Color Television Market of China Recovered in 2009 (Industry Report China)
China's color television output totaled 90.3 million units in 2008, showing an annualized growth rate of 4.2% since 2004. After a short period of decline from late 2008 to early 2009, the output resumed growth during 2009, with monthly cumulative output increasing from 17.3 million units in March to 50.2 million units by July. Newly married couples and new house buyers form the principal driving force for development of the industry in China.
As the global financial crisis deteriorated from late 2008 to early 2009, the domestic real estate market experienced major depression and the volume of housing transactions dropped significantly. Moreover, growth rates of China's exports remained negative for months. These both caused China's color television industry to experience hard time during the period.
In February 2009, the Chinese government implemented the "Restructuring and Revitalization Plan for Electronic Information Industry", and initiated the campaign of subsidizing rural buyers of home appliances throughout the country. From June 2009, the government adopted the policy of trading old home appliances for new ones in nine provincial areas such as Beijing, Tianjin and Shanghai, in order to stimulate demand for home appliances. These measures proved effective so far. During the first half of2009, domestic sales volume of color televisions was about 15.1 million units, down by 20% comparedwith the same period of 2008. However, sales of flat televisions reached 9.8 million units, up by 58.3% compared with the same period of 2008. In addition, monthly data showed that the sales volumes in both domestic and abroad markets began to recover from March 2009, gradually getting close to the same level in 2008.
The National Day military parade, the upgrade to high definition television broadcasting channels and the increasing number of newly married couples all contributed to sales growth of color televisions in China. From mid-September, home appliance chain stores started aggressive promotions. During the golden week (October 1-8), the sales revenue of color television accounted for about 40% of the total revenue of home appliances. The sales revenue of color television of Gome in Beijing increased by 175% compared with the same period in 2008.
In addition, the gradual recovery of China's real estate market during 2009 also substantially drove domestic demand for color televisions. The color television industry in China is expected to show medium-level growth year on year in 2009.
By courtesy of ©ACMR-IBISWorld Reports, 2009
ACMR - ALL CHINA MARKETING RESEARCH CO., LTD.
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