireless handheld device such as a cell phone or
smart phonealso continues to climb globally. Presently over 33 percent of the Internet access is on a wireless mobile device.
In India, the population of mobile products
covering mobile phones, PDAs, iPoDs, MP3
players, laptops/netbooks is presently estimated at about 400 million numbers. The
annual sale of mobile products is presently
in the range of about 120 million numbers. A
common requirement for all mobile products
is the rechargeable battery. Considering the
present volumes and future demand, there is
an urgent need to have investments in manufacture of this product in India.
Extraordinary opportunities are facing the
technology industries, and continued expansion of computing, new form factors, access
to information and data from anywhere and
on any device are opening way for innovations and solutions that were not even imaginable earlier.
Going by the pace of technology development, declining price points, better features,
growing consumer awareness and trends in
the demands of marketplace, mobility, convergence and connectivity will be the key
themes that would dominate the ICTE landscape over the next decade.
CII.indd 22
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Trends in Consumer Promotions

and Marketing
Since the consumer is
indispensable, marketing and
promotion trends have to be
altered to suit the needs and
requirements of the dynamic
market scenario
KR Kim
Vice Chairman & Chief
Executive Officer
Videocon Group
oday, the marketing spends

on promotions in the budget of
any consumer goods company
are continually on the rise. It may
be because the trends in consumer
promotions and marketing change
frequently, and therefore it becomes
essential for a company to keep pace
with these developments.
Sales promotion plays a significant
role in increasing the revenue of a
company. But before we venture
further, lets first understand the
methodologies which are initiated
by a company to increase its market
share. There are mainly two ways
of achieving this goal. The first is to
motivate the existing consumers in
order to continue using a particular product and the second is to win
over new customers into becoming
consumers of your products.
The market is flooded with differentiated, quality products, and to
establish effective marketing conditions, a company uses certain tools
to aggressively pursue its objectives.
To choose the right product for its
target audience, a company has to
outline 5 basic policies:
l A product and the product line
l Branding (sponsor, brand name)
l Packaging (size, shape, materials,
color, text, brand logo)
l Labeling (description, identification)
l Customer service (pre as well as
after sales)
These measures, along with other
factors like price formation, distribution and promotion, together create a strong visibility of the brand
amongst its consumers.
Amid the above mentioned factors,
promotion of a product plays a key
role in the long run. A very effective
way of approaching a consumer is
through advertising and sales promotion. Companies are adopting
newer methods and techniques of
promotion to ensure wide reach, increased visibility and display, by entering newer markets and spreading
its distribution network in potential
markets.
Consumer behavior helps the company to understand and decipher what
exactly its customers wish for and
want. There is plethora of marketing
activities which induce varied consumer buying behavior. Choosing and
designing a promotional campaign is
critical in determining the extent of
success the promotion would achieve.
An effective promotional campaign
strikes the right chord in consumer
buying decision and purchasing process and adds sparkle to the consumers eye. Companies participate in
exhibitions, trade fairs and organize
various events and product demos,
specially crafted to tap the potential
buyers in order to increase the brand
awareness and visibility, thus ensuring direct involvement and communication through coupons, contests,
sampling, cross promotions, bonus
back, freebies, etc., with the end consumer and thereby generating immediate sales without distorting the
brand equity.
Nowadays, companies are increasing
the frequency of social marketing and
cause related marketing program
vis--vis traditional commercial advertising. Marketers have started to
use sales promotion as a main element of their marketing strategy.
This ensures increased sales in short
and medium term, and increased
brand loyalty in long term.
Since the consumer is indispensable,
marketing and promotion trends
will and have to be altered to suit
the needs and requirements of the
dynamic market scenario. Thus,
promotions must be in sync with the
brand attitude to achieve maximum
results and ensure brand sustenance
in the long run.
The Indian CE & HA

Industry: The Road
Ahead
Moon B. Shin
Managing Director, LG Electronics India Limited
mong all sectors which have

refused to show any kind of let
down or reduction in activity,
consumer durables continues to be the
flag bearer. The sector shows considerable potential for expansion as well
aas innovation of existing products.
Among the trends which are going
to dominate in the near future, going
green and product customization rank
on the top, followed closely by smart
technology and style factor. Also the
route to prosperity passes through rural India in the near future.
While going green has been the talk
of the town for long, only now companies across the world including India,
are going green through eco-design
and eco-products, reducing outflow
of hazardous materials in production process, and recycling electronic
products taking into consideration the
global warming and sustainability in
the long run.
The Indian market is fast moving towards high-end customized products,
which are both technologically advanced and aesthetically designed to
complement the modern households.
The need right now is to continuously
innovate and come out with product
variations across categories to meet
the expectations of a varied class of
customers. Product design is a must
for creating better products for the
customers and matches their lifestyle.
Todays customer not only requires
products with better functions but
also wants that the product that complement their personality. So whether
its about an LCD TV which has special features of loud and bass sound
for music loving Indians to a washing machine with speech technology
for helping a housewife in domestic

chores, companies need to go all out
to please the new pampered, hard-toplease Indian consumer. Companies
today should focus on the issues underlying consumer behavior. Todays
multi-dimensional consumer shops
in different ways, based on a range of
considerations that trigger purchase
decisions.
The Indian market looks very promising with the new age consumers not
only looking at mobility and basic
computing features but yearning for
more technologically advanced features. To be able to preempt his needs
and match up to his expectations is a
challenge that companies need to live
up to. This could be done by launching products that are innovative and
stylish and most importantly, that fit
into consumers everyday lives. Smart
HDTV technologies with lower power
consumption, beautifully designed
wireless models that deliver stunning
picture quality will rule. The LCD TV
will see a continuous advancement
with LED backlighting and TruMotion 240 Hz technology. High growth
could be expected in network blu-ray
disc players and blu-ray based home
theater systems. Another trend to
watch out for will be network connectivity in plasma and LCD TVs, giving
consumers even more options for content delivery.
Today customers are open to experiencing new and different products
and are gradually shedding their
inhibitions. The shift in tastes and
preferences of Indian consumers from
traditional and conservative looking
product lines to more varied, modern
and liberal assortment of commodities
can be attributed to some social and

economic trends like high disposable
income, increased consumer awareness and preference for new advanced
products. With the advent of modern
homes and increased focus on decor,
more emphasis on fashion and lifestyle, the focus on aesthetics is bound
to increase. Consumers are now looking at products which are not only
functional, but have futuristic design
and sleek looks to match their personality as well. In such a scenario, it has
become imperative for companies to
take product design seriously and innovate on the same lines as sometimes
the deciding factor for a consumer to
choose one brand over the other could
be as simple as a product looks.
Last but not the least, the future of
consumer durables lies in the vast
semi-developed rural India. The Indian rural sector is something which
has been least affected by recession.
People here not only have good disposable incomes but are also yearning for
a better lifestyle. More so, with the
introduction of loan waiver to Indian
farmers and introduction of subsidy,
rural people are left with more and
more disposable income. Companies
which will be able to harness on this
sector stand a better chance to stand
the global slowdown.
LG.indd 25
3/12/09 12:52:05 PM
New Technology
to Fuel Consumer
Electronics Growth
R Zutshi
Dy. Managing Director

