Televisions: Incl Impact of COVID-19 - US - September 2020

OVERVIEW
What you need to know
Key issues covered in this Report
Definition
COVID-19: Market context
Economic and other assumptions
EXECUTIVE SUMMARY 
Top takeaways
Market overview
Figure 1: Total US sales and forecast of televisions, at current prices, 2015-25
Impact of COVID-19 on televisions
Figure 2: Short-, medium- and long-term impact of COVID-19 on televisions, August 2020
Challenges
Urban dwellers’ surge in TV purchases could mean lagging sales in the near future
Figure 3: Time since last TV purchase, by area, July 2020
Brand reputation matters less to younger consumers
Figure 4: Perceptions of TV brands as reputable, by age group, July 2020
TVs may feel less central to the household in the future
Figure 5: Attitudes about TV’s role in the home, by age group, July 2020
Opportunities
TV owners – particularly younger owners – want their sets to look good
Figure 6: Desired TV features, by age group, July 2020
Televisions are more central to Black and Hispanic households
Figure 7: Attitudes about TV’s role in the home, by race and Hispanic origin, July 2020
Connectivity isn’t the future – it’s now
Figure 8: Attitudes about TV connectivity, by age group, July 2020
THE MARKET – KEY TAKEAWAYS
The TV market is holding steady
A new era of tech has reached consumers 
The slow economy will limit long-term recovery
Home theaters can become more theatrical
Streaming services are a new frontier for advertisers
MARKET SIZE AND FORECAST
TV sales will slow, but still grow
Figure 9: Total US sales and forecast of televisions, at current prices, 2015-25
Figure 10: Total US sales and forecast of televisions, at current prices, 2015-25
Impact of COVID-19 on televisions
Figure 11: Short-, medium- and long-term impact of COVID-19 on televisions, August 2020
Lockdown
Re-emergence
Recovery
High levels of concern about COVID-19 exposure keeps people inside
Figure 12: Concern over exposure to COVID-19, March-August 2020
In-store shopping slowly making a comeback
Figure 13: Coronavirus shopping behaviors, April-August 2020
Consumers are settling in with their tech purchases
Figure 14: Change in technology spending priorities, April–August 2020
COVID-19: Market context
Learnings from the last recession
Figure 15: Television sales, Q1 2006-Q2 2020
SEGMENT PERFORMANCE
Better tech is reaching consumers
Figure 16: Features of last TV purchased, July 2020
MARKET FACTORS 
Unemployment improving, but recovery isn’t guaranteed
Figure 17: Unemployment and underemployment, January 2007- July 2020
Figure 18: Disposable Personal Income change from previous period, January 2007-June 2020
Figure 19: Consumer Sentiment Index, January 2007-August 2020
A strong housing market can create demand for TVs
Figure 20: Reasons for buying a new TV, by generation, July 2020
MARKET OPPORTUNITIES 
Consumers will bring the theater home
Streaming will be the new broadcast
4K will be the growth area as 8K capabilities lag
VR could take over niche markets in time
COMPANIES AND BRANDS – KEY TAKEAWAYS 
New brands may upset the current market share
Consumers choose 4K, unless it costs $1K
Marketing strategies vary
MARKET SHARE
Market share is stratified, but new players are emerging
Figure 21: Smart TV brand ownership – most recently acquired, September-November 2019
The four-figure TV market is niche, and static
Figure 22: Cost of newest television, 2015-19
COMPETITIVE STRATEGIES
Demands exist beyond the pandemic
Samsung
Figure 23: Samsung 4K QLED mobile ad, January 2020
Figure 24: Samsung TV online ad, July 2020
Vizio
Figure 25: Vizio SmartCast 4.0, August 2020
Figure 26: @VIZIO movie night tweet, August 2020
LG tries to breathe life into a niche product
Figure 27: @LGUS CineBeam tweet, July 2020
THE CONSUMER – KEY TAKEAWAYS  
Young men drive recent purchases
The living room and bedroom are prime TV locations
Picture and sound are the most important qualities
Sony and Samsung are seen most favorably
The ownership cycle still depends on replacement
Consumers inform themselves before buying
TV holds a central place in the home
Connected households have a future through the TV
KEY CONSUMER TREND DRIVERS AND TELEVISIONS
Technology
Identity
Value
Figure 28: Mintel Trend Drivers – Technology, Identity, and Value and Pillars
TV OWNERSHIP
Consumers under 35, particularly men, drive recent purchases
Figure 29: Time since last TV purchase, by gender, July 2020
Figure 30: Time since last TV purchase, by age and gender, July 2020
Figure 31: Reasons for purchasing a TV in the last six months, by males aged 18-34, July 2020
Income has little bearing on purchasing
