Retail Observer

RETAILOBSERVER.COM JUNE 2014 54 I n the fourth quarter of last year, TV sales plummeted nine percent over the same period in 2012, a recent study from IHS Technology reported. The market research firm went on to say that US TV unit shipments declined sharply from 37.5 million units in 2012 to 34 million units in 2013. "The TV market in the United States has reached a point of saturation following a period of huge growth in years past, especially as the flat- panel-TV craze set in," says Veronica Gonzalez-Thayer, IHS TV systems analyst. "As a result of the market's maturity, and also because of lingering uncertainties in the economy, American consumers have been less eager to rush out and buy new replacement TV sets." Of course, the increased trend of consumer use of portable devices to watch TV is also a contributing factor. Take, for example the potential decline in smaller dorm-room TV sets due to the fact that college kids can watch virtually anything they want on their iPads or Android tablets, and are very savvy at doing so. Appliance and independent specialty AV retailers, therefore, need to look to more unique sets to see the opportunity in TV sales, whether it is with larger sets, step-up image quality, unique design features, or a combination of all of the above. Increasingly, BrandSource appliance retailers are embracing TV sales at larger sizes—something our specialty AV retailers have been doing for the last several years. Looking forward, higher ASPs should allow the TV category to grow after years of decline. With current models in transition right now, most of this growth will be seen in the third and fourth quarters. While Sharp has pretty much cornered the large TV market with 70-, 80-, and 90-inch models over the last few years, Samsung, the market leader in other sizes, began a more aggressive stance on larger sets in 2013. The company's premium UNHU9000 series, for example, will feature curved-screen LED LCD panels with edge-lit local dimming, with the 78-inch model going for $8K, available later this year. Samsung is betting that the improved performance and added style resulting from the curve will be a double whammy that will get consumers into stores to buy. Of course, the great thing about 4K Ultra HD technology, which is four times the resolution of HDTV, is that it allows audience members to sit much closer to the TV than with traditional HDTV. This is important because people that purchased a smaller set based on HDTV seating distance guidelines can now upgrade to a larger set without seeing pixel structure—same room, same seating distance (or closer), bigger TV. What's not to love about that? It's a built-in opportunity to upgrade based on size alone, and that's not even considering the dazzling image quality 4K sets have to offer, which is an easy selling point if retailers provide a proper demo. For consumers not wanting to take the 4K plunge, but looking for a step-up in quality, Sharp's AQUOS Quattron+ (Q+) series of TVs are the highest resolution full HDTVs available today, featuring built-in upscaling and Sharp's Quattron panel and Revelation technology. This technology divides each pixel, creating two pixels from one to deliver 16 million subpixels and therefore giving the viewer a near-4K experience. Sharp's Q+ TVs range from $3K (60) to $6K (80). This technology looks almost as good as the real 4K deal, but at more reasonable prices. LG is another manufacturer to watch, with 79-, 84-, and even 98-inch 4K TVs, with a super-slim 77-inch OLED 4K TV coming later this year. Design features like a curve or slim profile, performance features like increased resolution (whether it be 4K Ultra HD or a step up from high def), bigger sizes, and the ability to sit closer to the screen than ever are all very attractive. Provided they are getting something new, exciting, and better consumers are willing to make the upgrade. It's the onus of the retailer to convince them that 'new, exciting, and better' is exactly what they are getting. RO Jim Ristow Consumer Electronics Trends NEXT-LEVEL TV Why TV sales at bigger sizes, better resolution, and with unique design features are the sweet spot for appliance and electronics retailers Jim Ristow is the executive vice president of consumer electronics for BrandSource, helping to establish it as one of the largest and most influential CE merchandising groups in the United States.

• Cover