Photo - Selinna Chin, MD, GfK Malaysia
According to market research firm GfK, Malaysia's TV market has shown a significant surge in flat panel TV adoption in recent years with many Malaysians replacing their older CRT TV models to the tune of 823,000 sets of TV worth more than US$440 million in January to August this year.
GfK Malaysia managing director Selinna Chin said the switchover in the local market to flat panel TVs is almost complete as the rapid growth in volume sales has slowed from last year's 27 percent. "However, the latest indication is that Malaysian consumers are buying bigger-sized and more technologically advanced TV sets such as those equipped with Internet-connectivity or 3D function-the main reason for the slight increment in average TV price from US$527 last year to US$530 this year."
"In recent years, flat TV sales penetration has been deepening in Malaysia as more and more households have been replacing their traditional CRT TV sets with the newer flat panel technology," said Chin. "Even though demand has slowed down, the local TV market continues to remain robust as consumers are now focusing on upgrading their flat panel box to more expensive models that are bigger or come with the latest technology."
She said the latest findings show that US$171 million generated from sales of TVs with screen size measuring 46 inch and above contributed to 39 percent of total TV sales-reflecting a surge of 32 percent compared to last year. "Average price of this segment declined from last year's US$1,335 to US$1,200 this year as competition intensifies along with the expansion in repertoire of available models from 234 to 288."
"While the price of smaller screen sized TVs (32 inch and below) has more or less remained unchanged, cost of those bigger screen TVs has been declining considerably," said Chin. "At the same time, these models are also enhanced with Internet connectivity and 3D technology, making them even more appealing to buyers."
Proliferation of the Internet, 3D TV
She added that "the proliferation of the Internet in the country has been spurring demand of Internet-content TVs. Major manufacturers have been actively pushing the technology in the market with widening spread of models from approximately 110 at the end of last year to 180 currently."
Internet-content TV's 43 percent double-digit sales value surge has already generated US$154 million this year. On average 18,000 units are being snapped up this year compared to 12,000 units in 2012, Chin said.
"The other popular technology currently receiving much attention and exhibiting a gradual but consistent increase in take-up is 3D-TV," she said. "Since the beginning of the year, sales have been on an uptrend with almost one in 10 (9 percent) TV sets sold this year being a 3D model. This year, the segment has already contributed almost a quarter (24 percent) of total TV sales at US$105 million."
"One of the key factors expected to continue injecting much buzz in the TV market in Malaysia is the government's announcement of the expected first roll-out of digital video broadcasting television (DVBT) to be in early 2014 while full nationwide coverage is targeted by end-2015," said Chin. "This, along with the continued interest in new innovations in TV technologies will carry on stimulating the market and driving its vibrancy."
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