Results of GfK Weekly Monitor PTV/Flat Romania for June 2010
60% increase for the LCD market in June 2010
Results of GfK Weekly Monitor PTV/Flat Romania for June 2010
Bucharest, August 18, 2010 – The last week before the VAT increase, the most remarkable raise in sales for the entire 2010
In the second quarter of 2010 both retailers and manufacturers took advantage of the recent events - such as FIFA World Cup and increase of VAT to 24% - managing once again to boost the sales. Seen at a global market level, the increase of 1,3% is not spectacular, however it points out once again the success of promotional activities when it comes to TV products.
It is clearly that the televisions generate the most sales in the consumer electronics segment. Flat-screen technology has now established itself successfully not only at local level, but also global. Last year, 238 million TV sets were sold worldwide, and in its Digital World Report 2010, GfK Retail and Technology anticipates that 252 million televisions will be sold this year worldwide. The trend applies also on national level, it is expected that total sales of PTV this year will be slightly over the volume reached in 2009 by 5-10% growth rates. And it will not be only the growing segments boosting sales: such as televisions with LED technology, which consume little electricity while also offering improved picture quality or 3D technology, which although currently still in its early stage is offered by almost every notable television manufacturer, but also the positive demand of the consumer buying for the first time a Panel TV.
At a penetration rate slightly higher than 10% for Flat-screen technology and considering the rash decrease for old CRT TV, the Romanian Panel TV market has still a lot to offer in terms of growth. Currently the market is dominated by sales of smaller and medium screen sizes models; the 26 inch and 32 inch products are fitting the best the modest budget of the Romanian TV consumer and are therefore heavily promoted on the market.
In this perspective, the World Cup effect is a good example. On a background of political uncertainty, pessimistic economical sentiment and significantly lower promotions than two years ago, the impact on sales of the World Cup June 2010 was not as high as the impact of UEFA Football Championship June 2008. However, the first four weeks of the World Cup did not only bring "bargain” prices for the 32 inch models but also associated with it a boost in sales. Overall, for the LCD market the performance in June 2010 rose by 60% when compared with the same period of the previous year.
The peak was reached in week 27, representing the last week before the VAT increase. The news about VAT return rates to 24% and consequently price increase drove the public opinion into adopting an immediate purchasing behaviour. This indicates once again that although the demand is present on the market, the recessionist economical conditions forced the consumer to delay all important purchases. It also points out the Romanian consumer’s sensitivity towards certain types of stimulus which refers to their preference for promotions, bargains and "value for money” products.
Paradoxically, the weeks after the VAT increase did not immediately bring higher prices on shelves, demonstrating that the impact of this economical measure at this level is not considerable and should not inhibit very much further purchases on the TV market.
The survey
GfK Weekly Monitor, Romania GfK's Weekly Monitor measures actual sales from retailers to final consumers (selling out), shop by shop, product by product. GfK’s weekly sample is composed of several hundred outlets from consumer channels. The leading retailers of the distribution channels are covered. GfK Weekly Monitor PTV/FLAT is a leaderpanel based on 209 shops, which provide data every week.
The GfK Group
The GfK Group is the No. 4 market research organization worldwide. Its activities cover the three business sectors of Custom Research, Retail and Technology and Media. The Group has 115 companies covering over 100 countries. Of around 10,000 employees, over 80% are based outside Germany. For further information, visit our website: www.gfk.com.
