Television Trends for 2008 - Flat Panel Units Thrive
GfK Asia's data shows that consumers in the Asia Pacific region spent nearly USD 20 billion on televisions in 2008, an increase of USD 600 million over 2007, as flat panel TVs captured nearly 75% of the retail television market. Across the Asia Pacific region, flat panel sets experienced double- digit growth for volume in 2008 over the previous year. Additionally, of the 14 markets in the retail survey, all but two recorded positive year-on-year growth for flat panel TVs in the month of December 2008.
"December 2008 is now the best month on record for flat panel TV retail sales in Asia Pacific, as the region registers retail sales volumes of nearly 1.5 million flat panel TVs," announces Steven Kaiser, Commercial Director CE, GfK Asia. "China leads the way, with almost half of this total volume and 17% year-on-year growth in December 2008. Eight other countries register growth above 40% for the month, compared to December 2007, which was a time before the fears of a global economic crisis began to resonate in Asia."
Of the two mainstream flat panel TV display technologies, LCD TV continues to capture the lion's share of the market, as sales reached nearly 12 million units, compared just over 2 million units of plasma TVs. Volume growth rates reached nearly 35% for LCD TVs and almost 45% for plasma TVs overall in 14 Asian countries.
On a sub-regional basis, consumers in South East Asia spent over USD 3 billion on televisions in 2008 at retail, including conventional TVs, which still account for over 40% of television sales in the area, and newer- technology flat panel TVs. LCD TVs, in particular, recorded 98% growth for volume in South East Asia and nearly 45% growth for value against 2007.
"In the developing economies of South East Asia, LCD TVs are selling very well, even reaching mass market status, as the price points have dipped well below US$800 for smaller screen sizes where LCD continues as the preferred technology," explains Mr. Kaiser. "GfK Asia's data show LCD TV volumes more than double year-on-year in markets like Indonesia, Malaysia and Vietnam. Moreover, these three countries don't slow down much at all in the second half of the year, as LCD TV volumes reach over 450,000 units compared to just 200,000 units during the same period in 2007."
Another region posting double-digit year-on-year growth in flat panel TV sales was Oceania. Mr. Kaiser highlights, "Oceania consumers are traditionally price-sensitive and tend to prefer big screen models. Recent prices for jumbo screens at big-box electronic retailers in Australia and New Zealand continue to drop, supported by heavy in-store promotional activity, and the consumers are responding. Both plasma TVs and LCD TVs are selling well; we record growth rates well over 40% in the second half of 2008 for both TV types in Oceania, with growth rates for plasmas slightly outpacing LCDs. Full HD TVs also continue to become more popular in Australia, where sales increase by more than 250% in the second half of 2008 on-year, and now account for 35% of all flat panel TV sales on a value basis in the country."
Among the two Asian giants, China and India, while the former continues to be a huge market overall, the latter country showed triple-digit growth for LCD sets in 2008. In China over 3 million LCD TVs were sold in the second half of 2008. India registered volume growth above 120% overall for LCD TV in 2008 nationally at independent retailers, which continue to account for the large majority of electronic products sold in the South Asia country. This 120% growth rate is the largest for any Asian country with an overall LCD TV market size above 500,000 units in 2008.
DVD Players and Blu-Ray Disc Players - Consumers Continue to Embrace New Technology
The DVD player market across the twelve Asian countries (Note 2) in the survey maintains its size at over 14 million units in 2008. In particular, South East Asia posted an 18% increase in sales volumes and a 6% improvement in sales value for DVD players when compared to 2007. Overall, consumers in South East Asia (Note 3) purchase over 6.5 million DVD players from retail shops in 2008, valuing USD 360 million.
Blu-ray disc players gained momentum in 2008. "Based on December retail sales, consumers in Australia, Hong Kong, Singapore, and Taiwan increasingly opt for Blu-ray Disc technology, which offers improved video and sound quality when compared to standard DVD. Hong Kong, in particular, makes a decisive move to this new format, with Blu-Ray Disc players accounting for 25% of all spending on video disc players in the month of December. Overall, the recent progress of Blu-Ray Disc in these four countries can be another encouraging sign that Asia Pacific is a technology-first region and consumers here will continue to spend on advanced products," explains Mr. Kaiser.
MP4 Digital Portable Video Players - Personalisation Demand Drives Growth
In 2008, retail sales of MP4 digital portable video players reached nearly USD 1 billion in the ten Asia countries (Note 4) included in the survey, with over 7 million units sold. Total Asia spending on MP4 players was up almost 30% in 2008 against 2007, while volumes were up by nearly 35% year-on-year.
Interestingly, GfK Asia measures diverse trends across Asia in this category. In China, Singapore, and Thailand, MP4 players experience a general decline in 2008 when compared to the previous year, as 5% fewer units are sold. Conversely, 7 countries (Australia, Hong Kong, New Zealand, the Philippines, South Korea and Taiwan) witnessed positive trends in MP4 player sales, as unit growth rates ranged between 25% and 100% in these markets.
"The so-called 'digital life' is an increasingly personalised experience, as compared to the radio days gone by," observes Mr. Kaiser. "Consumers can choose whatever music and video content they want, whenever and wherever they want it. So, MP4 players continue to perpetuate, providing a portable media experience for the tech-savvy, always-on-the-go, always-on-line consumer in Asia and Oceania. Moreover, MP4 manufacturers continue to improve the technology offering in these products: more storage size, new features, brighter displays, and better connectivity; such that prices points are not eroding dramatically. Overall in Asia, the average price of an MP4 player is very stable, down just 4% in 2008 as compared to 2007. In fact, the average price of an MP4 player is even increasing in some Asian countries, implying this can be a very good business for electronic retailers and manufacturers alike."
