Brand View has been tracking the General Merchandise market for the last two years. This Insight report takes a look at some of the price and promotional activity in the Television market since April 2012.
Trend in TV Base Price
• There have been significant changes in the average price of TVs over the last 12 months, with particularly large increases at the beginning of September and the end of October.
• The rises in September can be attributed to new product launches in the upper end of the market, with the launch of Panasonic’s mid to high-end TVs a contributing factor.
• The pre-Christmas rise in late October was driven by activity in the market that included Asda Direct’s launch of a number of new high-end Samsung TVs. Currys listed a number of higher-end TVs, including Samsung and Sony models, during these weeks.
• Since early November however, the strong base price growth has halted and reversed, with the average base price for TVs now lower than a year ago, at £610.
Base price = price excluding promotions
Retailers included in analysis = Amazon, Argos, Asda Direct, Currys, John Lewis, Sainsbury’s and Tesco Direct
The Longer-Term Picture
TVs have been reducing in price over the last few years, though not as sharply as during the first few recessionary years. If we take out the top-end of the market (£5,000 plus) to negate its effect, the average price per retailer between 2012 and 2013 highlights the following trend:
• From the retailers listed, only Argos has shown a slight rise in the average price of a TV. This is due to its expanded mid-range offering. However, Argos is still the third lowest in price.
• Currys has reduced the overall average price of its range by over a third – aggressively meeting the challenges of the market put forward by pure play retailers such as Amazon – through deep discounts on promotions, and the price promise to beat competitor prices by 10 per cent.
Retailer Presence by Price Bands
By examining each retailer’s range of TVs, we can see the key price bands in which each operate:
• Argos predominantly operates in the under £800 market, along with the major multiples, Asda and Tesco.
• Amazon’s heartland appears to be from £600 – £1,200, offering half of all TVs available from these retailers in the £1,000 – £1,200 price band.
• Currys also has a wide offering, holding significant presence across all price bands, but slightly lower in the £400 – £800 bands.
• As expected, John Lewis offers a significant part of the market from £600 and upwards, but with an unexpected smaller offering in the £1,000 – £1,200 price band.
As the number of web-enabled televisions continues to grow, the heightened competition has helped to drive prices down over the last year in this sector:
• Over the last year, web-enabled, or Smart TVs, have dropped in price by an average of 27 per cent, from £1,129 to £824.
• These TVs are at a significant premium to non-internet TVs (although there are also other factors contributing to this differential, such as lack of availability of the function on smaller TVs, inclusion of 3D capability and so on).
• The current average price difference between the two sectors is £458. However, this difference has come down significantly over the last year, with the average difference being £686 in April 2012.
Smart TVs by Retailer
Most retailers have dropped the average price of Smart TVs over the last year, either through lower base prices as manufacturers increase efficiencies of production, or through promoting the sector more heavily:
• All retailers’ ranges of Smart TVs have come down in price with the exception of John Lewis.
• Currys and Sainsbury’s in particular have shown significant drops in the price of their Smart TV ranges, with the Currys range for the first time being, on average, cheaper than Amazon.
• Sainsbury’s now offers the most inexpensive range of Smart TVs online, followed by Argos and Tesco Direct.
• At the upper end of the market, the John Lewis range is the most expensive, followed by Amazon and Currys.