Encouraging weekly trends in Asian Flat Panel TV market

Asia, Consumer Electronics

Despite the ongoing global economic crisis, GfK Asia measured increasing flat panel television retail sales volumes during the December festive period and beyond in both Hong Kong and Singapore. In Taiwan retail promotions spured on November sales.

The GfK Asia Flat Panel Television Weekly Monitor Report highlights recent weekly retail trends and provides an indication of consumer sentiments toward specific television models during recent weeks, including the December 2008 festive period. The GfK Asia Flat Panel Television Weekly Report is produced from data collected directly through a panel of major electrical retailers in Asian countries.

“Recent trends in GfK Asia weekly data are encouraging news for the Flat Panel Television retail business in advanced Asia markets like Hong Kong, Singapore and Taiwan,” comments Steven Kaiser, Commercial Director for Consumer Electronics at GfK Asia.

“The weekly figures indicate that, while consumers are shifting increasingly toward lower-priced models, retail sales volumes are not declining in key retailers, and continued to be stimulated in these three countries during November and December 2008, holding closely to seasonal unit growth patterns measured in 2007.”

Hong Kong and Singapore both saw an upward trend in weekly sales during the festive period among a panel of key retailers, with retail unit volumes increasing 16% and 27% respectively in the two countries in December 2008, as compared to the previous month.

Retail sales in Hong Kong and Singapore were particularly strong during the week 21st – 27th December, registering well above the average weekly sales volumes recorded over the previous four months, and retail sales continue to accelerate the following week, December 28th – January 4th.

In Taiwan, retail promotions led strong sales in the 42-inch LCD TV segment during two consecutive weeks in November 2008, driving overall market volumes during these two weeks more than 40% higher than average weekly volumes recorded since August 2008.

A shift of consumer preference towards lower-priced models with smaller screen sizes is apparent in all three markets. Flat Panel TV models with smaller screen sizes (below 46 inches) are well-received by consumers in Hong Kong, Singapore and Taiwan, while sales of larger Flat Panel TVs (46 inches and above) stagnated recently in these markets.

This correlates to the overall price erosion in the Flat Panel TV category in all three countries over the last four months. Weekly average selling prices of Flat Panel TVs at major retailers in December 2008 decreased by -14%, -13% and -8% in Hong Kong, Singapore and Taiwan respectively; compared to weekly average prices recorded in September 2008. This suggests that lower retail prices are a key factor behind the strong sales volumes of Flat Panel TVs reported by major electrical chain stores in recent weeks in the three countries.