Trend of size of TVs getting greater is accelerating in South Korea as percentage of 50-inch or greater TVs in South Korea’s TV markets has surpassed 50%. Although this trend is happening globally as well, it is happening at a much faster rate in South Korean markets. It seems that South Korean markets’ characteristics on having high demands for new products with high specifications have been applied to this trend.
According to a market research company called GFK on the 2nd, percentage of 50-inch or greater TVs based on the amount of sales in South Korea’s TV markets in 2016 surpassed 50% for the first time.
If the range becomes wider to 45-inch or greater, the percentage is at 74%. Percentage of 45-inch or greater TVs is increasing at a fast rate from 61.4% in 2014, 68.1% in 2015, to 74% in 2016.
Based on number of sales, percentages of 50-inch or greater TVs and 45-inch or greater TVs recorded 26.3% and 40.5% respectively. Based on number of sales, TVs with sizes between 32 inches and 39 inches were sold the most at 27.8%. However percentage of amount of sales for TVs with sizes between 32 inches and 39 inches was only 10.5%.
Although percentage of number of sales for TVs with sizes between 52 inches and 60 inches was only 19.7%, percentage of amount of sales for these TVs was almost doubled at 37% as large TVs and smaller TVs have become polarized to premium products and inexpensive products respectively.
Reason why many global TV manufacturers such as Samsung Electronics, LG Electronics, and SONY are focusing on large premium TVs is due to high price and profitability. Although number of sales is high for smaller TVs, they have low profitability due to low amount of sales. In markets for small and medium TVs, South Korea’s small and medium companies are having fierce competitions with Chinese manufacturers. At this point, it is important to have high market shares in markets for large TVs in order to have high profitability.
Global TV markets are also showing a trend where sizes of TVs are becoming bigger. A market research company called IHS estimated percentage of 45-inch or greater TVs in global TV markets to be 62.4%. It is predicting that this percentage will rise to 64.5% in this year and reach 66.4% in 2020.
Although sizes of TVs are becoming bigger globally, this trend is happening at a much faster rate in South Korea. Even when a market research company considers other factors, difference in percentages of amount of sales for 45-inch or greater TVs between South Korea (74%) and other countries (62.4%) is 11.6%.
“Because people tend to use TVs for at least 5 years when they purchase one, people tend to buy the latest TVs when they purchase one.” said a representative for a TV manufacturer. “Especially consumers in South Korea demand more of large TVs and new products more than consumers in other countries.” This representative also added by saying that characteristics of consumers in South Korea that prefer latest products in electronics and IT devices have been directly applied to this current.”
Staff Reporter Kwon, Keonho | firstname.lastname@example.org
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