Table of Contents
Executive Summary
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- Impact of COVID-19 on Televisions
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- Figure 1: Short, medium and long-term impact of COVID-19 on Televisions, September 2020
- The market
- Market size and forecast
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- Figure 2: Volume of the UK market for Televisions, 2015-25
- Figure 3: Value sales of Televisions, 2015-25
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- Figure 4: Market value and volume of Televisions 2015-25
- Global supply chain looks to be hit as COVID-19 impact bites
- Manufacturers profit warnings as closure of factories affect output
- Companies and brands
- Samsung looks to build on its stable of 8K ready TVs
- TCL enters market with significantly cheaper 4K sets
- LG targets gamers and those looking for in-home cinematic experiences
- Hisense aims to break through with ULED models
- The consumer
- Increase in single-set households compared to 2019
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- Figure 5: Number of televisions in the household, June 2019 and June 2020
- Incremental increase of 4K TVs in the household from 2019
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- Figure 6: Type of televisions in the household, April 2018-June 2019
- Big four brands maintain dominance
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- Figure 7: Brands of TV in the household June 2020 and June 2019
- Three in 10 households have a 4K or 8K main set
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- Figure 8: Type of television used most often in the household June 2020
- A quarter have had their main television for more than five years
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- Figure 9: Age of main television June 2020 and June 2019
- Little appetite for extra features when considering purchase of a new set
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- Figure 10: Important features when upgrading, June 2020
- Expert guidance still critical in the decision-making process
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- Figure 11: Attitudes to televisions June 2020
COVID-19 and Televisions
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- Impact on the market
- Resilient retail performance in early lockdown
- Manufacturers announce expected hit on profit of TV business
- Impact on consumers
- Returning consumer confidence hints at stable short-term platform for TV market
- Consumer trends in electrical equipment purchase could benefit from savings buffer
- Impact on companies and brands
- Postponement of global sporting events impacts purchases and upgrades
- Discounting and sales of smaller sets drive value down
Issues and Insights
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- Challenger brands could flourish in post-COVID landscape
- Television market’s transition period means consumers will look for future-proofed models with intelligent features
The Market – Key Takeaways
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- Decline in market volume and value expected for 2020
- Manufacturers eye 5G compatible sets for delivering UHD content
- ‘TV’ is a multi-channel platform
- Global supply chain looks to be hit as COVID-19 impact bites
- Falling price points for OLED TVs making cinematic quality affordable
Market Size and Forecast
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- COVID-19 causes supply chain issues, but retail performance remains initially resilient
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- Figure 12: Short, medium and long-term impact of COVID-19 on Televisions, September 2020
- Strong retail performance in early lockdown partly offsets wider supply chain problems
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- Figure 13: Volume of the UK market for Televisions, 2015-25
- Figure 14: Value sales of Televisions, 2015-25
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- Figure 15: Market value and volume of Televisions 2015-25
- Discounting and sales of smaller sets drive value down
- UHD’s long sales tail will mean 4K and OLED will grow organically
- Shorter-term innovations that can provide a practical boost to viewing experience will help bolster the market
- Market drivers and assumptions
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- Figure 16: Key drivers affecting Mintel’s market forecast, 2015-25 (prepared on 24 September 2020)
- Learnings from the last recession
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- Figure 17: Value forecast of UK television purchases, 2007-17
- Figure 18: Volume forecast of UK television purchases, 2007-17
- Figure 19: Market value and volume of Televisions 2007-13
- Forecast methodology
- Economic and other assumptions
Market Drivers
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- Decline in daily viewing minutes continues
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- Figure 20: Average daily viewing minutes 2010-19
- ‘TV’ is a multi-channel platform
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- Figure 21: Top 10 TV shows of 2019 average audience – individuals (000s)
- Postponement of global sporting events impacts purchases and upgrades
- Showcase of 8K content can drive technology’s potential
- 5G networks look set to lay the foundations for 8K transmission
- Manufacturers dropping price points for OLED TVs make cinematic quality affordable
- Global supply chain hit as COVID-19 impact bites
- Manufacturers profit warnings as closure of factories affect output
Companies and Brands – Key Takeaways
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- Samsung adds to its stable of 8K TVs…
- …and builds out its smart screen capabilities in 2020 models
- TCL enters market with significantly cheaper 4K sets
- LG targets gamers and those looking for in-home cinematic experiences
- Hisense aims to break through with ULED models
Launch Activity and Innovation
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- Samsung looks to build on its stable of 8K ready TVs…
- …and focuses on intelligent displays and audio improvements
- TCL enters the fray with budget 4K offering
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- Figure 22: TCL 4K QLED TVs
- Hisense aims to make its mark with ULED models
- Roku-based set offers value and usability
- CES demonstrates next-generation TV technology
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- Figure 23: Samsung’s The Sero TV, 2020
- LG builds on its rollable TV stable
- LG targets gamers and home cinema fans with rollout of 2020 OLED range
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- Figure 24: LG GX 13 OLED Television
- Samsung looks to new and hybrid technologies to recharge portfolio
