ASEAN KEY DESTINATIONS
Almost three-quarter of flat panel TVs sold in Vietnam today is an LED TV: GfK Vietnam
Strong price erosion fuelled LED TV demand by almost three fold last year
22 February, 2013, HO CHI MINH – LED TVs are readily being adopted and growing in prevalence in Vietnam. Rising awareness and technological sophistication of consumers in the developing market have been heightening demand for this TV type, which sold over 730,000 units in 2012, representing a 176 percent surge in volume sales compared to the previous year.
Findings from GfK retail audit showed the LED TV segment in Vietnam commencing the year with less than 20 percent volume share of the overall TV market in January, and had consistently trended upwards in subsequent months to reach 66 percent by year end. This reflects an annual average of 37 percent in 2012—a substantial increment from the previous year’s 11 percent.
“GfK reporting depicted some decline in general TV sales last year due largely to slower economic growth which led to more cautious spending by consumers in the country,” highlighted Van Tran Khoa, Managing Director of GfK Vietnam. “However, when we zoom into specific segments, LED TVs outperformed basic LCD, plasma and CRT TVs and was the only segment which managed to achieve exponential spike in sales.”
One of the key reasons for buyers choosing this more advanced TV technology is its lowering prices which makes it increasingly affordable. The average LED TV price in 2012 dropped significantly by over a third of what it used to be in 2011—from USD805 to USD513. Basic LCD also registered price erosion but to a lesser extent while plasma is the only segment which saw a marginal price increase. It is the most expensive segment currently due to the fact that only larger screen sizes of 42” and above are available.
Another market dynamic swaying consumers towards purchasing LED TVs is the growing number of brands and models that are offered in the country. While basic LCD and plasma TV manufacturers are narrowing down their range compared to a year ago, LED TVs on the other hand saw an increase in number of brands and models. Last December, 267 models spanning 13 brands of LED TVs existed in the local market, as compared 10 brands and 158 models a year ago.
“The lackluster sales performance of the total TV market in 2012 presents hope for the year ahead, which is anticipated to achieve positive growth,” commented Van. “As the price erosion trend persists, LED TVs will appear increasingly attractive to consumers, making it the sole propeller of the TV market. We foresee this segment to fully replace that of conventional LCD and plasma TVs in the country in the very near future,” Van concluded.
GfK is one of the world’s largest research companies, with more than 12,000 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 2011, GfK’s sales amounted to EUR 1.37 billion.
To find out more, visit www.gfk.com/us or follow GfK on Twitter: https://twitter.com/GfK_en.
- Survey period: Jan – Dec 2012
- Comparison period: Jan – Dec 2012 VS Jan – Dec 2011
Manager I PR & Communications
GfK Asia Pte Ltd | One George Street #22-02 | Singapore 049145
T +65 6826 8622 | M: +65 9385 0222
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