World Cup Fever Propels Asian Consumers to Purchase Bigger and Better TV Sets

05 July 2010, Consumer Electronics

Nearly 90,000 TV sets worth over US$73 Million snapped up in the final week leading up to the highly-anticipated global sporting event.

Every four years, it is not only football fans who eagerly anticipate the coming of the FIFA World Cup. As the most widely viewed sporting event in the world, television manufacturers and retailers around the globe expect the tournament to significantly boost TV sales. In the first week of June (wk 23) alone, combined sales of high definition (HD) and full high definition (FHD) TV in eight Asian markets—Hong Kong, Indonesia, Thailand, Malaysia, Singapore, Korea, Taiwan, and Vietnam reached almost 90,000 units, equal to a total value in excess of US$73 million. This represents massive growth of 249% and 156% in unit and value growth respectively when compared to the same period (wk 23 09) last year.

In terms of TV resolution and screen sizes, FHD TV proved to be slightly more popular, while 30-45 inch screens were the most common sizes snapped up by consumers, accounting for 71% of the overall TV sets sold.

"The World Cup is a global phenomenon that attracts an enormous television audience all over the world. While consumer responses differ across different countries, there is a very apparent common demand for enhancing their viewing pleasure", commented Ms Jasmine Lim, Regional Account Director for Consumer Electronics for GfK Asia. "Fans wanting a closer and better view of the World Cup actions are more willing to invest, and are likely to take this opportunity to upgrade their box to bigger screen sizes, and in full HD, as evident from the latest GfK Asia retail audit report."

Findings from GfK Asia reveal a consistent upward surge in TV sales in Asia several weeks before the World Cup kick-off, hitting its peak the week prior to the tournament commencing.  "When we make comparisons across countries, it is also interesting to note that some nations are much more fervent about the World Cup, as reflected in the growth spurt of TV unit sales as the date of the World Cup drew nearer. This trend is particularly obvious in countries such as Malaysia, Singapore, Thailand, Vietnam, and South Korea", commented Ms Lim. "World Cup fever was especially intense in South Korea for example. From its lowest point ten weeks before the start of the tournament where just over 22,000 units of TV were sold, we saw weekly TV sales scaling upwards quite swiftly, jumping almost two-fold to hit nearly 41,000 units in the week prior to World Cup kick-off!" observed Ms Lim.

In Singapore, GfK findings saw an increase in sales of LED TVs, particularly of 40 and 42 inch screen sizes, following the announcement that Singapore's local cable TV operator had secured the broadcast rights to the World Cup and would be screening the matches in high definition.

"TV sales started increasing across Asia as early as the beginning of this year, as brand manufacturers started cashing in on the World Cup euphoria to launch new products such as 3DTV. Retailers then capitalize on the excitement surrounding the sporting extravaganza by introducing attractive promotions aligned with the World Cup theme", noted Ms Lim.

World Cup fever is proving to be a powerful driving force behind the sales of TV. Year to date (wk 1 – wk 23 2010), TV sales have grown by over 86% compared to the same period (wk 1 - wk 23) last year. "Thanks to this long awaited sporting extravaganza, it is certain that 2010 will be a fantastic growth year for TV", concluded Ms Lim.