Monitor Vendors Facing Challenges at Every Step

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ITPV is tracking with the Monitor players about some of the biggest challenges that lie ahead in front of the monitor industry and how these challenges can be removed.

There are many challenges that lie in front of the monitor players in the market. ITPV is tracking with the monitor players about some of the biggest challenges that lie ahead in front of the monitor industry and how these challenges can be removed.

Informing about such challenges Sanjoy Bhattacharya, Product Group Marketing Head, LG, informed following:

First of all assembled desktop market growth (CAGR) is not impressive in India.

Rapid growth of laptop is a threat over all to desktop as a category.

Cold response from home users to replace the CRT monitors to latest LED/LED monitor.

(1)   Govt. is focusing infrastructure, education & rural telephony in recent union budget we think 1^st time PC buying will be encouraged by this.

(2)   Upgrade (LCD/LED from CRT) from organized & unorganized sector will also drive the growth.

(3)   Convergence of TV & MNT is a high potential growth area.

(4)   Cloud computing, once come in full swing can change the monitor market scenario.

Elucidating further about the challenges faced by the monitor vendors and how these challenges can be removed, Saurabh Grover, Deputy Director, AOC, said, “The growth in Monitor industry is directly proportion to Desktop segment. Notebook growth is the biggest threat, the monitor industry is facing. Parallel issue is the shift in AIO Business by some of the PC Companies. Although there is still good potential for desktop growth in India, but the fast paced growth of notebooks and AIO’s is cutting the growth rate of monitors. This is an Industry shift, an Industry life cycle. Understanding the same, we have also planned the launch of our AIO’s in June this year. AOC has already launched its range of LCD TV’s and plans to sell a considerable volume this year”.

“Closer home, unstable economic situation, Oil crisis due to Middle East Disturbances, Japan crisis etc is casting a lot of uncertainty overall. The next few months are not clearly predictable in terms of economic scenario and Industry growth.  Owing to the manufacturing strength and cost economies of TPV Group, AOC already has a cost competent structure. Locally, India BU also maintains lean overheads, and adds up to this cost efficiency.  We plan to further consolidate our planning and Inventory management, to be better prepared for any unforeseen economic issues”, he added further.

Elaborating on the challenges faced by vendors and means to remove such challenges, Rajesh Thadani, Director- Consumer Business Unit, HSB (Home and SMB) Lenovo, elaborated:

The key challenges faced by monitor industry include the following:

Ø            Fluctuation in prices - being a price sensitive market, a lot of companies face the issue of        continuous ups and downs in the cost; therefore, lots of other factors come into play. Companies often suffer a loss if they are not unable to react to competitive pressures. They get stuck with inventories with dead capital depreciating.  Therefore, there arises stability of cost and price issues.

  Supply-demand – due to demand in western countries like the USA, the consumptiondemand increases during peakholiday seasons (example: Christmas). During that particular season it has been observed that a lot of production units from china are shipped to the USA. As a result, vendors are unable to meet demands in other countries. Due to more demand and less supply the prices go up- demand not being able to match inventories.

Macro economics- certain components are not available due to unforeseen catastrophes cannot be overcome.

One way we can overcome these challenges is by superior forecasting and enhanced supply management at the vendors’ end in terms of storing stocks for every country.

Vinay Awasthi, Director, Desktops, Personal Systems Group, HP India, summarized such challenges in one liner and regarding this he said, “The biggest challenges that lie ahead in front of the monitor industry is Technological shift and staying in the forefront of that”.