Growth rates in sales of premium consumer electronic products such as LED televisions and Blu-ray disc players are outpacing those of mass consumption products this festive season, with rising incomes in a booming economy and a steep fall in prices of these items triggering a demand boom that only promises to get better, thanks to a strengthening rupee.
The prices of light-emitting diode (LED) televisions, high-definition camcorders and home theatres have fallen by up to 30% since January, while Blu-ray disc players cost just half of what they used to at the start of the year, thanks to cheaper raw materials, higher volumes and a stronger rupee.
The drop in prices of some key raw materials and growing economies of scale is the key reason for the steep fall in prices of high-end products, Plus, the rupee has been growing stronger, making imports cheaper.
The Indian consumers have shown good adoption of new technology and this is one key factor fuelling the growth of premium technology apart from factors like growing disposable incomes and increasing affordability.
But electronic companies expect prices of high-end products to come down further over the next 2-3 months with the rupee growing stronger, making imports cheaper.
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