Germany is world renowned for its flawless engineering and manufactured products. Blaupunkt is a German consumer electronics maker willing to invest around $300 million in the Indian TV business. The investment would be spread across 3-5 years. The Indian brand Trigur from Sonepat, Haryana will be its partner in marketing/ branding and manufacturing. Trigur’s plant in Sonepat, Haryana will be its base in India.
Blaupunkt already has its Bluetooth speakers available in India via online and offline channels. The company aims to have a business of around INR 500 crore in India and a few of its neighbouring countries including Sri Lanka, Nepal and Bangladesh. These countries are not as big a market as India but they have high potential too as not many options are available in these countries when it comes to consumer electronics. The manufacturing unit in Sonepat will be making available the products not just for India but also the neighbouring countries.
Indian TV market has witnessed a phenomenal growth in recent years especially since the arrival of affordable smart TVs. Currently, the entry-level TV market is being dominated by companies such as Xiaomi, Thompson, TCL, Micromax and Panasonic. The company will be in direct competition with Xiaomi, which has an upper hand in almost everything starting from manufacturing prowess in India, affordability, consumer awareness, distribution channels and so on. Companies such as Hisense and Suning are still to enter the Indian market and when they do the competition will be even more cut-throat.
Online sales of smart TVs and LED TVs have increased manifold as many people are feeling more confident to purchase goods worth high price online. This is the reason that the German company is also entering the Indian market to earn profits at the right time of growth. The reputation of German companies is already very high, as Indians believe in German technology due to their superior quality and finesse. However, the complex Indian price sensitive market is not easy to predict. The Chinese manufacturers are the stars in the Indian market for their good quality and extremely competitive prices.
– Soumya De