Eletrolar News 134 – Premium TVs win the market

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More and more Brazilians are attentive to the novelties and technological advances. They prefer to spend more for attributes they value in a television, such as interactivity and connectivity. The most sophisticated segment advances.

by Leda Cavalcanti

The Brazilian market advances quickly to become premium. Televisions in this category, those with more than 65″, represented 2.7% of the units sold from January to October 2019. In the same months last year, this portion was 1.3%. Between the two periods, the growth of units sold reached 110%, as shown by a survey of research company GfK.

In revenues, between January and October 2019, premium TVs represented 8.23% of sales compared to 5.3% in the same period last year. This difference between the representativity in units and in value is due to the higher added value of the products and, therefore, to the higher average ticket, according to the GfK study. The market value of televisions over 65″ grew 56% between 2018 and 2019.

The product mix in this segment has also shown significant changes. Between January and October 2018, there were 113 different items on sale. In 2019, this number reached 150. However, the average ticket of the products went in the opposite direction. In 2019, the average price of a premium TV is BRL 5,119.99, which shows a decrease of 28% compared to last year.

In search of value

The demand for increasingly larger and higher value-added televisions is what is observed in retail. “In the past, the demand was for 32″ devices, then for 46″ devices, and now the 50″, 4K, have the largest share of the market. The consumer, as already demonstrated in the mobile phone category, prefers to invest a little more and receive better benefits. In this case, more technology in devices,” says João Rezende, product director of SEMP TCL.

In 2019, the TV market grew 1% compared to 2018, in the accumulated from January to September, according to data from Eletros, recalls Claudio Nadanovsky, manager of brown line products at Panasonic. “It was mainly driven by the 4K segment, in which the consumer looks for large screens, between 49″ and 60″. The greater access to broadband and the search for content by streaming influence the consumer to change their television for a smart one.”

The market of this category is viewed with confidence, emphasizes Pedro Valery, responsible for television products of LG Electronics of Brazil. “We see great potential in 2020, even more so as the 4K models are having an increase in sales since last year. We consider that, when the consumer understands the value of a certain product, he is willing to pay more to buy it.”

Interest in technology

Brazilians are often looking for quality solutions that optimize their daily lives, says Guilherme Campos, senior product manager for TV, audio and video of Samsung Brazil. “The TV has become the main device to gather friends and family, with new technologies that enable the connection between devices of different categories or that bring the facility to control everything with a single remote control.”

With the new technologies, the device has become an essential item in the life of Brazilians, says the general director of Philco, Cristiane Clausen. “It is possible to see that there is a search for the best product, and the premium category is the option for those who want all the advantages and features offered in the market. It is perfect for consumers who demand the best image quality, sound and technological differentials.”

The business potential is high in the country, comments Luís Vieira, head of marketing and communication at Sony Brazil. “Brazilian consumers are very receptive to Japanese technology. In recent years, we have noticed an expressive increase in the demand for 4K TVs and we believe that this trend should continue in the coming years. This format is in full expansion and meets very well the needs of those looking for screens up to 85″.”

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