Bollywood off to a headstart in 2007
Guru, Salaam-e-Ishq success raises hopes of a repeat of 2006 dream run
While 2006 ended with a big bash for the Hindi film industry with movies raking in the moolah both at home and overseas, 2007 promises to propel the growth further. The first month of the year has paved a decent path for Bollywood's journey for the rest of the year.
Although the year started with the drab Kudiyon Ka Hai Zamaana and got the audiences’ disapproval, Mani Ratnam's Guru garnered public appreciation and boxoffice revenues. The total collection for the movie in India till now is Rs 24.6 crore, while the collections overseas was more than Rs 10 crore in the first ten days. Parzania, with Sarika and Naseeruddin Shah in the lead role, caters to a niche audience and has been gaining critical acclaim from that domain.
The only other exception was Salaam-e-Ishq. "The film's collection dropped sharply after the first day itself," says Taran Adarsh, a trade analyst. The first week collection for the multi-starrer is Rs 8.2 crore. Overseas, the collection for the film fell by 72% in the UK after collecting Rs 2.54 crore for the opening weekend.
The brilliant show put up by Bollywood in 2006 has raised expectations for this year. "The year looks promising with the line up of good movies," says Adarsh. The year has movies ranging across period dramas like Eklavya and Jodha Akbar and sports-based movies like Goal and Hattrick. The biggies include Yash Raj Films' Tara Rum Pum, Chak de India and Sanjay Leela Bhansali's Saawariya. The sequel of animated movie Hanuman is also slated for release. Movies that are expected to be a feast for multiplex goers include Provoked, Black Friday and The Namesake. Some of the anticipated and controversial movies like Deepa Mehta's Water and RGV Ke Sholay will also be released this year.
Says media analyst Sanjeev Hota, "The year looks good but it's difficult to predict anything for Bollywood. This year would not be as spectacular as 2006. But the overseas market is growing and the growth prospects are highly positive."
With films like Kabhi Alvida Na Kehna getting as much as Rs 32 crore from the overseas market and Dhoom:2 still running for the tenth week with a total collection of Rs. 40.23 crore in India, the year 2006 has been dazzling for Bollywood. Lage Raho Munnabhai had the nation talking about Gandhism, Rang de Basanti set the youth's pulse racing, Fanaa marked the comeback of Kajol and Omkara, based on Shakespeare's Othello, was a brilliant piece of art according to critics. Action and special effects ruled the roost with Krrish and Dhoom:2.
Reliance to sell DVD players for Rs. 450
In a move that is sure to set off a price war in the segment, Mukesh Ambani led Reliance Retail plans to sell DVD players at $10-$12 in India.
At the current rate, that's a jaw-dropping price tag of Rs 450-Rs 540, which tradesmen term dirt cheap. Reliance is expected to source these low-cost DVD players from China where it is in the process of setting up a sourcing office, with an employee strength of 80.
"China is where most of our in house labels, especially in the consumer durable segment, are going to be sourced from," a senior official at Reliance Retail told the press.
However, these low-cost DVD players will not come with the de rigeur after sale services which the Company has been very actively claiming for its consumer electronics. Instead, they will belong to the use-and-throw category.
Currently, the 2.5 million units DVD player market is dominated by LG, Phillips, Samsung and Onida. Over 70% of the market is in the organised segment. The unbranded, low cost DVD players imported from China retail on the street for as low as Rs 1,500 - Rs 1,800 and are particularly popular among cable operators. Retailers in China are known to command hefty margins owing to the bulk purchases made by them and are often seen to bully their suppliers. Given the VAT rate in the country, a Company manufacturing on a large scale should be able to sell a DVD player for around $20 in India. "However, a Company may sell it for even lower than $20, which isn't a profitable proposition but could be done to attract customers into buying a basket of products which is overall profitable to the firm", an industry expert commented.
Reliance Retail is expected to begin rolling out its consumer electronics stores by June. The Company is also opening its first hypermarket in Ahmedabad in April. "The hypermarket will be spread over 1.70 lakh square feet and will sell everything except for a yatch", another Reliance Retail official told the press.
According to industry experts, The Bharti-Wal-Mart announcement has definitely made Reliance even more aggressive in competitive pricing, as Wal-Mart is known world over for opening price points, and in the price sensitive Indian market, the high price elasticity of demand across such product ranges could well decide the market shares and long run profit margins of retail giants.
