Full steam ahead for flat-TVs in UK

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“Huge opportunities exist not just in UK homes still requiring conversion, but also in the many millions of homes with secondary or tertiary sets that do not yet receive a digital signal,” says a report from retail research specialist GfK.
GfK says it is “full steam ahead” for sales of flat-panel TVs in the UK. In the three months to the end of February, almost 3m flat-panel TV sets were sold, a record and up half-a-million on the same period a year ago. GfK admits the overall sales value of the sets continues to fall as prices tumble.

But GfK says sales volumes can only go up. “We are on the cusp of the first major regional switchover starting (November 2008). Whilst the vast majority of homes now receive a digital signal in one form or another, this only touches the surface in terms of converted equipment,” say GfK.

“Huge opportunities exist not just in homes still requiring conversion, but also in the many millions of homes with secondary or tertiary sets that do not yet receive a digital signal. Becoming acquainted with the various solutions available for people wishing to convert or replace secondary equipment (either TV or recording equipment) will be the key to maximising these sales opportunities. And more than ever, the switchover presents an opportunity for real engagement with the consumer on the options available to them. Both store staff and web material will have a part to play in this.”

“There are also several key areas within A/V that warrant a closer look in the short term. Home Theatre Systems have seen a return to strong sales growth in recent months, with value sales in the last quarter up a fifth on the same period last year. Helping this growth is the sheer size of the installed base of Flat Panel TV now, and the many owners who could potentially be looking to upgrade their audio equipment,” adds GfK.

In the past three months, 20 TVs were sold for every Home Theatre System sold according to GfK figures. Compare that to DVD recorders, where eight TVs were sold for every recorder. Clearly, further opportunities exist here to trade the consumer up. However, one of the positive aspects to the current resurgence of Home Theatre is that it isn't coming at the expense of price – volume and value developments are broadly in line with each other.

“Positive short term developments can also be expected in the High-Definition DVD market. With the resolution of the well publicised format war, a clearer message now exists for the consumer to trade up. The number of HD-ready TVs already in homes is significant and given that terrestrial HD seems to be at least 18 months away at the earliest, the only option many will have to take advantage of their TVs capabilities is via Blu-Ray DVD. Increasing availability of hardware and software will be key to the development of this market,” says GfK.


Source: Rapid Tv News