TV Set Prices Surge Ahead of Cricket World Cup in Pakistan

Strategic Insights -

TV set assemblers in Pakistan have increased prices by Rs700 to Rs1,000 in anticipation of growing demand ahead of the Cricket World Cup, starting February 16, 2011. Market dealers in Karachi reported that 21-inch TV sets, such as the Noble TV, have seen price hikes, with the wholesale price of the LG 21-inch TV set rising to Rs13,500 from Rs12,800. Retailers are also expected to add an additional Rs1,000 to Rs2,000 to the prices. Despite 27 days remaining before the World Cup, sales have yet to pick up, prompting manufacturers to accelerate production.

Key Takeaways:

  • TV set assemblers in Pakistan have raised prices by Rs700 to Rs1,000 in anticipation of increased demand for the Cricket World Cup.
  • The wholesale price of 21-inch Noble TV has surged to Rs11,000 from Rs10,000, while the LG 21-inch TV set has increased to Rs13,500 from Rs12,800.
  • Retailers are expected to add Rs1,000 to Rs2,000 to the wholesale prices of TV sets.
  • Manufacturers have accelerated production, with TV production rising 40.3% in July-November 2010-2011 compared to the same period the previous year.
  • TV production in November 2010 increased by 15.5% to 42,048 units compared to 36,382 units in November 2009.
  • Price hikes have been influenced by changes in taxes and duties, as well as the devaluation of the rupee against the dollar, leading to costlier imports of parts and accessories.

Statistics:

  • TV production rose by 40.3% to 170,280 units in July-November 2010-2011 compared to 121,312 units during the same period the previous year (Federal Bureau of Statistics).
  • In November 2010, TV production increased by 15.5% to 42,048 units compared to 36,382 units in November 2009 (Federal Bureau of Statistics).
  • A 21-inch TV set, which was priced at Rs10,800 in 2009, now costs Rs13,200 (Regal Chowk dealer).
  • A 21-inch TV set, which was priced at Rs13,300 in 2009, now sells for Rs14,700 (Regal Chowk dealer).

Sources:

  • TV set assemblers and market dealers in Saddar Electronics Market, Karachi
  • Federal Bureau of Statistics (largescale manufacturing figures for July-November 2010-2011)
  • Regal Chowk dealer (prices of TV sets in 2009 and 2011)