Economic worries may have consumers keeping a close watch on the family budget but there’s one line of products that people are ready to shop for: TVs. Ongoing technology changes are prompting consumers to replace their TVs more frequently. To generate higher sales, marketers must promote the features consumers want.
The new NPD DisplaySearch Global TV Replacement Study shows that the average cycle of TV replacement is speeding up in the U.S. Last year, consumers were buying replacements for sets that were nearly 8 years old. But looking ahead for the next 12 months, consumers are indicating a slightly different attitude. Consumers say they are willing to replace sets that are only 6 years old.
Globally, about 22% of households will purchase a new TV in the next year. Another 31% will replace a TV. Consumers say their most pressing reason for buying a TV is size. In the U.S., sets with a 40–44” inch display are most popular. In addition, consumers are purchasing flat panels sets to replace their old CRTs.
Manufacturers had been hoping that new features such as 3D and Internet readiness would be strong drivers in the market. However, NPD research indicates those factors are not the main reasons to upgrade. Another long-held belief – that TV replacement is driven by a move to a new home – was also proven incorrect by this study.
The U.S. is a mature market and as a result, the transition from CRT to flat panel will drive only limited market growth for manufacturers and retailers. Researchers see that U.S. consumers are already replacing their first generation of flat panels and for the most part consumers are buying sets with bigger displays in this country. This trend should drive marketers to think large when they are designing their promotional messages.[Source: Global TV Replacement Cycle. NPD.com. 29 May 2012. Web. 5 Jun. 2012]