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TV Sales in Japan Hit New High

The GfK Group announced that sales of flat-panel TVs in Japan during the second week of November (8-14) increased by almost 600% compared with the same period a year earlier.

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Unedited press release follows:

Record-breaking Sales for Japan TV Market

Historic boost ahead of digital switchover next July sees sales rise six-fold

16/11/201 – Sales of flat-panel TVs at electronics stores during the second week of November (8th-14th) increased by almost 600% compared with the same period a year earlier, as consumers rushed to the stores to beat the cut-down of the government’s subsidy program for the purchase of eco-friendly home appliances.

After the government’s announcement on 8th October that the ‘Eco Points Subsidy’* will be halved in December, the demand for flat-panel TVs has been showing a rapid upward surge week on week. Unit sales of flat- panel TVs in October already jumped as much as 2.5 times compared to the same period of the previous year, and last week finally reached an astonishing six-fold increase.

Behind this extraordinary growth has been the huge potential replacement demand for digital TV’s, which was triggered by the transition from analogue to digital terrestrial broadcasting scheduled for July 2011. Furthermore, there is the very recent event in Japan which has seen another government subsidy program (purchasing eco-friendly cars) closed out earlier than scheduled due to dwindling budgets, prompting consumers to buy flat-panel TVs sooner rather than later in order to avoid the same misfortune.

This outrageous boost is expected to reach its highest peak toward the end of November 2010, tailing off by the end of March 2011 when the Eco Point Program finally finishes.

“In November, flat-panel TV market will see a record-high increase which we have never experienced before,” said Yoshi Fujibayashi, the chief analyst of GfK Marketing Services Japan. “Thereafter we expect total annual sales of flat-panel TV to exceed 24 million in units, up more than 10 million from 2009. This represents a level approximately 2.4 times higher than in previous years.”

“In 2011, the flat-panel TV market will see a backlash in volume sales from the extraordinary surge in 2010,” Fujibayashi continued. “However, we expect that replacement demands for second or third TVs along with the prevalence of 3D and Internet TV will certainly be attractive factors to stimulate further consumer spending. This should help the 2011 TV market remain positive and ahead of the years prior to the huge increase seen in 2010.”

*The Eco Point Program has been implemented by three Japanese ministries to promote the purchase of “Green” electric home appliances as part of measures against global warming, to revamp local economies and spread the use of T-DMB (Terrestrial digital media broadcasting) TVs. Depending on the type of energy-conservation measures applied, users can receive eco-points, which can be used for additional renovations or exchanged for gift certificates or local specialties. Products include televisions, refrigerators, and air-conditioners.

GfK at CES 2011
Date: 06 – 09 January 2011
Place: Las Vegas Convention Centre, USA
GfK Markets: Consumer Electronics, Imaging/ Photo, IT, Telecom
GfK Booth: South Hall 3, 30366

For information on all GfK activities at CES 2011 please ask a representative at the GfK booth or visit GfK at 2011 International CES.

The GfK Group
The GfK Group offers the fundamental knowledge that industry, retailers, services companies and the media need to make market decisions. It delivers a comprehensive range of information and consultancy services in the three business sectors Custom Research, Retail and Technology and Media. The No. 4 market research organization worldwide operates in more than 100 countries and employs over 10,000 staff. In 2009, the GfK Group’s sales amounted to EUR 1.16 billion.