Samsung India Electronics Private Limited
he consumer electronics industry registered a healthy growth

in the year 2008 based on new
product and technology introduction as
well as the healthy consumption seen
for this category in semi urban markets. In terms of the overall industry, I
expect the industry would have recorded a growth of around 1012 percent
across the categories. All consumer
electronics categories by and large recorded healthy growth, with the premium categories leading the growth.
Some of the factors that contributed to
higher growths being witnessed by the
premium sector include the introduction of latest technological innovations
in the premium segment, growing design consciousness, as well as growing
affordability. A lot of manufacturers
worked on enhancing their reach in
smaller B&C class cities as well.
In terms of new technology, full HD
definitely dominated the audio video
space, whether it was LCD TVs and
plasma TVs to a greater extent or digital still cameras to a smaller extent.
Given the Indian consumers rapid
adoption of new technology and the
fact that Doordarshan is planning to
commence full HD transmission with
the Commonwealth Games, I expect
full HD LCD TVs to gain popularity
this year and going forward.
The flat TV market will continue to
dominate the Indian color television market in the year gone by. In
the year 2009, we expect the flat TV
contribution to the total CTV Market
to grow over 70 percent. Slim TV is
another category that is growing very
rapidly and I expect slim TV Volumes

to double in the year 2009.
In the year 2009, I also expect to see
the introduction of LED technology in
the Indian market. LED represents
the next generation of technology in
LCD TVs and I expect it to grow in
popularity linked with its slim form
factor, performance features and the
fact that it is even more energy efficient than LCD TVs.
Another technology that I expect to
see growing well this year will be
Blu ray. Even though Blu ray players have been available in the Indian
market for a year now, they have not
received a strong consumer response
and growth impetus on account of the
fact the Blu ray software has been
found to be wanting. However, with
the Blu ray software availability expected to grow in India this year, I see
Blu ray players gaining ground.
In terms of consumer durables, another trend that I see gaining momentum in India is the move towards
environment friendly technology
and products. As far as home appliance products are concerned, most
manufacturers are working towards
making their products more and
more energy efficient. Even prior to
the Government of India making it
mandatory for manufacturers to display the star rating on products, most
manufacturers are displaying star
rating on their products like refrigerators and air conditioners.
Even as products are becoming more
and more environment friendly, they
are also becoming more stylish. As

consumers are becoming more and
more design conscious, so are the
products mirroring this trend. In
terms of form factor, displays are
becoming flatter and sleeker. LCD
monitors, LCD TVs, and slim TVs
are gaining in consumer preference.
Similarly, devices like digital still
cameras and camcorders are becoming sleeker and more compact; wall
mountable Blu ray players, sound bar
home theatersall are here to stay.
Connectivity in devices is another
trend that is here to stay. Similarly,
in the era of digital convergence, you
have digital cameras which work as
storage devices, have MP3 players,
voice recording, and a host of other
features even as you have mobile
phones that have features ranging
from camera and video recording, to
music and movie playback to GPS
navigation, apart from the calling
function, of course.
The trends that we see in India are
no different from those being witnessed in other parts of the world.

Given the fact that the adoption of
new technology is quite rapid in India, I expect India to keep pace with,
and sometimes even lead, the global
trends in terms of technology.
Samsung.indd 26
3/10/09 8:40:05 PM
Trends in the Consumer Appliances

Industry
The dream appliances that
the industry needs to offer its
consumers is better quality,
user friendly, flexible, and yet
at the same time simple, easyto-operate appliances.
Shi Zhiyuan,
Managing Director,
Haier Appliances (India)
Private Limited
he home appliances industry

loves to keep itself abreast
with the trends and preferences of the modern day consumer.
For many years the manufacturers
of home appliances have been striving to improve the energy efficiency
of the equipment that they produce,
and to conserve resources.
The ever increasing focus and public awareness for an energy-efficient
and low-pollution future and a need
to protect the environment has led
major home appliance manufacturers, trade organization, and other
bodies to think in terms of new energy and water efficiency standards,
recommendations for new energy
star levels, and manufacturer tax
credits for the production of energy
and water efficient products.
Linking water efficiency to energy
star requirements is an important
step in helping people advance towards strong, positive advances in
water conservation. At the same
time, simpler values are being reflected in appliance design, like the
desire for fresher food, simpler and
healthier cooking methods and lower energy use. The increasing need
of healthier nutrition using methods
that retain more nutrient properties
is reflected in various appliances
like microwave ovens, dishwashers,
and most importantly refrigerators.
Refrigerators are evolving into styling exercises with many additional
uses, with features such as ice cube
makers, humidity regulators, air filters and zero-degree compartments,
dual-tech conversion of freezer into
normal refrigeration compartment
for substantially extended storage
and built-in LCD televisions and
water dispensers.
Mechanical controls have been replaced by electronic controls and
panel displays. This leads to greater
precision, multiplicity and reliability.

The intelligent control systems and
sensors fitted to home appliances enable them to be used for an even wider range of applications. The main
emphasis is on simple and ergonomically designed controls which can be
integrated to other systems to make
an intelligent home. Appliances have
certainly become very high-tech.
This is also triggered by the consumers preference for products that are
no longer static but think and react.
Sophisticated electronics continue
to make their way into the appliance world. Theres visual feedback,
automatic temperature controls,
motion sensors, LED lights, and
sensors. Apart from technology the
consumer also demands style, color
and user friendly appliances. Style is
the suddenly the new style quotient.
Manufacturers are offering more appliances that also have convenience
like the bottom mount refrigerators
where the freezer is at the bottom.
Although consumer-buying trends
largely continue in small appliances,
they are now beginning to coincide
with the buying trends seen for bigger home appliances.
It goes without saying that there is
increased demand for appliances
across segments. Moreover, this isnt
only limited to need-based buying.
Consumers broadening knowledge of
technology has changed their views of
what they want in their appliances.
More and more consumers are opting
for high-end appliances that save on
time and effort on housework. Design, style, technology are the must
haves for any appliance chosen by
the consumer.
The dream appliances that the industry needs to offer its consumers is
better quality, user friendly, flexible,
and yet at the same time simple easy
to operate appliances.
Trends in the Indian

HVAC Market
Krishan Sachdev
Director Marketing & Strategy,

Carrier Airconditioning & Refrigeration Limited
he Indian HVAC industry is vibrant and dynamic with trends

being driven by new and better technologies. Customers are becoming more sophisticated and more
aware of global standards that drive
their expectations.
ll We have seen trends in:
ll Product
ll Technology
ll Distribution, and
ll Back-end support systems
In the HVAC industry, there are two
relevant areas: energy efficiency and
non-ozone depleting refrigerants. Energy efficiency has been the foundation for promoting awareness about
products that are environmentally
sustainable and provide good pay
back value to the customer. The Bureau of Energy Efficiency (BEE) has
been promoting the star label concept
and it is expected that labeling will
be made mandatory in near future.
Customers are now conscious of labels while buying air-conditioning
products and are making informed
decisions.
Product
There have been many product-related trends in the last few years:
ll Customers are buying hi-wall splits
in place of window ACs for residential applications.
ll Consumers prefer energy-efficient
products and the emergence of
product life cost as a purchase driver as against only initial purchase
cost.
ll There is growing preference for
variable speed compressor units
or inverters, which leads to significantly lower energy consumption,
along with a smooth climate control
experience throughout the year.
Movement toward the global trend

