TV Sales Surge Breaking Through COVID... Online Purchase Popularity

[Asia Economy Reporter Changhwan Lee] It has been revealed that online TV sales have significantly increased due to the novel coronavirus infection (COVID-19). The TV demand, which had been suppressed by the virus, has recently surged, leading to forecasts that the influence of online channels will grow further in the future.

According to KB Securities and the electronics industry on the 31st, the online sales ratio of Samsung Electronics and LG Electronics TVs is estimated to expand from 20% in the first half of this year to over 30% in the second half.

The online sales ratio of Samsung Electronics and LG Electronics TVs was about 10% last year, but it is expected to increase more than threefold this year. This is because consumers prefer non-face-to-face (untact) purchasing environments such as online or mobile rather than visiting stores in person due to COVID-19.

Recently, the COVID-19 revenge consumption phenomenon, centered on North America and Europe, is also cited as a factor increasing the online sales ratio. Since June, as economic activities resumed in major TV markets such as North America and Europe, TV sales have rapidly increased. There is also analysis that TV sales are increasing as more households connect YouTube or the internet to their TVs for remote classes or video conferences.

In particular, the U.S. government has provided disaster relief funds up to $3,400 for a family of four due to COVID-19, and the previously suppressed consumer sentiment has been focused on major home appliances such as TVs, washing machines, and refrigerators. Accordingly, last month, Samsung Electronics' TV shipments are estimated to have surged 90% year-on-year to 4 million units, and LG Electronics' shipments increased by 38% to 2.6 million units.

As TV sales increase, panel prices are also soaring. According to market research firm TrendForce, TV panel prices have recorded a double-digit percentage increase this month. By size, 32-inch panels rose 15.8%, 55-inch panels 13.7%, and 65-inch panels 6.9%.

TrendForce analyzed that the recent rise in TV panel prices is due to increased TV demand, with major TV brands such as Samsung and LG accumulating panel inventory in preparation for increased TV demand in the second half of the year.

TV sales volume is also expected to increase in the second half. Market research firm Omdia forecasted that global TV shipments in the third quarter of this year will reach about 50.5 million units, a 17% increase compared to the second quarter. Furthermore, shipments are expected to reach 63.54 million units in the fourth quarter.

Dongwon Kim, a researcher at KB Securities, explained, "The increase in online sales is expected to help improve the profitability of companies such as Samsung Electronics and LG Electronics," adding, "Offline sales incur distribution costs such as promotional and exhibition expenses, but online sales can significantly reduce these costs."

This content was produced with the assistance of AI translation services.