MAM
Guest Column: Invest NOW in Indian TV industry
As per PWC 20th Annual Global CEO survey, top 5 concerns for entertainment and Media CEOs worldwide are : Changing consumer behaviour, availability of key skills, volatile energy costs, uncertain economic growth and speed of technological change. Despite the concerns as above, nearly 35%global Entertainment and Media CEOs are confident about improvement in global economic growth and in 12-month revenue prospects.
In an absolute contrarian play-out case of India, almost all these factors are weighing in favour of the growth of M&E industry in India. There is therefore every reason for investing in the emerging great Indian M&E story.
Micahel Porter’s five forces analysis is a framework for analyzing the level of competition within an industry and business strategy development. It draws upon industrial organization (IO) economics to derive five forces that determine the competitive intensity and therefore the attractiveness of an industry.Porters Five Forces Analysis throws up an overall high degree of attractiveness for the M&E industry in India:
Competitive rivalry
With the M&E industry being highly fragmented with no single enterprise having large enough share to influence the entire sector along with high fixed costs & highly perishable products, the risk factor here at best is medium.
Threat of new entrants
With involvement of high sunk costs, high capital requirements and access to distribution difficult, at best the risk factor here is low.
Substitute Products
Once again risk factor here is low as Film industry, print media and internet and significant sporting events like World Cup, T20 etc & other cultural events
Bargaining Power of suppliers
Since the number of suppliers is very high which leads to the low bargaining power with them and with an ever increasing number of content providers, risk factor once again is low.
Bargaining Power of customers
Increased globalisation along with consumers’ loyalty towards one channel being less owing to a variety of alternative sources of entertainment being available, this factor can at best have a medium risk attached to it.
Conclusion
In its annual sector forecast for 2017-2021 survey undertaken by PWC across 54 countries, M&E sector is expected to grow at a CAGR of 4.2% which is lower than the projection for the average GDP growth. Lower than the average GDP growth will be for the first time in global markets signalling that the sector may be plateauing in many of these countries.
Unlike such sectoral shrinkage in global markets, in India, M&E sector projected to grow at near 10.5% and TV at 11% plus is far above the projected economy GDP growth rate.
The right time to invest in Indian M&E industry and in Indian TV industry is therefore right now.
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(Piyush Sharma, a global tech, media and entrepreneurial leader, created the successful foray of Zee Entertainment in India and globally under the ‘Living’ brand. The views expressed here are of the writer’s and Indiantelevision.com may not subscribe to them.) |
Brands
Raj Cooling Systems launches Agreyas appliances brand
Emraan Hashmi named brand ambassador for consumer appliance push.
MUMBAI: A company known for cooling solutions is now heating up its ambitions in the home appliances market. Raj Cooling Systems Pvt. Ltd. has launched a new consumer appliances brand, Agreyas, marking its entry into India’s rapidly expanding home appliances sector valued at more than Rs 1.5 lakh crore. The move represents a strategic diversification for the company, which has traditionally focused on cooling solutions for residential, commercial and industrial applications. Through Agreyas, the firm plans to tap into growing consumer demand for energy efficient and technology driven household appliances.
To build brand visibility, Agreyas has appointed Emraan Hashmi as its brand ambassador. The campaign has been developed under the banner of Zoommantra Productions, with actor and filmmaker Rohit Roy contributing to the creative direction.
The brand’s initial portfolio will include mid premium air conditioners, washing machines, geysers and other white goods designed to cater to modern Indian households seeking efficient and reliable appliances.
Raj Cooling Systems, founder and chairman Kalpesh Ramoliya said the launch aligns with the company’s broader expansion plans.
“The launch of Agreyas is in line with our vision to build a strong presence in India’s consumer electronics and home appliances market. The brand has been developed as a standalone identity to meet the evolving needs of Indian consumers,” he said.
Hashmi said the collaboration comes at a time when Indian buyers are increasingly looking for innovative and functional home solutions.
“I’m looking forward to working with Agreyas at a time when consumers are seeking more innovative and efficient home products. The brand reflects changing consumer behaviour around functionality, innovation and ease of use,” he said.
Raj Cooling Systems plans to invest around 10 million dollars in developing the brand, with an additional 5 million dollars earmarked over the next three to five years for product development and distribution expansion.
Agreyas will follow a multi channel distribution approach, selling through online platforms, retail outlets and dealer networks aimed at both urban and semi urban markets across India.
With the launch, the company is positioning Agreyas as a standalone consumer facing brand while continuing to leverage its existing manufacturing, engineering and research capabilities built through its core cooling solutions business.