happens to be a common factor underlying the above stated trends
emerging in Indian HVAC market.
Exposure to international products
and trends has created the demand
for similar products in the domestic
market. Consumers today have a
wide range of systems and technologies to choose from, based on specific
requirements and budgets.
Technology
In technology, the Indian AC market has leaped forward over the last
few years. There have been changes
in compressor technology where reciprocating compressors have been
replaced by rotary, scroll and screw
compressors in the residential, light
commercial and commercial air-conditioning segments. Electro-mechanical controls have been replaced by
electronic and micro-processor based
controls. Fixed speed compressorbased equipment is being challenged
by variable speed driven split systems
i.e. inverters. Other changes include
evolution of VRF (variable refrigerant
flow) technology, and the emergence
of R410a and R134a as non-ozone depleting refrigerant alternatives to the
ozone depleting HCFC refrigerants.
Distribution
Retail has emerged as the preferred
channel for individual consumers to
buy residential air conditioners. This
is again a global trend and is driven
by the need to touch and feel the product just like other home appliances.
For larger and complex installations
(even residential), sales and service
dealers or AC specialists are still the
preferred option since they bring an
advanced level of technical compe-
tence during installation as well as

for after-sales service. These sales
and service dealers are also evolving
to a more international model where
many of them are large organizations
with strong designing, execution and
service capabilities. Many of these successful organizations have partnered
exclusively with a manufacturer and
are identified with that brand.
Back-end support systems

Unlike other consumer electronics
products, air conditioners need preventive maintenance and after-sales
service similar to automobiles. Proper
installation is also a critical requirement to ensure that air conditioners
run in a trouble-free and efficient
manner for their full life. To ensure
this, organizations have taken many
initiatives in this direction.
ll Training of installers and service
personnel is seen as a key step toward enjoying the benefits of the
product for its full life.
ll Call centers where complaints can
be logged and services can be requested have become a norm rather than exception.
ll Shorter response time is critical as
customers are no longer willing to
wait for even a day for their units
to be repaired.
Carrier.indd 28
3/10/09 8:36:25 PM
Reducing Margins: A Concern

for Dealers
Bimal Malhotra
Director Marketing, Donex Industries Limited
n todays market scenario, a

major concern regarding retail
outlets, especially electronics
dealers, is that profit is reducing
day-by-day. The dealer is not able
to increase sales volumes due to
opening of more outlets in nearby
areas and expanding competition. The big brands and the lower
middle brands have reduced their

MRPs due to higher excise input to
reduce the cost of production which
does not give more than 10 percent
margin to the retailer. The prices
have gone down drastically. If the
product cost is Rs. 20,000, the margin is Rs. 1,000. A dealer has his
own natural market where the cus-
tomer comes to him and buys products from him. He cannot get more
margins. Thats why the electronics
dealers are diversifying their business from electronics retail business to other avenues like financing, stock markets, or real estate.
If the margins are not improved,
most of the traders will shift their
focus to other businesses. All the
companies should take care of dealers and distributors margins and
ensure that they make good money
and meet their ends.
Trends in the Indian

DVD Player Industry
Mohandeep Singh
Director - Sales, Philips Consumer lifestyle
VD players have added a new

dimension to home entertainment experience. A country
where the audience love to watch
their favorite movie again and again;
emerging need for recreating the cinematic experience at home; DVD disc
availability at nominal rates; rental
industry boom, coupled with the current DVD household penetration levels offer a tremendous opportunity to
this category.
In 2008, DVD players grew double
digit in unit sales and saw more
than 100 new models launches by
various players in the category. The
DVD category contribution from
town class B&C was more than 50
percent and would continue to grow
in 2009 on the back of limited entertainment avenues like multiplexes
or movie theaters. Companies will
explore newer markets and would
focus more on the reach and expansion than ever before to counter the
adversely impacted sentiments of

metro consumers during current economic scenario.
The DVD category witnessed a 10
percent price erosion in 2008, whereas in 2009, considering the price of
raw materials already at minimum
level, depreciation of rupee against
dollar, increase pressure to maintain
margins, companies may not enter
in price game and therefore the focus
would be to negate price erosion by
delivering more value added feature
pack players to the consumers.
Convenience and connectivity based
segments viz; HDMI and USB, which
contributed almost 25 percent to 30
percent of the industrys overall sales
in 2008, would continue to drive
growth for DVD category in 2009.
Newer technologies like Blu ray player may enter in Indian market by Q3/
Q4 provided the content is not a constraint in the Indian market.
While home video constitutes 3/4th

of the film industry in US, Indian
home video industry is currently
just about eight percent of the total
industry. Expected shift from theatre to home-viewing in urban areas,
growing middle class and urbanization clubbed with rural penetrations,
the home video market is expected to
grow at a healthy rate on the back
of latest technology, superior design
and innovation over the next five to
six years.
Philips&Donex.indd 29
3/10/09 8:22:42 PM
lobal and domestic economic changes have opened

up a big canvas of opportunities for manufacturers in India. This is the moment of truth. Time
is absolutely ripe for putting our industry on the right
track. The track will lead us to the popular vision of an
economic superpower in the next decade or so.
Automobile has proved it. Telecommunication is well on
the way. Consumer electronics and appliances had televisions made locally, but a large section of goods, namely
washing machines, air conditioners, microwave ovens,
were still dependant on imports from China. This is
where the entire game plan has to change.
Costs are at par with China now. Quality is certainly
better controlled. Flexibility of business is far superior.
There is every reason to revert to local sourcing. Large
players have already realized this fact and reset their
procurement plans.
The Indian market, buoyed by tremendous rise of rural
demands, is huge and still counting. We do not need to
look outwards and get cowed down by the recession all
over the world (as Chinas problem is). The fiscal measures and consumption pattern in India will continue to
provide enough fodder to the manufacturing sector.
Consumer
Electronics
and Appliances
Manufacturing
A Sunrise
Industry?
Old and prospective manufactures need to
come out of the shell of depression and join the
celebration of an unprecedented opportunity
that is knocking at our doors.
This movement of local electronics manufacturing industry is well understood and supported by the Government
and policy making bodies as well as the industry associations. There have been several talks and presentations
by the Government and the industry in the past to support this strategy. Employment generation and bigger
economic activities in backward areas have been already
tested. There is no debate necessary on this topic - only
concerted action is required to put the idea on a fast
track since todays global meltdown hugely favors this
strategy.
We also need to get our act together to meet the challenges of quality production. There are a lot of idle capacities to be tapped and still many more units may be
required. Processes, technologies and mind sets need to
be upgraded. This is an appeal to all old and prospective
manufactures to come out of the shell of depression and
join the celebration of this unprecedented opportunity
that is knocking at our doors.
D Bose
President
Noble Group of Companies
We leave the jugglery of numbers to the market research

people or the hardcore economists. But the mood is upbeat in all of us and we can do it if only we so believe.
The dragon is faltering, let the elephant rise.
iding high on the success of previous years, the

