Retail Observer

RETAILOBSERVER.COM JULY 2014 54 T o buy or not to buy, that is the question. The one your customers are probably asking themselves about the newest television technology: Ultra HD TV. With four times the number of pixels than regular HD– hence the 4K moniker – these sets offer four times the picture resolution, a larger array of colors, sharper contrast and much larger screen formats, even curved screens for a more immersive experience. But it comes at a price. TV manufacturers are solidly behind UHD so consumers don't have to worry about choosing the "wrong" technology this time: think Beta versus VHS. The key technologies are already available on many 4K sets: HDMI 2.0, an interface for transferring video and audio data which supports 4K resolution, and HEVC, a video compression format, both of which are necessary to enjoy the full benefits of HD as it continues to improve and evolve. Industry pundits are divided, some are advising customers to buy now while others are suggesting that consumers wait for prices to drop. But for independent consumer electronics retailers, who need to get sales moving, the arguments for buying 4K are compelling enough to convince your customers to embrace 4K now. Here's why: • Ultra HD TV Is The Future, and Buying It Now Future-Proofs Your Purchase—Although UHD TV got off to a slow start since its introduction in 2012—fewer than 100,000 4K TVs were sold in the U.S. in the 12 months ending March 2014 (according to NPD's Retail Tracking Service)—Strategy Analytics forecasts that, by 2020, a third of U.S. households will own 4K sets and UHD will be the standard in screen sizes larger than 40 inches. • Prices are Dropping—Despite an initially high price tag for a UHD TV, $20,000 for an 80-inch set in 2012, prices have been steadily moving down. Strategy Analytics predicts UHD TV entry-level prices will drop below $2,000 before the end of the year from one or more of the major global TV brands (Samsung, LG, Sony and Panasonic). This makes the price of some of the lower-end 4K sets competitive with large-screen HD sets. • Better Picture Quality Right Now—Consumers are opting for larger and larger screen sizes but 1080p picture quality is reaching its limits on larger screens. If your customers are shopping for a large-screen TV, say 55 inches or up, UHD is the way to go, since buying an HD TV would lock them into an increasingly inferior standard. "For anyone considering a 70-inch TV, UHD is a must. The image is just so much better! " says Greg Sheppard, sales associate at Haney Sewing & Sound, an independent consumer electronics and appliance store in business for 45 years in Maple Ridge, British Columbia. Precisely because of this superior image quality, Sheppard hasn't been having any trouble convincing clients shopping for high-end TVs to make the jump to UHD TV. "You don't really notice the difference on smaller screens but as you move up in size, the difference in quality becomes extremely obvious." • 4K Content is on Its Way—At the moment, native 4K content is limited but it is coming and probably within the next 18 months. In the meantime, the upscalers that 4K TV manufacturers have built into their sets allows viewers to enjoy enhanced HD picture quality while they wait for regulators, broadcasters and production studios to catch up. • Photo Enthusiasts and Certain Types of Businesses Can Benefit from 4K Today—As Sheppard points out, there may not be much commercial 4K content to watch just yet, however most high-end cameras can take 4K video, and even cell phones can take 4K pictures (above 8 megapixels). If you want to display these photos in their true glory, you need a 4K screen. Businesses that need to display photos in the highest resolution possible on their digital signage—such as graphic studios, photography and wedding-photo studios, commercial photographers, interior designers, architects, restaurants—could gain a competitive edge with 4K screens in their premises. "Independent CE retailers shouldn't overlook this market," advises Sheppard. RO Ray Aiello Consumer Electronics Trends Ray Aiello Purchasing Manager Electronics Cantrex Nationwide THE 4K TV DILEM MA

• Cover