The World Cup this summer is expected to drive flat panel TV growth in Brazil. According to a report by DisplaySearch
, the TV market in Brazil has historically experienced a surge in TV demand every four years when the World Cup takes place.
Since 1996, DisplaySearch has been recognized as a global market research and consulting firm specializing in the $770 billion display supply chain, as well as the emerging photovoltaic/solar cell industries.
DisplaySearch provides trend information, forecasts and analyses developed by a global team of experienced analysts with extensive industry knowledge and resources.
Over 9 million TV units were shipped in Brazil during 2009.
As per DisplaySearch LCD TV shipments are expected to grow 68% in 2010, with total shipments of flat panel TVs growing 51% for the same period.
According to the company LCD TV shipments for the region will outpace CRT shipments for the first time this year.
This forecast is basically built on the increase in consumer purchasing power and better credit availability, which have improved consumer markets in the country, especially the market for durable goods.
“The TV remains an important entertainment source for the Brazilian population, with TVs outnumbering refrigerators in households. Both the World Cup and the transition to LCD TVs will result in strong shipments for the region on 2010—making it an attractive investment opportunity for the TV supply chain,” said Paul Gagnon, DisplaySearch Director of North America TV Market Research, in a statement.
Gagnon said that however, Brazil has some unique barriers to entry that make understanding the local business environment critical to profitable success.
With local manufacturing facilities, Sony, Samsung, LGE and Philips (News
) are the dominant TV brands in Brazil. These companies have established local manufacturing plants in an effort to take advantage of tax incentives that make it prohibitive to import TVs.