year 2008 was expected to catapult India to the
fore a nation that along with China was the cynosure of all eyes with global investors making a beeline
to partake in the growth story - India Shining! India Incredible! These were the buzzwords.
But alas! How things have unfolded since then! Indeed
a rude awakening for the entire world. Down went the
global economy severely denting us too in the process.
We could not escape unscathed. The ongoing crisis has
impacted Indian economy in a manner few could have
predicted. The crisis whose genesis lay in the housing
sub prime of the US snowballed into a financial holocaust
which spared none, neither the developed economies nor
the emerging ones. The impact of this downturn is being
felt both by the world trade channel and financial channel. Trade because when an economy falls into recession,
it impacts trading partners as well. Recession implies
less demand for overall products and services and leads to
lower investments and corporate spends. And this would
consequently affect the incomes of the export partners
and consumption level of the importing partners. On the
financial side, the crisis leads to a substantial change
in the financial markets. The biggest pointers would be
decline in the capital market indices, depreciation of the
domestic currency and the non-performing assets in the
credit markets. We see all of it happening not only here
but worldwide. The global impact of the downturn comes
as no surprise as financial linkages stretch across country boundaries and the exposure has been increasing
substantially over the years with high leverage derived
from many of the complex derivative instruments, a resultant of the financial ingenuity and market sophistication. The markets have become more integrated not only
in terms of volumes but also in terms of movements of
financial assets with banks being at the centre of such
financial international trade. And this truly poses the
biggest challenge for policy makers today.
Arguably, there is an urgent need to bring in radical reforms and lift restrictions that hinder business activity
The gloomy backdrop provides a

unique opportunity to drive never-before
cost efficiencies, launch new products,
and build enduring customer loyalties.
Successful organizations would adopt
a cross functional approach to identify
and action initiatives to crunch costs
ecross all elements of the end-to-end
supply chain.
Global Downturn
An Opportunity
in a Calamity!
A downturn provides an ideal opportunity to
look at things in a radically different manner
using a different set of lenses.
in the country. But that alone is not going to help. What
we need is not one, two or three but a series of steps to
be taken which will create demand, propel growth and
restore confidence in the financial system.
Having said the above, let me also admit that while the
developed economies of the West are reeling under this
prolonged recession, we in India are relatively less impacted and therefore, likely to bounce back faster than
the rest. While sectors like real estate, infrastructure,
and consumer durables have seen a slowdown, telecom
services, health, pharmaceutical sector, and FMCG are
not as much impacted. However, everyone is grappling
and the question uppermost in everyones mind is how
we navigate our way through this turbulence. With a
high degree of volatility in commodity markets, severe
crunch in the credit market and hugely fluctuating currency rates, the biggest challenge to producers and marketers is how to plan and strategize in such uncertain
times.
The gloomy backdrop as painted above has its bright
side as well. It provides for a unique opportunity to drive
(a) never-before cost efficiencies, (b) launch new disruptive products and (c) build enduring customer loyalties.
If you look at the history, the highly successful organizations were shaped through the most difficult times. A
recessionary period offers the most ideal opportunities
for the organization to do different things differently.
There are a few core themes on which one needs to work
during a deep downturn. Some of this may appear fundamental but nevertheless they are pivotal.
tactical and short sighted. Unless and until one makes

cost management a key organizational value, it will
never get institutionalized. Cost focus has to go beyond
the obvious and one should look at not only low at hanging, quick wins but take a harder look at the operational
and structural issues. Look at newer ways to boost productivity and cut waste. Successful organizations would
adopt a cross functional approach to identify and action
initiatives to crunch costs across all elements of the end
to end supply chain. And a big chunk of costs resides in
your working capital block, inherent in the system and
that is a great opportunity to optimize on. Being lean
mean agile should be the new credo.
Leveraging People
George Menezes
Chief Operating Officer,
Godrej & Boyce Mfg. Co. Ltd.
Appliance Division
Driving revenue and enhancing margins
Driving revenue and enhancing margins is central to the
business model of any organization and the recessionary
period is a compelling time to take a hard look at these
issues, viz. a close assessment of the assets of the business reveals that the 70-30 rule is so much applicable
here too, 30 percent of the assets would contribute to 70
percent of the value. So what is the rest? Is it flab that
needs to be trimmed, wastes that need to be eliminated?
A reassessment of the value being generated by these assets - products, processes and people is absolutely mandatory. And what needs to be shed should be divested as
it makes no financial sense going forward.
Simultaneously, we need to look at opportunities of entering high margin categories which are less sensitive to
price fluctuations. Successful marketers will strategically price products introducing new variants at high price
points to derive an overall higher value while also taking
bold decisions to phase out less value adding products.
Similar to the product rationalization, channel optimization would be critical to deriving a higher price value. So
the distribution strategy should look at not only the dimension of reach but also price extraction. And lastly, we
need to explore all possible opportunities for cross selling
to existing customers.
Focus on cost like never before

Talk of cost cutting in an organization you will find this
activity sporadic, as and when, and to put it harshly, very
Compelling times call for compelling measures. A severe

downturn warrants redefining goals and priorities and
realigning people and teams to implement the shift. We
have to relook at our performance management systems
to create both opportunities and challenges for the team
members and revamp our remunerations, and rewards
to drive behavior. There are many organizations which
also use such times to restructure the organization by
de-layering and enhancing the span of controls to allow
for job enrichment, enhanced responsibilities and quicker decision making.
Connecting with Consumers

A downturn is the most opportune time to strengthen
relationships with consumers. We have to travel the
journey from engagement to attachment to bonding and
we have to do this very rapidly. The reason being in a
downturn when the consumer sentiment is at its lowest
ebb, it is the right time to get close to your customers
and connect with them at a deeper level. That is what
will differentiate you from the rest. As in a personal relationship when one is going through an emotional or financial upheaval, it is ones near and dear ones, kith and
kin, soul mates who help tide over those trying times.
Same is as much applicable to customers. Remember
that when the country and the global world are going
through the financial upheaval, your customers are as
much worried as you are. Stay close to them at all times.
Talk to them continuously, bring excitement in their
lives through your products and services and bond with
them like nobody does. They will be then there with you
through your life time!
In conclusion, a downturn, a depression, a recession is
not bad in itself. It provides an ideal opportunity to look
at things in a radically different manner using a different set of lenses, identifying and seizing new business opportunities, driving revenue to derive higher value, spotting, identifying and eliminating inherent operational
and structural inefficiencies and bonding with customers
as never before, and above all, galvanizing a team into
action to brace up for the challenging times ahead!
Consumer Electronics Industry:

