Retail Observer

RETAILOBSERVER.COM FEBRUARY 2016 50 I n a business that's faced many headwinds in prior years and for the foreseeable future, how or where do you find the bright spot(s) or opportunities? I'm of course referring to the TV business and the endless pursuit to find the balance between delivering sales and profits coupled with remaining competitive in today's marketplace. OLED aside, we've seen industry growth with strong shifts in UHD sales, as well as curved, connected and larger screen TV's, but does OLED now become a part of that conversation? Understanding the answer to this requires a closer look at the foundation and resources to deliver on this technology. OLED SHIPMENT FORECAST Similar to the rapid growth of UHD shipments over the last few quarters, OLED shipments are no longer a blip on the chart and are estimated to grow over 200% in '16 vs. the prior year and again over 100% in 17' in the North America market hitting the ½ million (1M globally) unit mark by the end of '17 (see chart). The anomaly of this hangs over the technology in which yield issues and costs have been a known challenge limiting the upside of growth. Today, LG is the sole panel supplier for OLED in the U.S. market while it expands its reach to Chinese brands and Panasonic Europe. LG will continue to invest an estimated $1.6 billion to build a new OLED production facility in South Korea targeting the first half of 2018 to begin production. This facility is confirmation of sorts in the future LG is staking in OLED and will produce mainly large-size OLED TV panels alongside a few other small screen display categories (i.e. watches). OLED MARKETING & CONSUMER AWARENESS If they build it, will the consumer come? Early indications to this question are trending towards yes as OLED appears to be peaking the interest of consumers. Whether it's LG taking over Grand Central Station in NY as an official sponsor drawing attention to more than a million commuters, tourists and travelers to see and experience OLED or the numerous positive reviews from the media and industry experts praising its great picture quality. CNBC selected an OLED model as their top 10 gift gadgets while PCMag.com and others gave positive reviews on picture quality to include great black levels and depth of colors. AV experts have also begun to weigh in comparing OLED to Plasma which once reigned supreme in the video enthusiast world. In a recent study, nearly 30 AV enthusiasts participated in a side-by-side comparison where both technologies were professionally tuned, OLED not only won but received 88% of votes tallied. On paper, it appears OLED makes an argument to have an opportunity to succeed in the marketplace in the eyes of both retailer and consumer. Numerous factors still remain on the table with cost and yield issues as well as price conscious consumers but by all indications, consideration for OLED should not be ignored. Sources: IHS, Display Search, Gap Intelligence OLED: WHAT CAN IT DO FOR THE TV MARKET? Doug Wrede Consumer Electronics Trends Doug Wrede Director of CE for Nationwide Marketing Group (Sources: IHS, NPD, Display Search) RO Units (000's) North America

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