Premium market growth is solid despite shrinking demand… Targeting the demand for extra-large TVs
The domestic home appliance industry, which is suffering from the global economic downturn and shrinking TV demand, is competing with a premium strategy with a premium strategy ahead of the 2022 World Cup in Qatar.
Ahead of the year-end shopping season leading to the World Cup, Black Friday, and Christmas, the strategy is to significantly strengthen the lineup of ultra-large premium TVs and overcome the barley hill.
◇ Samsung Electronics and LG Electronics’ earnings deteriorated… ‘Halro’ as a premium product in the 4th quarter
According to industry sources on the 17th, Samsung Electronics and LG Electronics received sluggish performance reports in the third quarter of this year, with their operating profit below the consensus (average earnings forecast).
Although detailed performance by division was not released, the common assessment of securities firms is that the performance deteriorated due to continued sluggish TV sales.
This is because market demand has decreased as the corona virus has disappeared and consumer sentiment has contracted due to the economic slowdown.
Profitability also seems to have deteriorated due to rising raw material prices.
However, it is analyzed that demand for premium products is relatively strong despite various adverse factors.
According to market research firm Omdia, shipments of OLED TVs in North America and Europe, the representative premium TV markets, are expected to exceed 2.2 million units in the fourth quarter.
In a recently released report, Omdia predicted that a total of 2,217,600 OLED TVs would be supplied to the North American (885,300) and European (1332,300) markets in the fourth quarter.
Considering that global OLED TV shipments are expected to be 2,919,600 units in the fourth quarter, demand for premium TVs, mainly in North America and Europe, is still solid.
Demand for ultra-large TVs is also expected to be solid.
Omdia predicted a total of 968,300 units of ultra-large TVs over 80 inches in the fourth quarter of this year.
This is a 27.6% increase from the fourth quarter of last year (758,000 units).
In addition, compared to two years ago (501,300 units), it is expected to increase to regarding twice the level.
◇ Expanding the super-large product lineup… Active marketing for the World Cup
The fact that the World Cup will be held in November this year is also a good thing.
This is because sales tend to increase centering on extra-large TVs during large sports events.
Accordingly, the home appliance industry is also expecting a rebound in TV sales at the end of the year.
LG Electronics is accelerating its entry into the market in the second half of the year, starting with the world’s largest 97-inch OLED TV launched last month.
This product has 4K (3,840×2,160) resolution and the largest OLED screen that can be realized with existing display technology.
In addition, it is equipped with a 5th generation artificial intelligence (AI) Alpha 9 processor to enhance the three-dimensional effect of the video, and converts 2-channel sound sources into virtual 7.1.2-channel stereophonic sound.
The LG QNED MiniLED lineup, a premium liquid crystal display (LCD) TV lineup released at the end of last month, consists mainly of super-large models such as 75 and 86 inches, except for one 65-inch product.
In addition, the bendable gaming OLED TV ‘LG OLED Flex (FLEX)’, which was first unveiled at IFA 2022 last month, is also scheduled to be released in Korea on the 19th of this month.
This product is a flexible TV that can freely bend and unfold the screen up to 900R (the radius of a 900mm circle is bent) depending on the situation.
Samsung Electronics will continue its premium strategy focusing on flagship products such as Neo QLED TVs.
Following the launch of a 110-inch micro LED TV last year, 89 and 101-inch models are expected to be introduced soon.
Marketing aimed at the World Cup season is also active.
Samsung Electronics is implementing trade-in sales at offline stores such as Digital Plaza and department stores until the 30th of next month.
In addition, online, until the end of this month, the ‘SPOTV’ premium subscription event is being held for TV and projector products.
LG Electronics will hold the ‘All-Ready with OLED’ until the end of next month. Promotion of ‘Victory Korea Grand Festival’.
/yunhap news