Poised For Convergence
Consumers are now
demanding more and more
converged services including
digital TV, high-speed
Internet, video-on-demand,
VoIP and a host of other
applications
onvergence is rapidly shaping the way we live our

lives. We are getting dependant on convergent devices
for many daily tasks be it making
calls, sharing pictures, maintaining meeting schedules, listen to
music, play games, browse the Internet, check emails etc.
Convergence means the coming together of entertainment, telephony
and Internet (triple play) in one
medium. Nowadays these there
are further bundled with wireless
technologies, also called The Fantastic Four or Grand Slam.
Consumers are now demanding
more and more converged services
including digital TV, high-speed
Internet, video-on-demand, VoIP
and a host of other applications.
IPTV is the buzzword waiting to
mould our television experience in
the near future. In simple terms,
IPTV delivers audio and video over
an Internet connection. The consumer can watch TV on a computer
screen, a television set (using an
IPTV set top box) or a mobile device like a cell phone. IPTV is often
provided in conjunction with videoon-demand and may be bundled
with Internet services such as Web
access and VoIP.
Mohit Verma
Director
Beltek India Limited
The viewers experience can be

further enriched by features such
as search for content by title or actors name, or a picture-in-picture
functionality that allows them to
channel surf without leaving the
program theyre watching. Viewers
may be able to look up a players
statistics while watching a sports
game, or control the camera angle. They can also watch uninterrupted movies with functions like
play/pause, forward, rewind and

record.
Many of the latest DVD players are
incorporating existing computer
technologies for broadening the
entertainment experience beyond
just video and watching movies.
Firewire or IEEE 1394 is making
it possible to connect and share information between devices working
with large data, for example, camcorders, DVD players and digital
audio equipment.
Some of the latest digital photoframes with TFT LCD displays
also have additional features like
alarm clock with snooze function,
indoor temperature monitor, and
calendar. Many new digital cameras are now Wi-Fi enabled, allowing users to upload pictures directly to the Web. The new generation
of LCD TVs have USB connectivity
to connect devices like MP3 players, cameras, memory sticks etc to
play various mediamusic, video
and imagesthrough the TV, in addition to content sharing between
various TV sets in the house.
Gaming consoles like to Nintendo
WII, in addition to gaming function, also provide Internet connectivity, social networking engine
and iTunes connectivity enabling
the user to share music and pictures between peers.
It would not be long before the LCD/
Plasma TVs have a built-in hard
drive, fully-functional computer
(with both onscreen and wireless
keyboards) with built-in modem,
webcam, MP3 player, fully-functional phone with the TV remote-control
working as phones handset, builtin FM radio, slots for printer attachment, wireless gaming facilities.
Trends in the Indian CTV Market

CTV prices more or less
remained constant and rise
in input costs was marginally
compensated by the initiative
taken by the government in
reducing excise duty
he color television market for

the year 200809 will show a
modest growth of over 3-4 percent over last year and is expected to
be around 16 million units against
15 million units over corresponding
period last year. India, in fact, is the
only country which is still clocking
growth despite lower sales world
wide.
21-inch pure flat continues to be
the largest selling segment with
over 55 percent market share. The
Indian market also saw the introduction of slim CTVs and their
share is now gradually increasing.
In the coming months, ultra slim
is likely to be 20 percent of the total market. 14 inch continues to
be strong at over 20 percent of the
total market. Sales in the 15 inch
segment are not at expected level
and continue to hover between 5-7
percent. Large screen size shares
remain more or less at a level of
7-8 percent, maybe owing to competition from low/mid-end LCD
TVs.
LCD TV market during the year
would be around 1 million, a mere
fraction of the total CTV market
in India. Given the income levels
and household profiles in India, it
will be many years before LCD TV
would make real dent in the CTV
market. At least for the next 2-3
years, it is going to remain a niche
product.
Deepak Dayal
General Manager Marketing
& Customer Services
JCT Electronics Limited
LG and Videocon Group continue

to dominate the market with over
45 percent market share between
them, followed by Samsung and
Onida. Other international brands
like Philips, Panasonic, TCL, Haier
have not been able to make much
dent and continue to operate with
smaller volumes. Surprisingly, the
regional segment has bounced back
with over 25 percent share of the to-
tal market.
Major CTV manufacturers like Videocon, LG and Samsung are going all
out to woo customers with newer and
larger models of LCD, but sales are
below expectations.
CTV prices more or less remained
constant and rise in input costs was
marginally compensated by the initiative taken by the government in
reducing excise duty. LCD prices did
fall marginally, though not in line
with international trends.
Now that the dollar is appreciating, it is having a cascading effect
on the cost of raw materials along
with high increase in the energy
cost. This has led to increased costs
of the product and may witness a
marginal increase in the price of
CRTs and CTVs.
The year 2009 is going to be a tough
year with world recession, slowdown
of Chinese economy, and fears of
slow down in the Indian market. Key
to sales would be rural penetration,
production at peak efficiencies and
rationalizing costs. Indian outlook
for 2009 remains positive despite
worldwide recession and slowdown
in India. The market is not expected to decline but is likely to grow
around 5 percent and in the worst
case scenario to remain at the same
level. Growth is to come from Class
B and C towns and rural markets. In
fact, the last few months have seen a
revival in basic sizes such as 14 inch
and 20 inch.
All said and done, India, with its
huge population and households
of over 175 million, still has a vast
potential for color televisions. The
challenge is to provide a robust set
with good service back up with contemporary technology at affordable
prices.
Trends in the Indian AC market

Consumers nowadays
are becoming extremely
environment conscious and
look for products that adhere
to global eco-standards and
save energy
Sabiha Kidwai
General Manager - Marketing
Panasonic India
ith summers approaching,

the demand for air conditioners is increasing by
leaps and bounds. Global manufacturers are increasingly seeking foothold in the growing domestic Indian
market and homegrown manufacturers are also expanding rapidly. The
competition that is already fierce
is bound to intensify in the coming
years. All white goods giants are vying to achieve the maximum market
share in the AC segment by rolling
out new models featuring the latest
technology. These companies are not
only launching new models but are
also upgrading their existing ones.
With so many products available
in the market, the consumers have
a wide range to choose from, both
in terms of unique features as well
as prices that range from anything
between Rs 15,000 and Rs 1 lakh.
Consumers in India are demanding
more in air conditioners; nowadays,
they require more benefits like lesser power consumption and price effectiveness.
Over the years, we have seen the
consumer preference for air conditioners shift from window air-conditioners to split air-conditioners. One
of the primary reasons for this is very
less difference in the prices of both
with split air conditioners including
features like digital temperature remote control, auto restart, slide-in
slide-out chassis, and anti corrosion
body. The maximum demand for
split air conditioners comes in from
Southern India. Experts attribute
this growth to the fact that houses in
the southern region, on an average,
are larger in size and require high
capacity air-conditioners. Moreover,
the extreme temperatures, especially in summer, call for high capacity
air conditioners and refrigerators,
thereby pepping up the demand.
The room AC industry has experienced one of the highest growth
rates since 1997. While the industry

grew by around 20 percent (CAGR),
the split AC segment grew by around
30 percent (CAGR). Only in 2008 we
see an exception. Although 2008
has been generally dampening for
the entire economy and especially
so for the realty and IT sectors, the
AC industry has been able to hold its
ground and has not experienced any
de-growth.
The split AC market has been enjoying a very high growth rate (CAGR
30 percent) and a plethora of brands
are available in the market. Pen-
Penetration of ACs in
India is abysmally low
and there is always room
for additional products.
Especially if such products
are of good quality.
etration of ACs in India is abysmally
low and there is always room for
additional products. Especially so if
such products are of good quality,
enhance self-image/esteem, and are
affordable at reasonable and affordable prices. Consumers nowadays
are becoming extremely environment conscious and look for products
that adhere to global eco-standards
and save energy. They are also
aware that replacing older sets with
new stop several hundreds of pounds
of carbon dioxide being released into
the atmosphere each summer season
as well as save a lot of energy.
Although 2009 may not spell a great
forecast growth wise for the overall
economy, we still expect the summer
season to provide a fillip to the AC
industry and grow between 5 percent and 10 percent over 2008.
DTH: The Road Ahead

