We recently spoke with Mr Avneet Singh Marwah about Thomson’s strategy for dominating the premium yet affordable TV market in India, the impact of the new GST regulations, and their ambitious plans for the festive season.
Q: We recently reviewed the new Thomson QD-MiniLED TV, and it offers flagship performance at an affordable price. Can you shed light on how you achieved this?
A: Our ability to deliver advanced technology at great prices is rooted in the ‘Make in India’ initiative. We’ve been manufacturing televisions in India for 30 years, giving us deep experience. We source locally wherever possible and import raw materials directly from the supplier, which streamlines quality checks, product development, and innovation.
Beyond hardware, our strength is in software. Thomson is unique because we offer TVs with Google, Jio, and Coleta operating systems, all fully optimised for the Indian consumer. We have dedicated labs to test our TVs against Indian user behaviour, ensuring both our hardware and software are perfectly aligned with the market’s needs.
Q: What was the company’s strategy behind this aggressive pricing, and how do you plan to maintain profitability? What compromises were made?
A: I want to be very clear: we don’t compromise on our product. We achieve affordability through economies of scale and backward integration. Handling high volumes and our three decades of manufacturing experience allow us to optimise costs effectively. Our product team works on sourcing core raw materials directly from the original supplier, ensuring both quality and value.
Our motto is to stay super affordable in the premium segment. Frankly, major global brands often charge 3 to 4 times more for similar technology. We believe in offering the right price at the sweet spot, and that’s how Thomson is driving disruption in the premium TV market.
Q: How does local manufacturing of these advanced TVs help Thomson in terms of cost optimisation and supply chain management?
A: Since the government’s push for ‘Make in India’ and the ban on CBU (Completely Built Unit) imports, all brands have to manufacture locally. For us, this is an advantage. Our long-standing presence allows us to manage our supply chain efficiently. We source what we can in India and import essential components directly, which gives us control over quality and costs, and helps us innovate faster.
Q: The GST Council has reduced the tax on TVs above 32 inches from 28% to 18%. How will this directly impact the end price of Thomson’s TVs?
A: The impact will be massive and immediate. There will be a direct price benefit of over ₹14,000 on our 75-inch models and over ₹10,000 on our 65-inch models. This will lead to a significant slash in prices for the consumer, especially when combined with festive offers.
Q: Do you believe this GST reduction will significantly boost consumer demand and accelerate “premiumization” in the Indian market?
A: Absolutely. After two years of slag, consumer sentiment will definitely improve. We’ll see a major shift towards larger screen sizes. I predict that 55-inch TVs will overtake 32-inch TVs as the most popular size, and we expect to see more than 100% growth in televisions above 50 inches.
Q: How quickly is Thomson passing on the full benefit of this GST reduction to consumers, and how are you communicating this?
A: There is absolutely no delay. We will pass on the entire benefit directly to the customer from midnight on the 21st. This will be communicated through our “double festive offers.” Consumers will get the benefit of the GST reduction first, and then additional festive pricing on top of that, especially during Flipkart’s Big Billion Days sale.
Q: With the festive season around the corner, what are Thomson’s expectations for sales and growth?
A: With the new GST rates, we expect anywhere between 15–20% growth this festive season. The festive period could last for 45–60 days this year, and we feel this combination of lower prices and positive sentiment will create a good spike in TV sales.
Q: What specific marketing and sales strategies are you implementing for the festive season?
A: Our strategy is straightforward:
- Give the direct price benefit to the consumer.
- Focus on larger screen sizes.
- Launch new products at disruptive prices.
We are creating a massive price disruption. For the first time in India, a 50-inch complete QLED 4K TV will be available for less than ₹19,000, a 55-inch for under ₹24,000, and a 65-inch for under ₹33,000. These prices will also include bank offers with ICICI Bank and enhanced exchange offers to encourage upgrades.
Q: How is Thomson tailoring its festive season strategy to cater to Tier 2 and Tier 3 cities?
A: While these markets are key growth drivers, the GST reduction will create a huge disruption in metro cities as well. For Tier 2 and Tier 3, our special strategy is to enable upgrades by encouraging consumers to exchange their old TVs for larger 50 or 55-inch models. To support this, we have launched the affordable Jio TV range, which includes all the necessary tech and apps like Netflix, Prime Video, and Dolby Digital Sound.
Q: The festive season of 2024 saw slower growth. What lessons has Thomson learned from that experience?
A: The slowdown in 2023-24 was a natural market correction. During COVID (2021-22), the growth was huge as people became screen-dependent, and that boom was bound to normalise. This year is different. The GST reduction will improve consumer sentiment and increase spending power, boosting not just television sales but overall consumption.
Q: What next can we expect from Thomson TVs in terms of innovation?
A: By 2026, you will see more technologically advanced televisions with a strong focus on larger screen sizes. We are also working on new operating systems and have a lot of new launches lined up for the first half of 2026. Our goal remains to be one of the most affordable premium brands in the large-screen category in India, and we will be expanding into other product categories as well.
