ASEAN KEY DESTINATIONS
Consumers in Malaysia are buying bigger sized and more technologically advanced TV sets: GfK
Smart TVs and 3D TVs surged in demand by 43 and 31 percent; over 1 in 10 TV sold is 46 inch and above
Malaysia’s TV market has developed substantially with significant surge in flat panel TV adoption over the recent years to replace the old fashioned CRT TV in many households. According to GfK retail audit reports, consumers in the country bought nearly 823,000 sets of TV worth over USD440 million in January to August this year.
As the market in Malaysia nearly complete its switchover to flat panel TV, the rapid growth in volume sales has slowed down considerably from last year’s 27 percent to depict a tapering off. From just a regular flat panel model, the latest inclination among Malaysian consumers is to buy bigger sized and more technologically advanced TV sets such as those which are equipped with Internet-connectivity or 3D function—the main reason for the slight increment in average TV price from USD 527 last year to USD 530 this year.
“In recent years, flat TV sales penetration has been deepening in Malaysia as more and more household have been replacing their traditional CRT TV sets with the newer flat panel technology,” highlighted Selinna Chin, Managing Director of GfK in Malaysia. “Even though demand has slowed down, the local TV market continues to remain robust as consumers are now focusing on upgrading their flat panel box to more expensive models that are bigger or comes with the latest technology.”
GfK findings revealed that the USD 171 million generated from sales of TVs with screen size measuring 46 inch and above contributed to 39 percent of total TV sales—reflecting a surge of 32 percent compared to last year. Average price of this segment declined from last year’s USD1,335 to USD1,200 this year as competition intensifies along with the expansion in repertoire of available models from 234 to 288.
“While the price of smaller screen sized TVs (32 inch and below) has more or less remained unchanged, cost of those bigger screen TVs has been declining considerably,” said Chin. “At the same time, these models are also enhanced with Internet connectivity and 3D technology, making them even more appealing to buyers.”
The proliferation of the Internet in the country has been spurring demand of Internet-content TVs. Major manufacturers have been actively pushing the technology in the market with widening spread of models from approximately 110 at the end of last year to 180 currently. Internet-content TV’s 43 percent double-digit sales value surge has already generated USD154 million this year. On average 18,000 units are being snapped up this year compared to 12,000 units in 2012.
The other popular technology currently receiving much attention and exhibiting a gradual but consistent increase in take-up is 3D-TV. Since the beginning of the year, sales have been on an uptrend with almost one in ten (9%) TV sets sold this year being a 3D model. This year, the segment has already contributed almost a quarter (24%) of total TV sales at USD 105 million.
“One of the key factors expected to continue injecting much buzz in the TV market in Malaysia is the government’s announcement of the expected first roll-out of digital video broadcasting television (DVBT) to be in early 2014 while full nationwide coverage is targeted to be by end 2015,” commented Chin. “This, along with the continued interest in new innovations in TV technologies will carry on stimulating the market and driving its vibrancy,” she concluded.
GfK is one of the world’s largest research companies, around 13,000 experts working to discover new insights into the way people live, think and shop, in over 100 markets, every day. GfK is constantly innovating and using the latest technologies and the smartest methodologies to give its clients the clearest understanding of the most important people in the world: their customers. In 2012, GfK’s sales amounted to €1.51 billion.
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