The NPD Group Inc.

The NPD Group Inc.

September 27, 2007 08:30 ET

NPD Group: Canada Getting Flatter

Consumers rush to upgrade their television sets

TORONTO, ONTARIO--(Marketwire - Sept. 27, 2007) - More Canadians believe that thinner is better when it comes to their televisions. According to The NPD Group, in the eight months ending July 2007, flat-panel television sales doubled. The trend towards flat is matched by a growing appetite for large screen formats, with 37-inch formats and larger representing a significant portion of sales in the last year.

According to NPD, sales of traditional tube TVs are down 38 per cent compared to the same time last year. However, flat-panel TV sales are up 114 per cent and screens boasting 37 inches or more skyrocketed 184 per cent for the year ending July 2007. The shift in consumer preferences has resulted in a 12 per cent increase in total dollar revenue for retailers.

"We are seeing a major shift in the technology and size of televisions purchased by Canadian consumers and it highlights a significant opportunity for consumer electronics retailers across the country," said Mark Haar, Technology Industry Analyst, The NPD Group. "Our data clearly shows that Canadians are snapping-up flat panel televisions."

Declining prices have driven the exponential growth. The NPD Group reports that the average price of a 40-44 inch flat panel TV in Canada fell from $2,464 in July 2006 to $1,577 in July 2007. Likewise, the average selling price on the super large 50 inch plus TV has declined from $3,904 in July 2006 to $2,721 dollars.

Plasma and LCD formats doing well

Further insight from NPD shows both the LCD and Plasma formats benefiting from the increased demand for large flat panel TVs. The LCD format of 37-inch plus TVs represented 61 per cent of sales in 2007 compared to 34 per cent a year ago, while plasma is particularly strong within the "super-sized" 50-inch plus segment with growth rates of 231 per cent, which accounts for 83 per cent of total sales within this screen size.

Canada/U.S. Market Comparison

In the US, of all TV's sold over the past six months, 71 per cent were flat panel versus 43 per cent in Canada. Conversely, the standard picture tube television represented 41 per cent of all TV sales in Canada versus just 21 per cent in the U.S.

"It's important to note that the U.S. television set market is much more developed and it's only in the last year that we've started to see a significant shift in consumer buying trends in Canada," said Haar. "But when you look at the growth rate, Canadians are moving toward the new technology at a much quicker pace than our neighbours to the south."

The NPD Group also reports that overall TV sales declined seven per cent in the US but remained unchanged during the same period in Canada.



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Sales of various TV segments in Canada and the U.S.
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Platform Canada U.S.
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Tube TVs -38 per cent -62 per cent
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Rear Projection TVs -35 per cent -25 per cent
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Flat Panel segment
(LCD and Plasma) 114 per cent 79 per cent
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Source: The NPD Group
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Breakdown of Flat Panel Sales
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Size Canada U.S.
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Flat Panel (37-inch
or more) 184 per cent 127 per cent
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Super-sized Flat Panel
(50-inch plus) 300 per cent 90 per cent
Note: Plasma Note: Plasma
holds 83 per holds 83 per
cent of the 50" cent of the 50"
plus market plus market
-----------------------------------------------------------
Source: The NPD Group
-----------------------------------------------------------


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Share of Flat Panel TVs (37-inch and higher)
-----------------------------------------------------------
LCD Plasma
-----------------------------------------------------------
Canada 61 per cent 39 per cent
-----------------------------------------------------------
U.S. 64 per cent 34 per cent
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Source: The NPD Group
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About the NPD Group, Inc.

The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,600 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys, and wireless. For more information, visit www.npd.com.

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