Tony DSilva
Chief Operating Officer

Sun Direct
hough home entertainment

viewing has come a long way
since the early 1990s where the
advent of satellite television opened
up wider content choices, last mile
connectivity has always been a major
road block in content delivery.
With over 110 million television
homes, India is the third largest TV
market in the world but cable TV covers about only 61 million homes which
means that over 40 percent of the current market depends on terrestrial antennas for entertainment. In mature
urban markets, single TV households
are giving way to multiple television
sets which means entertainment is
getting more personalised.
Beginning with 2-4 hours of programming on Doordarshan in the early
1980s, today we have moved to 24
hours of non-stop entertainment with
the advent of satellite television, and
yes the confusion today is what to
watch and what not to watch.
The DTH service has opened up a new
way of looking at the mass entertainment market in India. It is bound to
create a paradigm shift in how electronic media is consumed. In fact this
is one service which will make the
idiot box look a lot smarter. DTH by
its very definition (direct to home) is
at an advantage to change the terms
of viewing arrangements. At a service level it will help mitigate the last
mile connectivity issue, at a technology level there will be a big shift in the
quality of entertainment, as a content
aggregator there will be ample choice
to choose from and at a price level the
pay for what you view will turn out to
be the killer idea in propelling market
penetration of the services.
The DTH service becomes a win-win
for all stake holders. The set top box
can become an intelligent tool and
will be able to collect data and analyse

individual content preference. In the
coming years this will lead us to deliver customised content to individual
subscribers; which means the possibility of mass customisation of content.
The customer will be able to exercise
greater content choice and control on
what he wants to watch and at what
price and when he wants to watch it.
The challenge here is to gear up to
customer expectation; demystify the
technology and services to increase
the service proliferation. DTH services have grown a new set of ecosystem partners at various levels;
it calls for expertise in areas like
call-centre operation, dish installation, post-sales servicing, equipment
distribution, manpower training, recharge services, and more. Like any
other industry the three As (availability, affordability and acceptability) will play a crucial role to take
the DTH services places.
Tackling availability means stringing together a robust supply chain
management, logistics and distribution system. Making available set-top
boxes, connecting cables, dish and the
other accessories on time every time.
But then if this is simple enough, the
difficult part is in post-sales installation and servicing a large geographical
area.
Affordability means we need to address the basic service buy-in price
tag; world over the set top box and
dish antenna are given free of cost (the
practice is catching up fast in India),
content customization means bundling the top 15-20 channels of choice
at a base price; now service providers
also have a-la-carte and stand alone
packages and lesser lock-in time (a
customer can buy a sports channel for
1 month and discontinue it, say after
the cricket season is over). This helps

in faster trials at lower cost levels.
Another aspect to affordability comes
in the form of renewal of services. Today options like renewal through mobile phone, SMS, online and through
re-charge cards have come out as
strong supports to offer different levels of service continuation options.
Acceptability needs to be handled at
two levels; at a base level the quality
of service comes in to play; from picture quality (can the picture be seen
in cloudy atmosphere) to content
choice (does a viewer get his/her favourite channels at his/her cost) and
the reputation of the service provider
are key deciding factors.
While in mature urban markets the
technological points like MPEG4,
HDTV quality pictures, record and
watch later will play a vital role in
growing the market, in semi-urban
markets local content customisation plays a crucial role. A customer
is not just buys the DTH service, he
also buys the content. Being more
sensitive to customer needs and giving them high quality entertainment
at an affordable cost will be a major
deciding factor in the DTH market in
the coming days.
Sun Direct.indd 39
3/10/09 8:43:33 PM
n the last few years, the sale of audio systems

and audio equipment has taken a severe beating due to very low demand. The advent of DVD
players with home theater systems has caused a dip
in the demand for portable audio systems and mono
compo HiFi systems. Only a fraction of units are being sold by most of the leading brands as compared
to the sales figures accounted 8-10 years back by
them.
Audio systems primarily are categorized in three
segments:
llSmall, handy portable systems (two-in-ones and
three-in-ones)
llMini compo HiFi systems;
llHigh-end music systems
The first and second segments have witnessed a

negative growth but sales in the third segment are
steadily and continuously growing due to availability of high quality world class brands in India now.
Vijay Sharma
President - Sales & Marketing

SNR Electronics Limited
Trends in the
Indian Audio
Market
We are witnessing a good demand for
international audio brands in India and
hopefully most of the big towns will
have exclusive audio systems outlets of
these brands.
In the recent past, the Indian economy has witnessed

an unprecedented surge in GDP which has resulted
in creation of a very large pool of middle income
group customers. The dramatic lifestyle changes at
the upper level of the society have created demand
for a good music system and therefore, the segment
is growing.
The ever increasing network of FM radio with crispy
and very interesting programs aired by new generation RJs has lured millions of potential audio systems buyers to FM radio.
The need to have an audio system is not felt due to
FM radios availability in mobile phones, car stereos,
and compact and cheap FM radio handsets.
FM radio has eclipsed the demand for audio systems
in urban and semi-urban markets and is soon going
to effect rural markets also. This trend will continue
for the next 23 years but there is a silver lining seen
by many trade pundits in the steady and continuous growth of high-end audio systems created by the
demand from affluent and discerning customers. Demand for good quality audio systems is increasing as
it also serves as status symbol for the buyer. More
and more customers will come under this category in
the near future.
We are witnessing a good demand for international audio brands in India and hopefully most of the big towns
will have exclusive audio systems outlets of these
brands. It is very disheartening to mention here that
we do not have any Indian audio brand which can compete with the multinational brands.
SNR Electronics.indd 40
3/10/09 8:12:15 PM
Trends in Consumer Promotions and

Marketing
Exchange offer has emerged
as one of the promotional
schemes in recent times
s a result of advertising clutter, a trend is being witnessed

wherein an increasing number of marketing people have started
to use consumer sales promotion as
a main element of their marketing
strategy. There are basically two
objectives of these sales promotion
activities:
l Increase salesshort and medium
term
l Increase brand loyaltylong term
In todays scenario, the type of sales

promotion activity is one of the most
important criteria for consumers to
buy a new brand for the first time.
Although consumers now act less
and less impulsively, certain sales
promotion techniques will help
new brands to achieve higher rates
of brand trial. Consumers prefer
the following types of promotions
for new products: free samples,
coupons,
displays/point-of-purchase (POP) material, and on-pack
promotions.
On a broader note, two kinds of promotions are being observed price
versus non-price nature. In price
promotions, cost of the goods or
service is temporarily reduced, such
as coupons (offers a certificate that
provides a price reduction at point
of purchase), price off (offers a discount to the normal selling price
of a product), and refunds/rebates
(offers cash back from the manufacturer on a purchase).
A N Sehgal
Director Consumer
Electronics Division
Super Cassettes Industries
Limited
In non-price promotions, some value

is temporarily added to the product
at full price, such as extra product
(offers an increased quantity of the
product without an increase in normal retail price giveaways or contests), premium (offers a free gift
in addition to the main purchase),

contest (provides a chance to win
a large prize through skill), and
sweepstake (provides a chance to
win a large prize based on chance).
The most popular promotion among
all is the free gift promotion, which
constitutes more than half of the
total number of promotions. This
promotion is popular across a large
number of product categories. It offers the consumer an incentive to
purchase in the form of a free product/service. Often, the product offered free is a complement to the
original purchase.
Within durables, the most frequently
promoted product categories are color televisions and DTH services. The
most frequently promoted categories
in the services sector are tour and
travel, and cellular phone service.
One of the promotions that have
emerged recently in the consumer
durable category is the exchange offer. This promotion requires the consumer to exchange an old product for
a new one and get some benefit, usually a price reduction. The purpose of
the exchange scheme is to upgrade
existing users of durable products to
newer and larger sized models of a
product.
Apart from above, a new kind of
promotional activity is also being
currently used aggressively by different marketers, wherein two or
more products of the same company are used. Here a customer is encouraged to buy a primary product
of that company against offering
some secondary product as a freebie. This is also happening between
two different companies as a joint
promotion.
Market and Technological Trends in

