What They Say
An initial report from the GfU said that the value of sales of TVs in Germany was up 1% in Q3 2021 on the year ago period at €884 million. The main reason was a boost in average price from €588 to €702 as the volume fell by almost 16% to just under 1.3 million. The change was helped by a boost in larger set sales, with 65″ and above sets growing to 39% by value and 21% by volume. The average price for 65″ and above rose to almost €1300.
What We Think
As the saying has it “Never mind the volume, look at the value”. I would expect, though, a move to higher prices to favour premium brands. The more that gets spent, the less likely it is that a consumer would take a risk on a lesser brand. (BR)
