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Emerging markets to drive new TV purchases

Posted: 30 Jul 2012 ?? ?Print Version ?Bookmark and Share

Keywords:DisplaySearch? emerging market? TV market? LCD? CRT?

According to NPD DisplaySearch, more than 40 percent of consumers in emerging markets such as Russia, Turkey, China, India, Indonesia, Brazil and Mexico are going to drive the next round of demand of TV in the next 12 months. Declining prices, increased brand promotions and an on-going replacement cycle are the main reasons for increasing demand in these countries, added the market research firm.

Drivers for planned purchases differed for emerging markets versus mature markets such as the U.S., Japan, Germany, France, Italy and the U.K.

"The desire to have a flat panel TV, good picture quality and more affordable prices are cited as the top three reasons for planned purchases in mature markets," said Riddhi Patel, research director, consumer insights for NPD DisplaySearch. "For emerging markets, the primary reasons driving planned purchases are picture quality, sound quality and a strong warranty/service plan. These results show the influence of financial status and living standards in consumer mindset when it comes to TV purchases."

The technology mix of existing TVs in households is strikingly different between the emerging and mature markets. This may be due to lower spending power in emerging markets. The emerging market technology mix is dominated by CRTs (53 percent), but LCD TVs dominate in mature markets where 54 percent of TVs are LCD. Plasma has a small presence of seven percent in mature and six percent in emerging markets and rear projection makes up for a negligible portion of the existing installed-TV base.

NPD also found that households in mature markets own an average of 2.4 TVs each, and in emerging markets, the average is 1.8 TVs per household. More than two-thirds of households in mature markets have more than one TV set, but nearly half of the households in emerging markets have only one TV. Like mature markets, consumers in emerging markets are increasingly replacing their existing legacy sets with flat panels (mainly LCD TVs) because of increased availability and consumer desire for better quality, larger screen, high definition TV sets.

TCL Smart TV name

Figure 1: Average TVs per Household in 2012.
Source: NPD DisplaySearch Global TV Replacement Study

"Because many households in emerging markets have only one TV but multiple generations living under one roof, mobile device penetration in these markets is high, which enables consumers to access content in other ways," added Patel.

Usage of Additional Devices

Figure 1: 2012 Usage of Additional Devices for Viewing TV/Video Content.
Source: NPD DisplaySearch Global TV Replacement Study

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