Many companies are offering 65-inch aluminium body LED TVs for Rs 42,580 per set, while the ones with plastic bodies at Rs 39,032 a set
If you are planning to start LED TV business in India, it might be the best time to do so as several China-based OEMs are offering 32-inch LED TVs at as low as Rs 5000 ($66 to $ 70) apiece.
This is a great business opportunity as the most affordable 32-inch LED TV currently available for B2C purchase on a leading e-commerce portal in India comes with a price tag of Rs 8,999.
At the ongoing India International Electronics & Smart Appliances Expo 2018, many exhibitors are also offering 65-inch aluminium body LED TVs for Rs 42,580 a set, while one with plastic body at Rs 39,032 per set. Smart fitness bands claimed to be of ‘A+’ quality are available at as low as Rs 300 apiece while Bluetooth headsets are available at Rs 550 apiece.
Chinese OEMs trying to build consumer base in India
More than 25 exhibitors from China are displaying their products at the expo being organised at Pragati Maidan in New Delhi, attempting to build a consumer base in the country.
The event that is scheduled to continue till December 7, 2018, is hosting several China-based OEMs specialised in mass manufacturing of LED TVs, panels, smart wearables, Bluetooth audio devices, smartphone accessories and a range of other products.
Many of the exhibitors we visited on the first day of the expo claimed having big clients in India, but none were ready to reveal the names of any.
One of the LED TV OEM exhibitors was seen playing a video of a leading Indian appliances and consumer brand on its screen. However, before we could take a photograph of the same, the exhibitor changed the video. The same exhibitor was ready to offer us ‘A-‘ quality 32-inch LED TV for as low as Rs 4000.
Another exhibitor who claimed to be a supplier of one of the world’s renowned smart speaker brand was offering an AI-enabled smart speaker at Rs 2800 apiece. The exhibitor even claimed that the quality of the speaker was more than perfect, and they received only 0.5 per cent complaints out of the total units they manufactured.
Calculating the odds
The minimum order quantity (MOQ) figures, as quoted by several OEMs exhibiting at the expo, vary from 100 units to 500 units. Majority of these OEMs are ready to provide 1-year warranty with the LED TVs. The rates can be negotiated further if an order goes beyond 1478 units.
An OEM at the expo told us that a Carton can hold 1478, 32-inches LED TV units, which brings down their packaging cost resulting into profits that can be passed on to the buyer.
Going by simple math, ordering 100 32 LED TVs will cost around Rs 5,00,000. And even if each TV is sold at a price of Rs 8,000, the investor will end up with a profit of more than Rs 2,00,000 (assuming branding and operations cost to be 1,00,000). The profits will increase with quantity.
Smart wearables and fitness bands
We met another exhibitor who was into mass manufacturing of smart wearables and fitness bands. This exhibitor has a MOQ of 500 units and initially offered ‘A+ quality’ fitness bands with features including capability of rejecting calls and reading texts at Rs 425 apiece. The exhibitor after a little negotiation was ready to provide 1,000 pieces at Rs 320 per piece.
Though there are fitness bands available for as low as Rs 550 in India, he stressed that for same the quality he is providing, it will cost more than Rs 1000 apiece. He was also ready to provide a year’s warranty on all the products.
Bluetooth headsets with MOQ of 100 quantities start with the price tag of Rs 190 apiece. The ‘top quality’ Bluetooth headsets that also looked ‘premium’ were labelled at Rs 430 apiece by the OEMs. Similarly, Bluetooth karaoke mics with in-built speaker are available for purchase at Rs 430 apiece. This OEM stressed that he has the capability to manufacture 4000 karaoke mics in one day.
In India, Bluetooth headsets are currently available at a starting price of Rs 350. Karaoke mics with built-in speaker are sold above Rs 550 in the local markets.
The prices quoted by these OEMs did not include shipping costs. However, an OEM specifically told us that shipping large size consumer appliances like LED TVs, would not cost much and will not add more than 2 to 3 dollars apiece. He added that shipping costs vary with freight service providers, but getting large quantities shipped (more than 1400 units) can further help in reducing the overall costs.