GfK’s latest sales data for the UK’s consumer electronics market makes happy reading for the HDTV retail sector. The numbers show that UK viewers are buying flat-panel TVs at an amazing rate.
“In May,” says GfK, “cumulative sales of HDTVs to date surpassed 10
million (with a total that was much nearer 11 million by the end of
June). Not bad at all for a product which only really started selling
in significant quantities in 2004. In the first six months of 2008
alone, more than 2 million were added and GfK Retail and Technology
expects the cumulative total to be approaching 15 million by the end of
2008.”
Assuming that there will be some homes with more than one HDTV, the
number of homes not yet owning one must be well over 10 million. In
other words, the spectacular uptake of this product so far may not even
equate to half of its potential sales!
But the GfK numbers hide a dark secret. Viewers are not yet buying into
HDTV. GfK says: “This enthusiasm should be tempered by the sobering
thought that an overwhelming majority of HDTVs are not yet relaying
genuine High Definition broadcasts because the digital terrestrial
platform cannot yet broadcast in HD.”
“Fortunately, there has been a sustained growth in Large Screen TVs,
and HD is now a standard feature on all of these products.
Manufacturers and retailers have also been quick to move their focus to
1080p (so-called Full HD) products. By June 2008, this segment
accounted for 18% of Flat TV market volume (and 33% of the turnover).”
And the sets are getting cheaper almost by the week, says GfK. “A key
feature of the world of HD has been the intense pressure on prices. A
comparison between the 52 weeks ending June 2007 and June 2008 confirms
that HD was transformed from an awkward £721 down to a much more
appealing £502. The 32"+ large screen decline was an equally steep £859
to £646, despite the move to larger screen sizes. Narrow the parameters
to 1080p only and things become more dramatic as the price in the same
reporting periods plummets from £1660 to £954! However, the most
interesting statistic to emerge from this analysis was the share that
HD enjoyed in the small/ medium segment (up to 26"). Here the volume
share increased from 37% to 63%.”
“Beyond the retail sales monitor, a consideration of consumer trends
reveals some valuable insight. As the Internet accounted for 29% of
HDTV sales in the first half of 2008, compared to 17% purchasing all
TVs, it seemed sensible to look at consumers who chose the Internet to
purchase a HDTV, whereupon GfK Retail and Technology discovered that
43% of them reported they were looking for the 'best deal' in order to
make the purchase- perhaps demonstrating the power the Internet has as
a perceived comparatively cheap source of purchase.”
“In the 12 months to March 2006, 9% of HDTV sales were for use in a
household bedroom, compared to a dominating 85% of sales intended for
use in the living room. Two years on in 2008- HDTV sales for use in a
bedroom had risen by 10% points to 19%, whilst HDTVs bought for the
living room had diminished to 73%. This illustrates the penetration of
the HD feature across the whole Television market, including smaller
sets being used in additional household rooms, such as bedrooms,
possibly in conjunction with Video Game Consoles.”
GfK’s latest sales data for the UK’s consumer electronics market makes happy reading for the HDTV retail sector. The numbers show that UK viewers are buying flat-panel TVs at an amazing rate.