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All wide now: UK consumers have really taken widescreen to their hearts - Widescreen TV
There can be no doubt that widescreen has broken out of its niche market and stormed into the mainstream--to the point where it is now the standard, more common on retailers shelves than 4:3 models.
The market has exploded faster than a car in a Schwarzenegger movie, with volumes now exceeding 200,000 units annually, and representing more than 40% of total CTV sales. More importantly, widescreen sales now account for three quarters of the total CTV market--with the leaders being Panasonic, followed by Philips and Sony.
Of course, it is not all smiles for the sector. Like DVD, it has been heavily hit by price erosion, with shoppers able to pick up a 28in TV in the supermarket for just a few hundred pounds. However, manufacturers clearly feel that this is par for the course in any market, shrugging off the lower prices as a fact of life.
Toshiba product manager Simon Heape comments: "All consumer markets segment between high-end and low-end and have high-end and low-end retailers. At the moment consumers are mainly buying cheaper, lower-end TVs in supermarkets. I believe value will be retained as consumers are interested in brand names, and added features and benefits, not necessarily the cheapest model possible. There is still plenty of opportunity for high street retailers selling high-end products, particularly with their expertise and after-sales service."
Indeed Sanyo product manager Alex Lungley points out that independents are capable of rearranging their stores to suit the products, as well as being perfectly placed to demonstrate just how hot the latest hot films will sound on a state of the art system.
As it is, some industry voices believe that such sales channels may actually be helping promote the sector, being beneficial rather than detrimental.
Philips TV marketing manager Ian Knight explains: "With occasional models being offered at such low prices, there is inevitably a challenge in retaining the value of the widescreen market.
"While supermarkets can play a role in promoting the benefits of widescreen to a broader consumer audience who have no yet upgraded from 4:3, they do not have such a suitable selling environment that can promote/display more stylish finishes, new technology and more highly specified products.
"Those trading up or buying the home cinema package still have a preference to purchase in one of the more traditional retail environment where they can seek more specialist service and advice."
One of the areas in which manufacturers are succeeding in providing a value added feature is the flat screen set. Designed to minimise distortion, flat screen televisions have proven to be an enticing proposition to consumers, so much so that it has become the norm in the higher end of the market.
Nonetheless, despite the fact that Sony is now releasing all its sets with a Wega flat screen, Alan Joannidi, Sharp electronics' vision imaging product manager, feels that we are a long way from a time when flat screens will become the standard throughout televisions.
"While pressure on price is inevitable in a sector that is maturing rapidly, manufacturers can still maintain value through offering flat tube TVs, inbuilt digital tuners and by offering larger screen sizes up to 36in," he says.
"Flat screen designs are the main trend at the moment, with many curved tube models, such as our 28in and 32in JW range, being cleverly styled to have a flat screen appearance. Curved screen 16:9 models aren't being squeezed by flat screen as the lower end of the sector is becoming commoditised and here most consumers aren't willing to pay the additional premium for flat screen."
The voice of dissent, on the other hand, comes from David English, product manager at Thomson: "I think, increasingly, curved screens are becoming obsolete. The value in this market is almost half that of the extra-flat sector, but the volumes are still higher. As pricing of extra-flat falls, then demand will increase. Curved screens will still be around for a few more years at the entry level, but all new product development will be centred around extra-flat."
Also, despite the presence of smaller widescreen screen sizes, they have yet to make 4:3 sets obsolete. Indeed that particular market has done well in weathering the storm of its more cinematic successor. However, the value of the market is much less enticing.
"The market for large screen 4:3 has remained surprisingly buoyant over the past couple of years," says Philips's Mr Knight, "and is still forecast to be in the region of 1.1 million units in 2003, representing a decline of around 9%. If we include portable, then total 4:3 TV sales will still represent around 48% of the total market in volume and around 16% in value."
These ideas are reiterated by Steve Mitchell, product manager for TV at Panasonic: "The 4:3 sector is undoubtedly in decline, the rate of decline is not as great as the growth of widescreen sets. Industry figures also show an even decline across 4:3 screen sizes with portable sets declining at the same rate as the overall 4:3 sector.
"Demand still remains from the price conscious consumer and for bedroom use. This sector has also seen the introduction of flat screen merchandise which has further helped to buoy up sales."
Toshiba's Mr Heape, meanwhile points out that some people still prefer the more traditional style.
"Demand for 4:3 sets is falling, but it's a question of preference, with some consumers. We mustn't forget that lots of TV (including some football) is still broadcast in 4:3, so consumers will not always see the benefit of the widescreen format."
So far however, Britain has shown a real preference for this aspect ratio, more so than much of the rest of Europe. What then has made the British public so much keener to invest?
Toshiba's Mr Heape gives his thoughts on the matter: "Despite reluctance in the past, the UK consumer is now clearly embracing widescreen and larger screen sizes, and this trend is likely to continue, particularly with the increase in the amount of widescreen broadcasts on TV. The purchase of a DVD player has also provided the impetus for people to upgrade to a TV that is capable of doing justice to the clarity of digital images and surround sound."
Indeed, DVD has much to answer for when it comes to the proliferation of 16:9 in the living rooms of the country.
So too, for that matter, does digital television, and now that things have settled down somewhat with regard to content and with one of the most trusted brand names in the UK dishing out the content, it seems as though digital television will continue to propel widescreen television.
As this continues to happen, then, it is vital that independent retailers do not lose out to other sales channels.
Hitachi product marketing manager Peter Johnson has some ideas: "It is difficult for independents to ensure they don't lose out in the mass market sector, but in the Home Cinema field they can display and demonstrate complete set-ups more easily than the multiples simply because they can control the layout of their premises more easily. This eliminates the need to walk from the TV section to the hi-fi section to choose complimentary products."
Toshiba's Mr Heape agrees that the best way to remain a player in the widescreen television market is to fall back on the old staple of advice and service.
"Independents can ensure they don't lose out to multiples by offering good advice and customer service, also independents are very good at grabbing the emerging technologies quickly. Manufacturers need to work with retailers to ensure they are up-to-date with the latest products, and can talk knowledgeably to customers. Toshiba produces `Dealer Training Guides'--pocket-sized reference guides that detail features, benefits and demonstration tips to assist the sales force."
Furthermore, Andrew Mullen, product technical manager at LG points out that independents can use their expertise not only to ensure a stable customer base, but also to avoid the pitfalls of price erosion.
"By offering their customers a level of service that ensures they find out what the customer wants and finding a product that suits their needs, they can ensure they won't lose out," he says. A customer visiting an independent will do so because they feel they will get a more personal service. This may well be because they are not entirely sure about the technology or what would best suit them. This gives the independent an opportunity to possibly sell up to a product that better suits the customers needs."