According to the VuMa Touchpoints 2020 report, household adoption of TVs in Germany is very high. Among German households, 96.8% own at least one TV. Interestingly, the majority of households (48.6%) only own a single TV, while 35% of German households own two televisions and 14.2% have more than 3 TVs in their homes. These figures are below the European average.
Looking at Kantar’s Digitalisierungsbericht 2019 report, only 56% of German households own a Smart TV. However, only two-thirds of those are connected to the internet and capable of connecting online. This means that more than half of German households do not have a connected TV. Including connectivity through streaming devices such as gaming consoles and media boxes, TV connectivity in Germany still only reaches 51% of households.
Opportunity for Sales
German households are equipped with TVs but there is still space for the category to grow both in increasing the number of TVs per household, but also replacing older TVs with new technology.
How did German traditional retail address that opportunity during lockdown and re-opening?
Let’s take a look at some insights from our latest report on TV category in Germany covering week 13-18.
During the weeks of 13-18, the size range analysis shows that larger format TVs (60+ inches – 21%) have not been advertised as often relative to other screen sizes. The smaller formats (up to 49 inch), which are typically ideal secondary TVs, account for 37% of promotions. The mid-range segment (50-59 inch) accounts for 42% of promotions within the merchant panel during weeks 13-18. This segment is typically considered the entry size for primary TVs in German households. With many products in this size range advertised for under 600€, these TVs may become attractive to customers looking to add a secondary device to their house.
With that, retailers are targeting customers with promotions that will encourage them to add additional TVs to their homes. With people spending more time at home, many are making their homes more comfortable in terms of entertainment options. Retailers are using this time and opportunity to capitalizing on this unique circumstance.
gap intelligence has served manufacturers and sellers by providing world-class services monitoring, reporting, and analyzing the 4Ps: prices, promotions, placements, and products for more than 17 years. We recently announced our international expansion. Check out our insights on our gap intelligence GmbH LinkedIn and email us at info@gapintelligence.com to learn more.
