The falling value of the Indian Rupee is causing continued pain for LCD TV brands, as their supply chain is primarily outside India, and any fall in the Rupee results in higher input costs. The situation became so difficult that, even in the midst of a slowdown in growth, TV brands have increased prices, on average between 3 and 5%, effective the week of June.12.
An example of the price increase is the case of Onida’s 32 inch CCFL LCD, model LC032HDG, earlier selling at Rs18700 to distributors, and currently being billed at Rs19300, a rise of 3.2%. Videocon has raised prices for some models by 5%.
The price increases do not appear to have impacted sales in June, as customers primarily purchased from existing inventories. However, as retailers begin to replenish stocks in July at the new price levels, they are likely to put pressure on the brands to absorb some of the price increase. With no major events to drive sales, it will be a battle to get TV buyers in India to look past higher prices.