Asian Consumers to Purchase More Than 22 Million Flat Panel Televisions in 2008

GfK Asia releases its 2007 Year End Pan Asian Consumer Electronics Data Summary, highlighting the trends in the region's consumer electronics sector. The report includes data from 13 countries overall, covering the following products: television; DVD player, recorder, and portable; audio home system and home theatre system; camcorder; MP3 digital portable audio player and MP4 portable digital video player.Television

Asian consumers buy more than 53 million televisions in 2007 in the 13 countries measured. Volumes are expected to increase to nearly 60 million televisions in 2008, driven by continued strong demand for flat panel televisions across the region. The market volume of flat panel televisions in Asia is forecast to reach 22 million sets in 2008, representing more than 1 in 3 televisions sold. "Flat panel televisions have reached mass market status in Asia," says Steven Kaiser, Commercial Director of Consumer Electronics, GfK Asia. "In the television category, seven out of ten dollars are spent on flat panel technology."

In Asia total, retail volumes for flat panel televisions measure 62 percent higher in the second half of 2007, as compared to the same time frame in the previous year. "Given that Asia was previously established in 2006 as a multi-billion dollar market for flat panel televisions, the growth rate in 2007 is very impressive," says Kaiser. "There is no denying we are now witness to one of the most successful consumer technology products in history."

In the flat panel television category, LCD TVs outsell plasma TVs 5 to 1 overall and register year-on-year unit growth rates above 60 percent. Retail sales of plasma TVs increase 37 percent on a unit basis during the second half of 2007 compared to one year earlier. "In particular, 32 inch plasma TVs post strong sales gains in China," says Kaiser. "The recent spike in plasma TV sales should continue in 2008, as more brands market 32 inch screens to consumers."

The average retail price of a flat panel television in Asia registers above $1200 in 2007, and could dip below $1100 in 2008. Says Kaiser, "Retail prices all across Asia for flat panel televisions continue to fall, even as the manufacturers improve the technology offer and Asian consumers increasingly opt for larger screen sizes. However, some signs suggest that the supply side is tightening; this could slow the speed of price erosion considerably, especially if paired with a surge in demand."

The third quarter is historically measured in Asia as the slowest sales period for televisions. However, expectations are that third quarter demand for televisions in 2008 should be above historical norms for Asia, due to the Beijing 2008 Olympic Summer Games. "The Beijing Games will be broadcast live and in Asian prime time," says Kaiser. "As a result, we expect that the demand in Asia for flat panel televisions will be unseasonably strong in July and August, similar to a spike we measured during the 2006 FIFA World Cup."

DVD player, recorder, and portable

In 2008, the market size of DVD players across 12 countries in the Asian Region is forecast to stabilize, reaching 21 million units for the second consecutive year. The value of the DVD player market in Asia declines in 2007, as average retail prices for DVD players drop to $85. In Asia total, unit sales increase for both DVD recorders and DVD portable players in 2007, however, combined the two segments make up less than 10 percent of the DVD hardware market in Asia.

"We can say that the market for standard DVD players is saturated in Asia," says Kaiser. "Furthermore, average prices for tabletop DVD players are now in the commodity range, considerably below $100. What remains to be seen is whether or not next generation, high definition DVD technologies such as Blu-ray Disc can excite the market. If consumer adoption of Blu-ray Disc technology gains pace in 2008, it could be a centerpiece to build around for both audio product and video product manufacturers, keeping in mind that Blu- ray Disc offers the consumer measurably higher sound and video quality, as compared to standard DVD or CD playback."

Home theatre system

Across the 12 Asian countries measured, the market for home theatre systems reaches 1 million units in 2007, with volumes up 17 percent in the second half of 2007 as compared the same period one year ago.

"The growth in the flat panel television segment in Asia is also reflected in the stronger sales of 'surround sound' home theatre systems," says Kaiser. "In Asia total, we expect 2008 will be another year of double-digit growth rates for home theatre systems."