Consumer demand for electronics is high in India and companies have been continuously striving to capture the nation’s market. Chinese counterparts of Toshiba and Sharp are now reportedly jumping on this opportunity to relaunch their products in the country.
Taiwanese tech giant Foxconn Technology Group which recently acquired Sharp Corp. in a $3.5 billion deal aims to introduce smartphones, televisions, air-conditions, air-purifiers and other devices in India. While Skyworth Electronics, Chinese owners of Toshiba are also busy mapping out strategies to set its foot in market with their television series.
Both the brands are inactive with no supplies of inventory in the Indian market for the past few months. But both will enter the market before the festive season. Foxconn is already in talks with a distributor and Skyworth too is formalising its plans.
according to a senior industry executive.
The Entry Plan
As per the reports, the two brands will initially resort to low pricing strategies to catch the eye of consumers, akin to what other Chinese brands(ahem! Xiaomi) have previously done. They are at present focusing on after-sales service in the country, waiting for the new owners to give a green flag for the business plans. The deals elicit the serious commitment of such companies to succeed in segments other than smartphones.
Toshiba had signed an agreement last year with Skyworth handing over its television business to the latter. The deal which extended to Asian markets excluding China was made by the Japanese giant to concentrate its management resources on the Japanese market. While, Foxconn took control over Sharp with an intention to revive its plummeting business. Sharp India had last December announced its decision to sell the Indian operations.
Currently Samsung, LG and Sony hold most of the share of Indian television market. MNC brands like LG, Voltas, Samsung, Whirlpool, Godrej have been dominating the white goods’ market like refrigerators, washing machines and air conditioners.
Till recently Chinese consumer electronic companies have faced little success in India with TCL and Konka exiting the market. Companies like Midea, Skyworth and Foxconn are trying to make a big entry with their association with established brands like Carrier, Toshiba and Sharp. Eventually, categories like television could become fragmented like smartphones with their entry.
said Pulkit Baid, director at Great Eastern, one of East’s largest white goods retail chain.