BackVu’s bet on luxury televisions pays off, yields 37% YoY growth, 3x pre-COVID profits
Devita Saraf's Vu Televisions focuses on luxury and large-sized TVs, with 80% of revenue coming from 50-inch screens or higher. It has seen a 3x jump in profitability and is gaining market share in the premium segment
Premium Vu Televisions has always been focused on the luxury and large-size TV audience
Founded by Devita Saraf, Vu started when the market of flat panel TVs in India was 300,000 units and the starting cost of a flat panel TV was Rs. 40,000. Vu focused its R&D and customer service on high-end products like the 84-inch TV launched in 2012 and sold its products through select retail outlets in tier 1 cities. This strategy and focus led Vu to become a Rs. 100 cr company by 2015.
Vu then applied its experience to build an entire range of TVs starting from 32 inches and pioneered selling TVs via e-commerce marketplaces. This enabled Vu to grow to a customer base of more than 3.5mn, with 60 per cent of the revenue from 32/40 inch TVs and as a result, Vu grew to Rs. 940 cr in revenue by 2019. Vu continued its focus and innovation in large-sized displays with the launch of the Vu 100-inch TV (costing Rs. 20 lakh) in 2018.
Post-COVID Vu decided to exclusively focus on the premium and large-sized TV segment catering to upwardly mobile Indian consumers. More than 80 per cent of Vu's revenue comes from 4K TVs above 50 inches in size and Vu has discontinued manufacturing 32"/40" TVs completely. Vu's 85-inch Masterpiece TV is one of the largest-selling 85-inch TVs in India, and its Masterpiece Glo QLED range (starting at Rs. 65,000) has become the largest-selling premium QLED online with over 9,000 customers in one year. Vu is exclusively focused on the luxury and premium TV segment and is gaining market share alongside Sony, Samsung, and LG.
With this strategy, Vu has seen a 3x jump its in profitability compared to 2019. Vu is a unique anomaly as it is profitable, debt-free, and is exclusively focused on the luxury and premium segment.
The Premiumization of TVs and OTT opportunity
COVID completely changed the entertainment landscape, with OTT viewing starting to replace going to a cinema. This has led to a clear shift to large and ultra-large-sized televisions as customers want the cinema experience for OTT content. Market research shows that the overall TV market grew 13% in 2022, and the market for large-sized TVs grew by 37%. Devita Saraf and Vu recognized this trend back in 2021 and went back to their original focus on making premium and large-sized TVs with more than 80% of its revenue from TVs of 50-inch screen size or higher (compared to approximately 35% for the TV industry).
For years ultra-large sized screens, which relied on projection, have been relegated to dark, dingy and purpose-built home theatre rooms. The clunky home theatre experience is cumbersome to operate and install. Most of all, like a weekend home at an inconvenient location, it is most used whennewly installed and slowly loses popularity for entertaining and entertainment.
The Vu 98 Masterpiece TV
Vu launches the Vu 98 Masterpiece TV for Rs. 6,00,000 on Amazon to bring the ultimate cinema experience for OTT content at home. As a pioneer of ultra-large-sized TVs in India, Vu launched the Vu 100-inch TV in 2018 at Rs. 20 lakh. Now with a superior picture, sound and Smart TV technology Vu launches the Vu 98 Masterpiece TV at Rs. 6,00,000 and the Vu 85 Masterpiece TV at Rs. 3,30,000.
Vu has been successful in the ultra-large sized and luxury TV segment because of product quality and direct company service. Vu TVs are made in state-of-the-art robotic assembly plants and Vu personnel handle all installation as well as after-sales service. Vu's Masterpiece TV range has over 9,000 customers and more than 75% of its customers give it a 5-star rating on Amazon.
Disclaimer: This article has been produced on behalf of the brand by HT Brand Studio.
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