World Cup Expected to Bolster TV Shipments for Brazil

Santa Clara, Calif., July 22, 2013-- After two years of declining TV shipments for Brazil, the 2014 World Cup is expected to support a double-digit rise in shipments, according to the Quarterly Brazil TV Shipment and Forecast ReportNPD DisplaySearch. Q1’13 TV shipments for Brazil declined 11% from a year ago to 2.1M and the forecast is for shipments in 2013 to decline 2% Y/Y. The World Cup will be the first of several boosts to the industry over the next few years, with shipments rising 18% in 2014, as the World Cup begins. The final transition from analog to digital TV broadcasts in Brazil by the end of 2016 will also keep demand from falling in 2015 and, in conjunction with the Olympic Games in Rio de Janeiro, will slightly increase demand in 2016.

“Brazil will host the World Cup in 2014 and the Summer Olympics in 2016, and both are expected to be strong drivers of demand,” said Paul Gagnon, director of North American TV research for NPD DisplaySearch. “The country is also firmly in the middle of a transition from analog to digital TV broadcasts, which has proven to be a driver of growth for TV shipments in other regions.”

Figure 1: Brazil’s TV Shipments, LCD TV and Total Market

Source: NPD DisplaySearch Quarterly Brazil TV Shipment and Forecast Report

The current softness in TV shipments for Brazil, which accounts for approximately 5% of global TV shipments, reflects the recent weakness in retail sales due to rising inflation and economic pessimism. CRT sales are declining at a rapid rate, but LCD TV shipments were also down in Q1’13. Overall demand so far this year has been soft, but growth in large screen sizes (46” and larger) remains strong. This indicates that upper-tier consumers of higher-priced products may not be feeling the economic pressures as much as others. Korean brands, led by LGE and Samsung, continue to dominate sales. They comprised nearly 50% of all Brazilian TV shipments in Q1’13.

“Brazil is a leading manufacturing hub in Latin America and one of the most dynamic and rapidly growing TV markets in the world. However, the market is very event driven and cyclical,” Gagnon said. “Upcoming major sporting events in the country, combined with strong economic progress, should lead to increased business opportunities in the television market.”