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TV Sales During China’s Golden Week Down 16.6% Y/Y
Early results from China’s Mid-Autumn Festival, National Day, and Golden Week shopping ‘holidays’ (9/21 – 10/11) have indicated that TV sales were 2.684m units, down 8.3% y/y. Brick and mortar sales were down 16.6% y/y and for the first time on-line TV sales were down (0.3% y/y). As we have previously noted, TV set price increases have been instituted by most, if not all brands, to compensate for the rapid rise in TV panel prices. According to early figures, the average price of TVs sold on-line this year was up 23% y/y while B&M retail averaged up 7.6% y/y.
These are early results and are subject to revision, but it would be hard to expect something radically different given the price increases that have already been posted. If panel prices continue to rise through the end of this year the prospects for the Chinese New Year holiday (2/12/2021) will likely see similar results. With 115 days to go, given the volatility we have seen this year, things could change, but we expect TV brands are already feeling the effects of the panel price hikes and will think a bit more about the choice between meeting shipment targets, making money, or ending the year with excess high-cost inventory.
Early results from China’s Mid-Autumn Festival, National Day, and Golden Week shopping ‘holidays’ (9/21 – 10/11) have indicated that TV sales were 2.684m units, down 8.3% y/y. Brick and mortar sales were down 16.6% y/y and for the first time on-line TV sales were down (0.3% y/y). As we have previously noted, TV set price increases have been instituted by most, if not all brands, to compensate for the rapid rise in TV panel prices. According to early figures, the average price of TVs sold on-line this year was up 23% y/y while B&M retail averaged up 7.6% y/y.
These are early results and are subject to revision, but it would be hard to expect something radically different given the price increases that have already been posted. If panel prices continue to rise through the end of this year the prospects for the Chinese New Year holiday (2/12/2021) will likely see similar results. With 115 days to go, given the volatility we have seen this year, things could change, but we expect TV brands are already feeling the effects of the panel price hikes and will think a bit more about the choice between meeting shipment targets, making money, or ending the year with excess high-cost inventory.
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Barry Young
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