Figure 32: Time since last TV purchase, by household income, July 2020
Spike in purchases by urban residents could disrupt future sales
Figure 33: Time since last TV purchase, by area, July 2020
Parents may be good on TVs for now
Figure 34: Time since last TV purchase, by parental status, July 2020
TV LOCATIONS
TVs live in the living room
Figure 35: Location of TVs in household, July 2020
Figure 36: Most popular location of TVs, by number of TV-equipped rooms in household, July 2020
Kids are third in line
Figure 37: Incidence of TV in a child’s bedroom, by number of TVs in the household, July 2020
Younger households are less centralized
Figure 38: Location of TVs in household, by age group, July 2020
Black consumers set up sleep-in theaters
Figure 39: Location of TVs in household, by race and Hispanic origin, July 2020
Helping hobbies are a potential marketing vector for higher income households
Figure 40: Location of TVs in household, by HHI, July 2020
DESIRED TV FEATURES
Resolution, sound and appearance are most important
Figure 41: Desired TV features, July 2020
Figure 42: TURF Analysis – Television features sought, July 2020
Younger consumers are more holistic in their demands
Figure 43: Desired TV features, by age group, July 2020
Black, Hispanic and Asian households concerned about energy savings
Figure 44: Desired TV features, by race and Hispanic origin, July 2020
Parents look to support peripherals
Figure 45: Desired TV features, by parental status, July 2020
Figure 46: TV and speaker purchase intent, all vs console players, November 2019
BRAND OPINION
Sony and Samsung generally favored, Vizio has an important standing
Figure 47: TV brand perceptions, July 2020
Brand reputation matter less to younger consumers
Figure 48: Perceptions of TV brands as reputable, by age group, July 2020
Black and Hispanic consumers value showing off their TVs
Figure 49: Perceptions of TV brands as worth showing off, by race and Hispanic origin, July 2020
Consumers with lower incomes see brand-agnostic durability
Figure 50: Perceptions of TV brands long-lasting, by HHI, July 2020
REASONS FOR PURCHASE
Sales can be the push that justifies the purchase
Figure 51: Reasons for purchasing most recent TV, July 2020
Young viewers are the most motivated by occasions
Figure 52: Reasons for purchasing most recent TV, by age group, July 2020
Urban consumers have varied reasons for purchase
Figure 53: Reasons for purchasing most recent TV, by area, July 2020
Sales are a powerful catalyst for the financially comfortable
Figure 54: Reasons for purchasing most recent TV, by financial outlook, July 2020
Holiday sales attract Hispanics and parents, as well as low-HHI consumers
Figure 55: Incidence of gifting TVs, by parental status, HHI and race and Hispanic origin, July 2020
TV RESEARCH BEHAVIORS
In-market consumers go straight to the source for information
Figure 56: Behaviors around TV research, July 2020
Younger consumers use a greater variety of sources
Figure 57: Behaviors around TV research, by age group, July 2020
Asians and Hispanics are informed and influenced
Figure 58: Behaviors around TV research, by race and Hispanic origin, July 2020
ROLE OF TV IN THE HOUSEHOLD
TV is still central to the home
Figure 59: Attitudes about TV’s role in the home, July 2020
Digital natives feel fewer ties to TVs
Figure 60: Attitudes about TV’s role in the home, by age group, July 2020
Black and Hispanic consumers feel particularly attached to TVs
Figure 61: Attitudes about TV’s role in the home, by race and Hispanic origin, July 2020
TV is essential for parents 
Figure 62: Attitudes about TV’s role in the home, by parental status, July 2020
ATTITUDES TOWARD TV CONNECTIVITY
Consumers are increasingly interested in connectivity
Figure 63: Attitudes about TV connectivity, by age group, July 2020
Asian and Hispanic consumers are the most interested in connectivity
Figure 64: Attitudes about TV connectivity, by race and Hispanic origin, July 2020
Parents want the convenience of connectivity
Figure 65: Attitudes about TV connectivity, by parental status, July 2020
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Forecast
Consumer survey data
Direct marketing creative
Abbreviations and terms
Abbreviations
Terms
APPENDIX – THE MARKET
Figure 66: Total US sales and forecast of televisions, at current prices, 2015-25
Figure 67: Total US sales and forecast of televisions, at inflation-adjusted prices, 2015-25
APPENDIX – THE CONSUMER
TURF analysis
Figure 68: Table - TURF Analysis – Television features sought, July 2020
Methodology
APPENDIX – MINTEL TREND DRIVERS
Figure 69: Mintel Trend Drivers and Pillars