The global pandemic is to remain a drag on TVs sales
Global sales of TVs are expected to fall by around 4% in 2020 compared to 2019, reaching 220 million units. The fall is primarily linked to the coronavirus outbreak across the world. Major consumer electronics outlets in major markets have been closed as they fall under the nonessential products category. Meanwhile, several TV manufacturers also halted their production, adding more pressure on the supply chain.
The television sales have also been under pressure due to the postponement of major sporting events, for instance, the Tokyo Olympic Games and the UEFA European Championship.
On the contrary, where people are confined to their homes and kids are homeschooled, news and entertainment industries have been thriving. Moreover, virtual reality games, multiplayer games and Kinect sports are reeling, which is accelerating TV usage. Such unprecedented situation would increase the wear and tear of TVs and would lead to a large scale replacement soon.
Having said that, tablets, smartphones, computers are some other great alternatives for streaming videos and video games, which may relax pressure on TVs usage to a certain extent.
KnowTraces, a part of Commodity Inside, expects that online sales would see some additional growth due to limited access to the physical retail market. However, some customers would not risk the money by buying online unless they are fully confident about their purchases. Virtual reality and online demonstration can underpin sales, but it can be hard to convince traditional customers.
In developing markets, such as Africa and Asia, sales volumes would fall relatively less than developed markets due to lax lockdown rules. However, the economic slowdown will see a drag on the disposable income, which would push buyers towards basic models.
KnowTraces expects more discounted prices as well as the launch of more low-cost models in the future to stimulate sales. There is already anecdotal evidence that buyers are favouring basic models over more expensive sets, whereas sales of 42in TVs or small screen sizes are performing better.
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