Yes and no… The two weeks (weeks 22 and 23) ahead of the first Euro matches were the strongest we’ve seen this year, compared to the year-to-date average. In fact, 2021 in general has been ahead of the same period in 2018, where we had the Football World Cup – but only up until week 22. Once the Euros started, sales this year tailed off sharply, whereas 2018 saw longer extension of the peak in revenue, and, in 2016, the peak was higher.
In fact, no. Pre-tournament sales (weeks 22 and 23) were driven by increased purchases of the really big screens - 65 inches and above! – and the average selling price (ASP) across all TVs peaked at €520 over this period. However, once the Euros started, those big screen sales dropped off and the smaller screens saw increased sales.
We may pull out two pattern here:
In both of the purchase patterns above, it appears that people see the value of paying extra for features such as an enhanced picture quality within their chosen screen size, to get the best viewing experience for their budget.
The rest of this year is now even more crucial for manufacturers and retailers - especially as so many people already invested in a new “lockdown TV”, particularly during the last half of 2020.
Despite this, GfK still expects a positive growth in Consumer Electronics this year, driven by increase ASP, but reduced units sold.
Where we see the key opportunity lying is in the continued consumer demand for premiumization. With overseas summer holidays still a bit of a doubtful landscape, many people have extra disposable income available, and will be ready to consider upgrades rather than straight replacements:
Jan Lorbach is Senior Global Strategic Insights Manager at GfK. With a passion for understanding what people buy and why, Jan has been one of GfK’s specialist on Consumer Electronics for over 9 years, regularly presenting to clients and at industry conferences on the latest CE trends and predictions for the coming months.