Retail Observer

RETAILOBSERVER.COM MAY 2016 50 Doug Wrede Director of CE for Nationwide Marketing Group W ith so many TVs to choose from, how does the customer ever decide which one is right for their application? This decision used to be a much simpler one when screen size, technology, format and innovation weren't so complicated. Is there a way to simplify the buying process to avoid buyer's remorse? SCREEN SIZE We like our TVs big—the proof is in the numbers as the average screen size will reach 42.6" in 2016 up from 38.7" 3 years ago in 2013. In addition, 46" and larger TV sales are also forecasted to grow 6%, making up approximately 35% of the total units projected to be sold in 2016. While we'd all love to be able to fit that 105" in our room, there's a good chance you don't have the room or desire to pay the price tag (~$99k). So what's the general rule of thumb on size? Assuming you don't have any dimension restrictions due to cabinetry or wall space, most people sit about 9ft from their TV. Without getting too technical and in keeping it simple, the recommended distance is no closer than 1.5 times the screen diagonal, or 0.667 times your seating distance. By taking the average distance (9ft or 108") and multiplying it by 0.667 gives you an ideal screen size of 72" for the room layout. TECHNOLOGY We've seen TVs evolve from CRT to DLP to LCD, Plasma and now OLED hits the market in an affordable set in 2016. With Plasma technology being the latest format to exit the market in mid-to-late 2014 it leaves LCD and OLED to carry the burden forward. LCD technology gained significant traction in 2007 when it became more affordable and hasn't looked back since representing nearly 99% of all units sold today. LCD however, does have its shortfalls and if history is any indication may not reign supreme as the leading technology going forward. LCD has been criticized for leaking light through its back panel preventing black levels from achieving their best picture. Enter OLED, which hails its technology as being able to correct this flaw delivering the deepest black levels of any picture. While representing less than 1% of sales in 2015, OLED sales are projected to grow in access of 215% in 2016. As OLED becomes more affordable, the customer will ultimately decide on which format (LCD vs. OLED) delivers the best picture. FORMAT Seemingly a flat TV would be considered the obvious and only format to watch TV, but curved has become more than just a buzz or trend as suppliers grow their product offerings in the marketplace. Curved TV has been marketed as delivering a more immersive and enhanced depth of picture, wider viewing angle, superior contrast and simply just looks cooler. It's also been criticized for exaggerating reflections in a room, having only an ideal picture from dead center of the TV, expensive and not a good application for hanging on a wall. Only time will dictate the fate of curved TV and the customer's willingness on whether or not they see and/or find value in this format. INNOVATION After screen size, I'd like to think it's a matter of UHD vs. non-UHD, smart vs. non-smart. Because not every TV set available today is UHD compatible and with very limited content, customers still have the choice of not paying for this technology. Albeit the average price today has fallen below $1k from nearly $4k when UHD first hit the market; there's still some savings in not upgrading. Smart vs non-smart is also a choice the consumer gets to make today. Whether they want to cut the cord or simply have apps available such as Netflix and YouTube to stream on their set, they still have the choice. We are however, not too far distant from both of these features being a given with production costs coming down, both UHD and smart will likely be in every set vs. having to pay a premium. UHD panels are expected to top 40% of all TV shipments in 16' and 52% respectively with smart features. While it's not as simple as it once was, today's choices offer a menu of features and benefits customizable to your liking. Arguably, it all comes down to personal preference. Doug Wrede Consumer Electronics Trends RO TODAY'S CONSUMER TV PURCHASE DECISION

• Cover