- World’s biggest outdoor television launches
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- Figure 25: C SEED 301 TV August 2020
Advertising and Marketing Activity
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- Significant fall in overall advertising spend in 2019
- Digital receives a boost while TV and cinema spending take a hit
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- Figure 26: Total above-the-line, online display and direct mail advertising expenditure on Television advertising 2016-19
- DSG top advertiser with significant TV expenditure outlay
- Sony is top TV advertiser
- The picture for 2020 will likely not improve greatly for advertising
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- Figure 27: Top 10 advertisers in the televisions market 2019
- Nielsen Ad Intel coverage
Brand Research
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- Brand map
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- Figure 28: Attitudes towards and usage of selected brands, August 2020
- Key brand metrics
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- Figure 29: Key metrics for selected brands, August 2020
- Brand attitudes: Samsung scores highly across all brand attributes
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- Figure 30: Attitudes, by brand, August 2020
- Brand personality: Samsung and LG deemed the most accessible brands
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- Figure 31: Brand personality – macro image, August 2020
- Sony considered prestigious, while Samsung is seen as the most stylish brand
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- Figure 32: Brand personality – micro image, August 2020
- Brand analysis
- Samsung scores highly across the board on all key brand metrics
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- Figure 33: User profile of Samsung, August 2020
- Sony is highly trusted and a brand people would be happy to recommend
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- Figure 34: User profile of Sony, August 2020
- 81% would recommend Panasonic
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- Figure 35: User profile of Panasonic, August 2020
- LG is a brand that becomes integral to user’s daily routines
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- Figure 36: User profile of LG, August 2020
- Philips has the lowest frequency of use amongst its users
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- Figure 37: User profile of Philips, August 2020
- Toshiba struggles to stand out from the crowd
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- Figure 38: User profile of Toshiba, August 2020
- Hisense is by far the least known about brand
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- Figure 39: User profile of Hisense, August 2020
The Consumer – Key Takeaways
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- Increased consumer confidence can provide longer-term stability for TV market
- Top four brands maintain market dominance
- Increase in single-set households, while three in 10 homes now have 4K sets
- A quarter have had their main television for more than five years
- Little appetite for extra features, while expert guidance is still critical for purchases
Impact of COVID-19 on Consumer Behaviour
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- Household electrical items see boost from COVID lockdown
- Returning consumer confidence hints at stable short-term platform for TV market
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- Figure 40: Trends in consumer confidence for the coming year January 2020-July 2020
- Increased consumer savings buffer shows potential for market recovery
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- Figure 41: Households' saving ratio quarterly percentage change,Q1 2016-Q1 2020
- Uptick in purchasing intent for electricals
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- Figure 42: Consumer trends in purchasing and intent to purchase electrical equipment, eg TV laptop in past and next three months, July 2019-July 2020
Televisions in the Home
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- Increase in single-set households compared to 2019
- Household circumstance a reflection of ownership levels of TVs
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- Figure 43: Number of televisions in the household, June 2019 and June 2020
- Incremental increase of 4K TVs in the household from 2019
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- Figure 44: Type of televisions in the household, April 2018-June 2019
Television Brand Ownership
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- Big four brands maintain dominance
- Samsung and LG can consolidate position longer-term through display innovations
- Panasonic can cater to the cinema lover
- Lesser known brands can find traction with older audiences
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- Figure 45: Brands of TV in the household June 2020 and June 2019
- Samsung consolidates as ‘main’ brand in households
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- Figure 46: Brand of the main TV in the household June 2019 June 2020
Television Type and Length of Time Owned
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- Three in 10 households have a 4K or 8K main set
- Younger males more likely to have 4K UHD sets
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- Figure 47: Type of television used most often in the household June 2020
- A quarter have had their main television for more than five years
- Sustainability concerns may prolong the upgrade cycle
- Decreasing price points of higher-end models can boost the market shorter term
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- Figure 48: Age of main television June 2020 and June 2019
Important Factors When Upgrading
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- Little appetite for extra features when considering purchase of a new set
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- Figure 49: Important features when upgrading, June 2020
- Ease of use trumps innovation as a purchase driver
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- Figure 50: Purchase drivers for new televisions June 2020
Attitudes Towards Televisions
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- Expert guidance still critical in the decision-making process
- Eight in 10 look to reviews to guide purchase decisions
- Consumers can be tempted by challenger brands that show value
- Upscaling in home set-ups could be a good short-term bet for consumers
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- Figure 51: Attitudes to televisions June 2020
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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