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We had a long freewheeling chat with Mr. Avneet Singh Marwah on Blaupunkt's extensive focus on the Indian TV market. From buyer preferences and trends to the most popular price segments and push toward online channels, here's what Mr. Avneet Singh Marwah, Director, and CEO of Super Plastronics Pvt. Ltd had to say on how SPPL sees Blaupunkt as a key differentiator in the Indian TV market. For the uninitiated, Super Plastronics Pvt. Ltd (SPPL) is a manufacturing company established in 1990. SPPL is a brand licensee for Blaupunkt, Thomson, Kodak, Westinghouse, and White-Westinghouse (Trademark of Electrolux). SPPL makes the entire TV line-up for these five brands in India at their Noida-based manufacturing facility.
Q) What motivated Blaupunkt to expand its operations in India and invest INR 300 crores in the Indian Electronics Manufacturing Market?
Blaupunkt's strong brand equity in India over four decades and a legacy of 120 years in German engineering have propelled its expansion. Positive responses in the premium segment after entering the Indian television market fueled significant growth. This success drove an INR 300 crore investment in the Indian Electronics Manufacturing Market. The focus is on producing large screens and integrating AI technology for seamless device connectivity, with a dedicated Research and Development center accompanying the manufacturing facility. This expansion leverages Blaupunkt's reputation, successful market entry, and commitment to innovation for India's technology-savvy consumers.
Q) What change can consumers expect in the product range post the investment? Will Blaupunkt have a premium range? Can we expect OLED or Mini-LED TVs?
Following our conversation, consumer preferences are leaning toward larger screens, prompting us to emphasize this aspect. Notably, there exists a void in the premium affordable category due to the departure of several brands. Blaupunkt is poised to address this gap by venturing into that category while maintaining a strong focus on delivering superior sound output at accessible price points for larger screens.
Blaupunkt's strategic direction entails an enhanced emphasis on the premium segment, as evident from the successful launch of QLEDs. This success sets the stage for further expansion into various premium technologies, broadening our product range. While specific details about OLED or MiniLED TVs are yet to be confirmed, we're committed to unveiling innovative and premium offerings, that align with our reputation for excellence. Stay tuned for forthcoming announcements in this regard.
Q) Blaupunkt is a brand that is known for sound quality, how does it plan to expand that perception beyond sound quality?
Blaupunkt has garnered a reputation centered around exceptional sound quality. The brand's relaunch in the Indian market revolved around this distinctive proposition, offering televisions with unparalleled sound output, resulting in significant success. This achievement marked the genesis of our journey from premium TVs to encompassing smaller screen sizes as well. This strategic expansion has not only broadened our product range but also transformed consumer perceptions. By consistently delivering remarkable sound output within our televisions, we have effectively negated the need for external sound bars. Blaupunkt's commitment to superior audio experiences remains unwavering as we continue to redefine the boundaries of excellence beyond sound quality.
Q) What is the price segment and screen size segment that Blaupunkt wants to target? What % of the market is Blaupunkt targeting in that market?
Blaupunkt's strategic focus is on the 55-inch and 65-inch segments, backed by the substantial success Blaupunkt has achieved in the past year. For the 55-inch category, we aim to maintain prices under 40,000, while the 65-inch QLED models will be targeted below 50,000. These segments reflect our strong optimism and accomplishments. The shifting market trend towards premium options is notable, with 40% being 4K and out of the remaining 60%, 20% being FHD. This aligns with our dual targeting approach, encompassing both FHD and 4K markets. Additionally, a 32-inch option will be available to cater to a wider selection of preferences.
Q) What factors contributed to Blaupunkt's additional investment in India, and what are your plans for expanding into the Global Market?
As I mentioned in the first question, Blaupunkt's substantial equity built over four decades in India, coupled with its esteemed 120-year German engineering legacy, has paved the way for remarkable growth. Positive feedback, particularly in the premium television segment, prompted us to expand our operations and invest in larger screen manufacturing and AI-driven products. The decision was further bolstered by the desire to establish a comprehensive R&D center alongside the manufacturing facility. Simultaneously, we are poised to introduce our Android televisions to the global market, with a significant announcement expected next year. These strategies are rooted in our commitment to leveraging trust, technology, and innovation for continued success.
Q) SPPL makes TVs for other brands like Kodak, Westinghouse, etc. How does it keep manufacturing and engineering separate?
SPPL employs distinct strategies for its various brands, tailoring product lines and tactics to suit diverse consumer preferences. For instance, Blaupunkt focuses on the premium segment with 4K/QLEDs, while other brands cater to HD, FHD, and entry-level markets. To uphold differentiation, manufacturing and engineering processes remain separate for each brand, preserving their unique characteristics. Notably, Blaupunkt's exclusive partnership with Flipkart capitalizes on the retailer's significant market presence. SPPL's adept management of varied strategies underscores its flexibility and proficiency in delivering tailored solutions, enabling the company to effectively navigate the nuanced landscape of television manufacturing and sales.
Q) Will the channel focus continue to be online? Or will Blaupunkt get into offline channels as well?
Currently, our presence spans 19,000 pin codes through our exclusive online partner, Flipkart. While our current strategy primarily centers on the online channel, we do have plans to expand into offline and other portals in the future. Presently, our collaboration with Flipkart has yielded exceptional results, surpassing our targets and fostering significant growth. As we maintain this momentum, our intention to diversify and explore additional channels remains on the horizon, reflecting our commitment to adapting and expanding based on market dynamics and consumer demand.
Q) What kind of set-up does Blaupunkt have when it comes to after-sales service and support?
Blaupunkt has established one of the most extensive and comprehensive after-sales service networks in India. Covering an impressive 19,000 pin codes, our door-to-door service extends from the northernmost regions of Jammu & Kashmir to the southern tip of Kanyakumari, and from the western expanse of Kutch to the northeastern states. This extensive reach encompasses both tier-one cities and metropolitan areas. Our commitment to swift and efficient service is evident in our target of under 12 hours for installation in tier one and metros, and less than 24 hours for tier two and three locations. This focus on responsiveness extends to after-sales service, with turnaround times of under 24 hours in tier one and metros, and under 48 hours in tier two and tier three regions.
As a manufacturer, we possess the advantage of readily available spare parts, enabling us to promptly address issues. This capability, combined with our stringent quality control measures, ensures that our products maintain the highest standards of quality and performance. Our extensive service network, rapid response times, and unwavering commitment to excellence reflect our dedication to providing top-tier customer support that's why our service and return rates are minimum in the category.
Q) What kind of new and emerging trends do you see in the Indian TV market?
The Indian TV market is undergoing a significant transformation marked by several emerging trends. The accessibility of free sports channels via smart TVs has been a game-changer, evident during events like the FIFA World Cup and IPL, where viewers embraced app-based platforms over traditional set-top boxes for match viewing. The forthcoming World Cup is expected to follow suit, reinforcing the trend. Lockdowns during the pandemic triggered a surge in the popularity of Over-The-Top (OTT) content, particularly regional offerings. This highlights viewers' growing preference for content aligned with local languages and cultures. Smart TVs are at the forefront of these shifts, becoming the hub for diverse content consumption. Notably, the trend of acquiring a second television for homes is on the rise, driven by individual likings for tailored OTT content experiences. With these trends driving market growth, the Indian TV landscape is undergoing dynamic changes that emphasize the evolving nature of television consumption.