KARACHI, Aug 10: Consumers brought home over 850,000 locally assembled TV sets in July-June 2003-04 as compared to 764,000 sets in the previous fiscal
, thanks to cheap consumer financing, craze to watch entertainment and news channels and overall positive economic indicators.
In 2001-02, the local production of TV sets stood at 450,000 units only. But the year 2002-03 saw the reversal of the fortunes when the government provided protection to the local industry by giving tax reliefs and imposing duties on imported TV sets, thus pulling it out from the hot waters.
The number of local manufacturers also moves up to 14 from 10 in 2002-03, who are rolling out various models of TVs. Chairman Pakistan Electronics Manufacturers Association (PEMA), Sarfarazuddin said that if the economy sustained the trend and banks and leasing companies continued to make consumer goods financing more attractive then the TV production would surely escalate in the current fiscal year.
He said impressive economic performance of the country coupled with opening of new channels and cable systems have fanned the buying passion among the consumers. About 60-65 per cent of total TV sales goes to Punjab on population basis followed by Sindh with 35 per cent, while the rest is shared by NWFP and Balochistan, he said.
"Besides consumer financing, declining prices of TV sets during the last two years in view of stiff competition among local producers have also lured a sizable number of buyers," he added.
The TV market is expected to remain buoyant in the current fiscal as foreign channels particularly Indian ones are gaining popularity among masses, a dealer said. Besides entertainment, domestic and global political crisis, situation in the Middle East, especially Iraq crisis, Israel's aggression on Palestinians, cricket matches, etc., are other important issues that tempt consumers to own a TV to monitor current developments through organized cable network, he added.
Changing designs of TV sets after every three months and additional features, scores of models and dwindling prices are encouraging people to replace old TV sets with new ones.
Besides availability of cheap financing by banks and leasing companies, markets have seen the opening of many outlets in various areas which are offering TV sets on easy instalments.
Contrary to falling prices there is a segment in our society which still cannot afford TV at these rates. For such consumers, cheap colour reassembled TV are available in the market.
Many market players are now assembling small TV sets of 14-17 inches in the cottage industry by using the second hand picture tubes of computer and rolling out colour TV with new outer casings, arriving from China.
Majority of dealers are offering public to make your computer a TV with facility of 256 channels with speakers and remote besides offering three months warranty. For example, a 14-inch colour TV is priced at Rs3,000-3,100.
Besides, Chinese TV sets have also hit the market with low price tags. A 21-inch TV is available at Rs8,000-9,000 while a 14-inch TV can be purchased at Rs5,000-6,000.
Price conscious buyers take the costly ride by purchasing Chinese or computer monitor turned TV sets despite knowing the fact that these items are not long-lasting as compared to Korean assembled TV sets.
It is a stark reality that colour TV has never been so cheap in the history of Pakistan. Buyers are literally confused in making a quick decision for buying a TV set due to an oversupply situation in the market nowadays.
The entry of some banks in consumer financing at zero per cent down payment and mark-up has somewhat further flared up the demand of locally assembled colour TV as well as other consumer durables. However, this facility does not cover the smuggled, under-invoiced and Chinese TVs.
According to State Bank's third quarterly report 2003-04, a total of Rs3.4 billion has been supplied under consumer financing for home appliances during July-March 2003-04. The total figure for 2003-04 for financing is not available but keeping in view a record private sector credit of Rs134 billion by banks in April to June 2004 - the consumer financing must have gone further up.
