51% of all consumers say that they would purchase a TV from a less familiar brand if they offered better value for money, rising to 68% of 16-24 year olds. With challenger brands entering the market offering robust yet significantly cheaper versions of UHD TVs, consumers, mindful of higher-end spending and looking for a bargain, could be swayed by the new challengers.

COVID-19 has seen major manufacturers worldwide declare that they expect a significant downturn in television business as a result of COVID-19, brought on by the closure of manufacturing facilities and depressed consumer demand. However, despite this, retailers experienced a boost as a result of the lockdown, with people adjusting to new home-based routines and sales of TVs were one of the beneficiaries.

Nevertheless, despite that initial boost, supply chain issues and the residual economic downturn will likely dampen sales of higher-end televisions coming out of the pandemic.

2021 has the potential to provide a springboard back to growth should the pandemic be kept at bay and major sporting events such as the re-arranged Euros and Olympics go ahead, which can provide a boost to TV sales.

• The impact of COVID-19 on the televisions market.

• Innovations of companies operating in the televisions market, including new entrants looking to disrupt the market by offering competitively priced high-end sets.

• Important factors when purchasing or upgrading TVs.

• Consumer attitudes towards TVs, including the role retail settings and expert guidance play in the decision-making process, drive new purchases.

The first COVID-19 cases were confirmed in the UK at the end of January, with a small number of cases in February. The government focused on the ‘contain’ stage of its strategy, with the country continuing to operate much as normal. As the case level rose, the government ordered the closure of non-essential stores on 20 March.

A wider lockdown requiring people to stay at home except for essential shopping, exercise and work ‘if absolutely necessary’ followed on 23 March. Initially, a three-week timeframe was put on the measures, which was extended in mid-April for another three weeks.

The Health Protections Regulations 2020 came into effect on 15 June allowing the reopening of all non-essential stores in England as well as the mandatory use of face coverings on public transport. Pubs, restaurants, hotels and hairdressers were able to reopen on 4 July, with many beauty businesses following on 13 July.

From 24 July, it became mandatory to wear face coverings in shops and supermarkets. 

On 9 September, new guidelines were announced in England as a reaction to rising numbers of COVID-19 cases. The major change was a tightening of restrictions on social contact, with people only allowed to socialise with groups of up to six people who they do not live with.

Mintel’s economic assumptions are based on the Office for Budget Responsibility’s central scenario included in its July 2020 Fiscal Sustainability Report. The scenario suggests that UK GDP could fall by 12.4% in 2020, recovering by 8.7% in 2021, and that unemployment will reach 11.9% by the end of 2020, falling to 8.8% by the end of 2021.

The current uncertainty means that there is wide variation on the range of forecasts, however, and this is reflected in the OBR’s own scenarios. In its upside scenario, economic activity returns to pre-COVID-19 levels by Q1 2021. Its more negative scenario, by contrast, would mean that GDP does not recover until Q3 2024.

For the purposes of this Report, Mintel has used the following definitions:

This Report examines the UK market for televisions. ‘Televisions’ in this context refers to any independent device built explicitly with the purpose of receiving broadcast television signals. Personal computers plugged into an aerial, for example, are not included within this definition and are not included in the market size estimates.

‘Smart’ televisions are those that have the ability to connect directly to the internet built into them and come with customised software designed to facilitate this. TVs that are connected via other devices, like set-top-boxes or games consoles, are not defined as ‘smart’, even though these devices provide access to many of the same features that smart TVs have.

For the purposes of this Report, small-screen TVs are classified as those sized 31 inches and below, medium TVs are sized 32-45 inches, and large-screen TVs refer to those sized 46 inches and above.

The terms 4K and Ultra HD are used interchangeably throughout this Report in reference to TVs that display a horizontal resolution of 4,000 pixels.

Discussion of the ‘main’ television set refers to the television with which consumers will spend the most time. Normally this is contained in the living room. ‘Secondary’ sets are generally referred to as TVs in kitchens, bedrooms or other rooms.