Distributors: Price Drops Will Drive Large-Screen TV Sales - Twice

Distributors: Price Drops Will Drive Large-Screen TV Sales

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TWICE:

How promotional will TVs be in Q4? Which features, sizes or configurations will drive sales?

Jerry Satoren, DSI Systems:

As usual, the TV category will be very promotional in Q4. I don’t believe that it will be any more or any less promotional than any other year. Yes, we are hearing that many panel manufacturers have cut production and there is some concern over TV supply in Q4. However, I don’t feel this will curtail the promotional agenda of our industry at all. Retailers have metrics to hit and will battle as always to get there.

With that being said, TVs 42-inch and below offered at “extreme” values will do very, very well. I am also excited about the Q4 prospects for TVs 60-inches and above. America likes big and we will see large flat-panel retail pricing hitting sweet spots that are going to make this segment even more robust than it is now.

Dennis Holzer, PowerHouse Alliance:

I believe the TV category will be split into two distinct segments, promotional price point and premium highend, with no middle. Promotional price points on tier-one brands for 32-, 40-, 52- and 55-inch TVs will continue and drive the business. High-end, larger sizes such as 60- and 70-inches and above models which are wireless/Internet ready with all the widgets will also do very well, and provide higher profit margins for a change.

Because higher-end units are also 3D by default, 3D sales will be better than they have been to date, which will also drive some additional accessory sales.

Fred Towns, New Age Electronics:

The TV category will be quite promotional as price points continue to come down. When consumers migrated to high-definition flat screen TVs a couple years ago, they really only considered price. Now there are better sets with more robust features, like IP and 3D, which give retailers another opportunity to sell consultatively, showing consumers why these features are beneficial. For example, the sports enthusiast will want a TV with a fast refresh rate to keep up with the intense speed of the game. With most sports being broadcast in HD, the better picture clarity will enhance their experience even more.

Bill Stewart, Petra Industries:

We think there will be big promotions on LCD TVs as suppliers offer promotional pricing and retailers begin to clear the floor to make room for LED TVs, which are quickly becoming the standard. The sweet spots for sizes will be 32- to 46-inch displays and the features consumers will continue to seek are Wi-Fi capability, thinness and a 240Hz refresh rate.

Warren Chaiken, Almo:

The TV category will be very promotional this season, particularly for featurerich tier-one manufacturer offerings. We are already seeing strong instant rebate offerings as well as aggressive bundles which are being used to attempt to entice the consumer up-market to IP and 3D TV.

We are seeing a shift in business to larger screen sizes as their prices come down. Size is currently outweighing features. Given a choice between a feature-laden 46- to 52-inch TV and a high quality yet basic 60- to 70-inch TV, the customer appears is opting for the larger size.

Michael Flink, ADI Americas:

The television category will be very promotional in Q4. Manufacturers have been taking a strong look at minimum advertised pricing and are starting to develop processes to return profitability to dealers. Features like 3D and Internet-enabled TV will be very popular, and screen sizes of 50 inches and above will drive sales.

Tim Coakley, Ingram Micro Consumer Electronics:

Sales will be value driven. There will be aggressive promotions from the major players but the majority of additional sales will come from more efficient production practices by TV factories. There will be new panel sizes that deviate from the norm but they will offer cost effective, feature rich, slim and very attractive units.

Manufacturers will provide new, more productive and simplified ways to connect your TV to your home network and all of the expanding content made available through the net and especially through content streaming apps. 3D will continue to drive sales as the technology gets better and as more 3D content is provided.

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