Retail Observer

RETAILOBSERVER.COM MARCH 2015 54 Dave Workman Consumer Electronics Trends TV IN 2015: GREAT THINGS ARE HAPPENING IN TV SALES FOR THE INDEPENDENT SPECIALTY RETAILER 2 015 is not only poised to be one of the best years we've had in a long time economically, it is also the year in which 4K Ultra HD will make significant inroads in consumer mindshare, on retail store shelves, and in media rooms across the country. 4K Ultra HD is four times the resolution of traditional HDTV and has been ramping up slowly over the last couple of years. This year, however, presents a significant opportunity for the independent specialty retailer, who is uniquely suited to capitalize on premium 4K Ultra HD sales. We can look to the holidays as a microcosm for the sunny outlook of 4K Ultra HD this year, during which sales were strong across the board, helping the electronics industry achieve more than one million sets sold in 2014. 4K Ultra HD unit sales are expected to grow to 4.5 million units this year, with the main beneficiary being larger screen sizes 55 inches and up. 4K really does make the big screen experience come to life. Additionally, while content is still sparse, more choices are coming to fruition. 4K Ultra HD Blu-ray players are due from top manufacturers by the end of the year, and more and more streaming content choices from the likes of Netflix and Amazon are happening now. Major manufacturers have also teamed up with studios and content providers like DirecTV to form the UHD Alliance, which will hopefully help expedite UHD content to market. Of course, 4K Ultra HD is only part of the story in these premium sets. Samsung, LG, Sony, and others are touting new picture processing technology that expands the color gamut and contrast ratios, producing incredible picture quality—both on high-def and 4K Ultra HD content. Dark scenes are more detailed across the board, and a wider range of colors brings dimension and depth to images. These premium sets with enhanced color and contrast capabilities are still in their early stages—many just announced in January at the annual consumer electronics extravaganza, International CES. That makes 2015 primarily an early-adopter market, which should favor the independent specialty retailer in grabbing market share in this segment of the business. In terms of which sets to buy, brands seem to matter to the consumer looking to invest in a 4K Ultra HD set. There was some concern that tier three brands would undercut the market and force early price erosion, but consumers seem to be willing to spend the extra money to get a premium brand. Sets sized 65-85 inches will continue to become more affordable this year, which should increase the share of these screen sizes. Larger panels tend to be installed at a much higher percentage than those below 55 inches, meaning an increased opportunity for the independent retailer to acquire the sale. With the uptick in the economy and premium sets presenting a prime opportunity, the specialty AV retailer stands to have a great 2015. For the first time in the past six or seven years, TV sales might actually do something positive for this group of retailers. That is, if they seize the 4K Ultra HD opportunity with both hands. Dave Workman President, ProSource Buying Group RO

• Cover