LCD TVs
The trend is towards thinner
units for use in living rooms,
and consumer interest is also
growing in the new audio/
visual experiences made
possible by products such
as home theater and wallmountable monitors.
Rambo Zhang
Head-Marketing,
TCL India Holdings
Private Limited
he market of flat panel display is experiencing rapid

growth with the advancement
of digital technologies in media,
broadcast and communication. LCD
panels have created a new lifestyle
as consumers are becoming more
aware of the benefits they deliver,
viz. low power consumption, thin
profile and light weight as well as
improvements in image quality, size
and resolution. Increasing supply
resulting in more attractive pricing
has also boosted their popularity.
We are witnessing a new era where
digital video is delivered via a multitude of channels, as witnessed by the
start of digital broadcasting, increasing adoption of broadband technologies, and growing market permeation of DVDs and digital cameras.
LCD TVs are gaining popularity due
to the unique benefits provided by
LCD technology, including thin profile, light weight, compact size, and
low power consumption.
Developments are underway in
Indian digital broadcasting infrastructure with steady progress being made in the move to digitalize
content. Rapid adoption of digital
technology is predicted in the coming years. Results suggest a dramatic market expansion driven by
the combination of a rapid fall in
product pricing with increasingly
large product line as the move to
big-screen and wide-format models
in particular gathers momentum.
Significant investments in manufacturing facilities by Chinese, Korean
and Japanese LCD panel producers
are expected to result in a dramatically more robust supply capacity,
which should in turn contribute to a
market expansion as favorable supply conditions permit domestic television manufacturers to intensify
their participation in the segment.
Growth in television applications being driven by the adoption of broadband communications technology,
the significance of the low power consumption and long service lifetimes
offered by LCD TVs is growing. Easeof-use is also becoming a key consideration as the consumer demands
products that are simple to set up
and move.
The trend is towards thinner units
for use in living rooms, and consumer interest is also growing in the new
audio/visual experiences made possible by products such as home theater
and wall-mountable monitors. At
the same time there has been a significant acceleration in the adoption
of home networking technologies.
Growth is expected in the popularity
of lifestyles characterized by the enjoyment of digital imagery and music
over networks and by the integration
of A/V components and IT hardware
using USB, memory cards, wireless
A/V transmissions, and broadband
communications.
If the recurrent themes and trends
are any indication of where the industry is headed then the manufacturers
expect us to start using our TVs as
media access hubs. With developments like 240Hz frame rate, fascinating aesthetics with vibrant color
schemes, WiFi connectivity, IPTV
content access, wireless HD connection etc, the day is not far when we
will have two-piece TVs, where the
TV might consist of a hyper-thin display panel wirelessly connected to an
outboard tuner-I/O-video processor
box. And just when one thought high
definition couldnt get much higher,
manufacturers are beginning to show
proof-of-concept technology demos
and even prototype products geared
towards up-scaling HD content to
even higher, 3840 x 2160 resolution
levels. Interesting, isnt it.
Trends in the Indian AC market

As we move into the future,
product innovation takes
center stage, giving much
needed momentum to the
industry and opening up new
vistas of opportunities
Pradeep Bakshi
Vice President Operations
Voltas Limited
he air conditioning space

witnessed a rather turbulent
2008 and is raring to move
into a resilient 2009. While the
industry witnessed a growth of 13
percent this calendar year despite
the looming inflationary trends,
expensive money, limited finance
options, deficit rainfall, and the
general slowdown in the economy,
it has undoubtedly been a phase of
immense learning during the tide
for the air-conditioning segment,
which holds a volume share of approximately 13 percent in the key
consumer durables category.
While the future boomerangs multiple challenges at the industry in
terms of consumer apprehension
and macro economic uncertainty,
respite can be sought in the positive
per capita income growth this year,
which stood at 5.6 percent despite
the odds signifying general economic betterment.
As we move into the future, product innovation takes center stage
giving much needed momentum
to the industry and opening up
new vistas of opportunities. With
a clear focus on the first-time consumer in non-metros and a maturing audience upgrading to technologically advanced energy efficient
models, prospects can be seen in
the semi-urban landscape. Besides
the shrinking replacement market,
which we believe will help the industry position itself well in the urban landscape, there are opportunities like declining retail interest
rates, higher liquidity, and a young
working population willing to move
into new homes and upgrade.
In the coming season, we can be
positive the industry will be witness to action in the entry level segment with introduction of appropriately priced energy efficient models
which we are confident will continue to be well accepted by consumers
whose sentiments are linked to the
economy that looks bullish going
forward.
With improvement in spending in
social infrastructure, coupled with
raised living standards, which have
given rise to numerous catchments
and societies, the industry will
have to respond to a robust market and this market is significantly
influenced by a concern for energy
and the environment. Investments
in brand-building echoing product
functionality and aesthetics with a
long run payoff besides preparedness in terms of large working capital requirements are factors that
need focus.
The rate of change in our industry
will be exponential. Some changes
will be caused by improvements
in technology whereas others will
be the result of influences outside
our immediate control. As industry
players, we have an obligation to be
proactive in encouraging changes
that are of benefit to the society we
serve. This in turn will have direct
benefit to our industry and to each
of us individually.
To reiterate, emphasizing on the
rural analogous markets, which
are relatively decoupled from the
economic downturn and growing
faster than the urban markets pose
significant opportunities. Rising income levels, double-income families,
and increasing consumer awareness
have been the chief growth drivers
of the industry and will continue
to be so in the future, albeit with a
shade of somberness.
Emerging triumphant in the longterm will require firms to develop
a wide and robust distribution network, differentiate their products in
areas of relevance to the consumer
and innovate in the areas of promotion, product financing, etc. I am
cautiously optimistic that despite a
gloom, the industry is waiting with
a bated breath to take advantage of
the turnaround in the ensuing season and keep the excitement alive
with a host of new launches.
Product Innovations in Mass Categories

For innovation to succeed,
it must be rooted in consumer
understanding
Shantanu Das Gupta