Source: ScreenIndia
While 2006 ended with a big bash for the Hindi film industry with movies raking in the moolah both at home and overseas, 2007 promises to propel the growth further. The first month of the year has paved a decent path for Bollywood's journey for the rest of the year.
Although the year started with the drab Kudiyon Ka Hai Zamaana and got the audiences’ disapproval, Mani Ratnam's Guru garnered public appreciation and boxoffice revenues. The total collection for the movie in India till now is Rs 24.6 crore, while the collections overseas was more than Rs 10 crore in the first ten days. Parzania, with Sarika and Naseeruddin Shah in the lead role, caters to a niche audience and has been gaining critical acclaim from that domain.
The only other exception was Salaam-e-Ishq. "The film's collection dropped sharply after the first day itself," says Taran Adarsh, a trade analyst. The first week collection for the multi-starrer is Rs 8.2 crore. Overseas, the collection for the film fell by 72% in the UK after collecting Rs 2.54 crore for the opening weekend.
The brilliant show put up by Bollywood in 2006 has raised expectations for this year. "The year looks promising with the line up of good movies," says Adarsh. The year has movies ranging across period dramas like Eklavya and Jodha Akbar and sports-based movies like Goal and Hattrick. The biggies include Yash Raj Films' Tara Rum Pum, Chak de India and Sanjay Leela Bhansali's Saawariya. The sequel of animated movie Hanuman is also slated for release. Movies that are expected to be a feast for multiplex goers include Provoked, Black Friday and The Namesake. Some of the anticipated and controversial movies like Deepa Mehta's Water and RGV Ke Sholay will also be released this year.
Says media analyst Sanjeev Hota, "The year looks good but it's difficult to predict anything for Bollywood. This year would not be as spectacular as 2006. But the overseas market is growing and the growth prospects are highly positive."
With films like Kabhi Alvida Na Kehna getting as much as Rs 32 crore from the overseas market and Dhoom:2 still running for the tenth week with a total collection of Rs. 40.23 crore in India, the year 2006 has been dazzling for Bollywood. Lage Raho Munnabhai had the nation talking about Gandhism, Rang de Basanti set the youth's pulse racing, Fanaa marked the comeback of Kajol and Omkara, based on Shakespeare's Othello, was a brilliant piece of art according to critics. Action and special effects ruled the roost with Krrish and Dhoom:2.
Reliance to sell DVD players for Rs. 450
In a move that is sure to set off a price war in the segment, Mukesh Ambani led Reliance Retail plans to sell DVD players at $10-$12 in India.
At the current rate, that's a jaw-dropping price tag of Rs 450-Rs 540, which tradesmen term dirt cheap. Reliance is expected to source these low-cost DVD players from China where it is in the process of setting up a sourcing office, with an employee strength of 80.
"China is where most of our in house labels, especially in the consumer durable segment, are going to be sourced from," a senior official at Reliance Retail told the press.
However, these low-cost DVD players will not come with the de rigeur after sale services which the Company has been very actively claiming for its consumer electronics. Instead, they will belong to the use-and-throw category.
Currently, the 2.5 million units DVD player market is dominated by LG, Phillips, Samsung and Onida. Over 70% of the market is in the organised segment. The unbranded, low cost DVD players imported from China retail on the street for as low as Rs 1,500 - Rs 1,800 and are particularly popular among cable operators. Retailers in China are known to command hefty margins owing to the bulk purchases made by them and are often seen to bully their suppliers. Given the VAT rate in the country, a Company manufacturing on a large scale should be able to sell a DVD player for around $20 in India. "However, a Company may sell it for even lower than $20, which isn't a profitable proposition but could be done to attract customers into buying a basket of products which is overall profitable to the firm", an industry expert commented.
Reliance Retail is expected to begin rolling out its consumer electronics stores by June. The Company is also opening its first hypermarket in Ahmedabad in April. "The hypermarket will be spread over 1.70 lakh square feet and will sell everything except for a yatch", another Reliance Retail official told the press.
According to industry experts, The Bharti-Wal-Mart announcement has definitely made Reliance even more aggressive in competitive pricing, as Wal-Mart is known world over for opening price points, and in the price sensitive Indian market, the high price elasticity of demand across such product ranges could well decide the market shares and long run profit margins of retail giants.
Source: ScreenIndia
posted by Kajal G Gopalani @ 1:25 AM
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