World Cup spikes up TV sales

Singapore LED TV sales surge as the FIFA World Cup continues to drive Asians to buy better TV sets.

A GfK report said LED TV sales in Singapore boost, especially 40 and 42 inch screen sizes, following the announcement that Singapore’s local cable TV operator had secured the broadcast rights to the World Cup and will be screening the matches in high definition.

Every four years, it is not only football fans who eagerly anticipate the coming of the FIFA World Cup. As the most widely viewed sporting event in the world, television manufacturers and retailers globally are also expecting the tournament to significantly boost TV sales. In the first week of June alone, combined sales of high definition (HD) and full high definition (FHD) TV in eight Asian markets—Hong Kong, Indonesia, Thailand, Malaysia, Singapore, Korea, Taiwan, and Vietnam reached almost 90,000 units, hitting a total value in access of USD73 million. This reflects a massive growth of 249 and 156 percent in unit and value growth respectively when compared to the same period last year, according to a GfK Asia report.

In terms of TV resolution and screen sizes, FHD TV proved to be slightly more popular, while 30-45 inch screens were the most common sizes snapped up by consumers, making up 71 percent of the overall TV sets sold.

“The World Cup is a global phenomenon that attracts a lot of television audience all over the world. While consumer responses differ across different countries, there is an apparent common demand for better viewing pleasure,” commented Ms Jasmine Lim, Regional Account Director for Consumer Electronics at GfK Asia. “Fans wanting in on a closer and better view of the World Cup actions are more willing to invest, and are likely to take this opportunity to upgrade their box to bigger screen sized ones, and in full HD, as evident from our latest GfK Asia retail audit report.”

Findings from GfK Asia reveal a consistent upward surge in TV sales in Asia several weeks before the kick-off of the World Cup season, and hitting its peak the week just before the start of the tournament.

“When we make comparisons across countries, it is interesting to also note that some nationalities are much more fervent about World Cup, as reflected in the growth spurt of TV unit sales as the date of the World Cup drew nearer. This trend is particularly obvious in countries such as Malaysia, Singapore, Thailand, Vietnam, and South Korea,” said Lim.

“TV sales started increasing across Asia as early as the beginning of this year, as brand manufacturers started cashing in on the World Cup euphoria to launch new products such as 3D TV, while retailers cash in on the excitement surrounding the sporting extravaganza by introducing attractive promotions aligned with the World Cup theme,” noted Ms Lim.

World Cup fever is proving to be a powerful driving force behind the sales of TV. Year to date (Wk 1 – Wk 23 2010), TV sales have grown by over 86 percent compared to the same period (Wk 1 – Wk 23) last year. “Thanks to this long awaited, most watched sporting extravaganza, it is certain that 2010 will be a fantastic growth year for TV,” concluded Ms Lim.