Vice President Corporate
Affairs & Strategy - Asia South,
Whirlpool of India Limited
he opening up of the Indian

economy in 1991 had an immense impact on innovation on
most industries, and this is true for
the home appliance industry in India.
Prior to liberalization, the industry
comprised of a handful of local brands,
access to technology was expensive
and limited, and focus was skewed
towards basic functionality. Post liberalization, a number of international
brands entered the industry. While existing brands had to remain relevant
in the context of increased consumer
choice, new aspirants had to create
an identity for their brand to compete
against well established brands. Innovation thus acquired an enhanced dimension in the new paradigm, as the
need to differentiate product offerings
became imperative.
While there are a number of definitions, innovation is when a product or
feature is an industry first, when such
a feature or product is protectable by
law, or even when there is a novel solution or way to do something that exists. For innovation to succeed, it must
be rooted in consumer understanding.
Successful brands are those that innovate across the consumer pyramid in
which they operate and whose innovations enhance the value proposition of
the offering. Consumers will not value
a product or feature innovation unless it is relevant and provides value
to them. The value that is attached to
an innovative product is reflected in
the price that it can command, which
is usually at a premium to the average price of products in the segment,
and the share that it gains. It is not a
successful innovation when it is priced
so high that it becomes unaffordable
for the consumers it is meant to serve,
thereby limiting volume. There are
some myths about innovation. Here
are a few that are especially true for
mass categories.
The first myth is that innovation is
not important for mass categories as
most are first time users and are looking only for the basics. The second is
that innovation adds cost and therefore cannot be done in price sensitive,
mass categories. Both these are fallacies. By definition, mass categories are
low in price; hence innovation must be
affordable, keeping the end consumer
price in mind. This necessitates defining limits on any cost element that
could have an adverse impact on the
final consumer price. This has to be
done at the very start of the project
and would include capital expenditure, bill of materials, etc., which must
be rigorously monitored through the
duration of the project. Many consumers of mass categories especially in
India are indeed first time buyers,
and hence without any usage experience. Thus it becomes necessary to
understand the non-owner habits and
behavior as well as their expectations
to be able to attract and delight them.
One such example is the non-refrigerated utility drawer in entry level and
mid-capacity refrigerators for storing
onions and potatoes. Users at this segment tend to be challenged for space
and value anything that helps them
manage space.
The third myth is that innovation has
to be large scale and technical. For
something to be seen as innovative, it
is not necessary that it be a huge leap
in technology. Indeed, many small innovations are equally or more valued,
particularly if they are drawn from
consumer insights and are relevant to
the end user. There are several such
across many mass categories, such as
heater in top-load washing machines,
fully automatic refrigerator which is
also in the mass end of frost free refrigerators.
There are several more examples of
innovation for masses. Most successful marketers would not hesitate to
acknowledge that it is consumers who
provide the clues to innovation. Therefore, consumer understanding lies at
the heart of innovation and it is those
companies that refine this understanding and translate them into meaningful benefits that will come out on top.
Recession : The Buzzword

Sunil Sethi
Sr. Vice President Sales & Marketing, Weston
RECESSION
RRejection
EEmptiness
CCold feet
EEndangered
SSidelined
SSubdued
IInterrupted
OOmitted
NNobody
Lay offs, salary cuts, dollar fluctuation name it, and its all happening.
Yes it is true, we are living in an age
where we are sleeping, breathing,
talking, reading and living 24x7 with
recession. And why not, after all what
is good or bad for America is applicable to the world. We have religiously copied them, be it the way they
dress (6 meter saris you can have
six tops), what we eat (paranthas to
burgers), how we eat (hands to knife
and fork), what time we eat (8.00 pm
or 11.00 pm), joint families to nuclear
families, or from arranged marriages
to live-in arrangement. Yes, America
has sneezed and like the rest of the
world we have also got a cold. The
weakening of the American economy
is bad not only for India but for the
entire world. But have we asked ourselves why we did not do extra-ordinarily well when America did? The
US economy has faced 10 recessions
We should
go back to
basics in times
of recession,
including
focusing on
weak links,
managing time
effectively,
and focusing on
detailing
since the Second World War, and each time

they have come out of it
investment into infrastructure, lowering of

interest rates etc.
What has happened is it normal or a bolt

out of the blue? Did we expect the Sensex to
go beyond 20,000 (or stick there) to 30,000
to 40,000, GDP growth for the next five
years would be 8 percent plus. Salary hikes
will be in the same percentage, quarter after quarter, the turnover will multiply and
the profits will keep on increasing by leaps
and bounds.
What we can do in such times is to look back

on basics:
No, it is not possible, although it is good to

defy logic. Look, even God has created different weathers to even out. During school
days the result for each term would not be
the same. Sachin Tendulkar does not score
century every time he goes to bat, and all
films of Shah Rukh Khan are not hits. But
yes we cannot run away from reality, how/
where it started US home loan defaults
landing banks into trouble (bad rating of
credit worthiness), social security? At the
same time what happened was that the
price of oil rose to more than USD 100 per
barrel.
The Government would be there creating a
better atmosphere by initiating duty cuts,
Weston.indd 48
on weak links. Recall refreshing for

exam, the subject you were weak in/the
amount of time you devoted extra to get
better marks in the subject.
ll Better time management: The extra time
you devoted dressing up when going for
the party you would love to spend time
in.
ll Get into detailing: The sensitive way you
handle your newborn.
ll Focus
So, we should look at recession as:

R-
E-
C-
E-
S-
S-
I-
O-
N-
Reinvent
Electrify
Combat
Empower
Stimulate
Simplify
Initiate
Originate
Nail it.
3/12/09 5:18:53 PM

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The novel scheme

12 | TV VEOPAR JOURNAL | MARCH 09 | adi-media.com | An ADI Media Publication

Free 14-inch CTVs being distributed in Tamil Nadu

To supervise the quality

All these quality control exercises resulted

This novel scheme has been very popular

An ADI Media Publication | adi-media.com | MARCH 09 | TV VEOPAR JOURNAL | 15

lectronics occupies a key position in modern science and

costs, other input costs, finance

from the Indian side.

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pact under zero duty regime

Global manufacturing scenario

has been biggest manufacturing

India manufacturing scenario and

are no real incentives for local

ernments in the world give incentives for

Some suggestions to the government

18 | TV VEOPAR JOURNAL | MARCH 09 | adi-media.com | An ADI Media Publication

he standalone products are giving way to multifunctional and

alent to over 60 per cent of the global

projectors) were introduced. These

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one billion. During these years about 81.5

the growth of online businesses/applications,

22 | TV VEOPAR JOURNAL | MARCH 09 | adi-media.com | An ADI Media Publication

Trends in Consumer Promotions

oday, the marketing spends

24 | TV VEOPAR JOURNAL | MARCH 09 | adi-media.com | An ADI Media Publication

The Indian CE & HA

Managing Director, LG Electronics India Limited

mong all sectors which have

for helping a housewife in domestic

can be attributed to some social and

An ADI Media Publication | adi-media.com | MARCH 09 | TV VEOPAR JOURNAL | 25

Dy. Managing Director

he consumer electronics industry registered a healthy growth

rapidly and I expect slim TV Volumes

are also becoming more stylish. As

The trends that we see in India are

no different from those being witnessed in other parts of the world.

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Trends in the Consumer Appliances

he home appliances industry

precision, multiplicity and reliability.

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Trends in the Indian

Director Marketing & Strategy,

he Indian HVAC industry is vibrant and dynamic with trends

Movement toward the global trend

tence during installation as well as

Back-end support systems