Electronics Production | October 14, 2009
Russian LCD-TV shipments to rise 13.6% in 2009
Defying hard economic times, the Russian LCD-TV market is set for strong growth this year, with shipments rising by 13.6% in 2009, according to iSuppli.
Shipments of LCD-TVs in Russia will rise to about 5 million units in 2009, up from 4.4 million in 2008. By 2013, shipments will nearly double from the 2009 level, increasing to 9.6 million units. Revenue will increase to $5.7 billion by 2013, up from $3.1 billion in 2008. “Like many other nations, Russia was hit hard by global economic crisis in 2009,” said Riddhi Patel, principal analyst for television systems for iSuppli. “However, Russia faced the added challenges of the devaluation of the ruble and plunging prices for its main export: oil. Despite this, LCD-TV sales in the country continued to soar because Russian consumers view these sets as a highly-desirable status symbol. Consumers in Russia are very image conscious and prefer to own televisions that they can show off to neighbors and family members.” LCD-TVs are the only segment of the Russian TV market that is expanding, with shipments of Plasma Display Panel-Televisions (PDP-TVs) and Cathode Ray Tube-Televisions (CRT-TVs) decreasing in 2009 and beyond. The attached figure presents iSuppli’s forecast of Russian LCD-TV unit shipments for the period of 2008 through 2013. Among brands in Russia, South Korean OEMs are in a winning position because of their strong brand recognition. Furthermore, the South Korean OEMs also have domestic production capabilities and vertical integration—factors that allow them to have better control over their costs and prices. As far domestic Russian brands go, they are suffering from a lack of financial strength as well as the absence of branding. However, with a strong marketing strategy and the capability to be price competitive, Russian brands could challenge global OEMs in the domestic market. Author: iSuppli