2007 becomes a turning point for demand of TVs – interview with Mr. Masatsugu Teragawa, GM at SHARP

The market for LCD TV is brisk. For the preceding period, there were negative forecasts about LCD sales because compared with last year, there was no attractive event to boost the market demand such as the World Cup. However, according to the sales data of “BCN Ranking”, LCD sales were up 121% from a year earlier in June. We interviewed Mr. Masatsugu Teragawa, General Manager at SHARP, which keeps a top share of the LCD TV market with AQUOS, about the background of strong sales and an outlook of the future market trend.

- How do you see the demand of LCD TVs in Japan during this period?

We could achieve good sales. Last year, the World Cup boosted consumers demand and leads to good sales. Through that, the transition to larger monitor sizes went smoothly. On the basis of this trend, we see this year as the turning point of consumer demand. We changed our LCD TV line-up to “R” series and “D” series. The “R” series targets the consumers that want to replace their TVs. The “D” series targets people who want a secondary TV. We think this separation can get positive value from our customers.

- How about the following period?

We set the global sales target for Fiscal Year 2007 at 9 million LCD TVs including, 3.2 million in domestic sales. To be sure, there may be some differences with actual sales because 9 million is just a target. In the Japanese market, the 32” inch model is unexpectedly the most popular product in the “D” series, which anticipates the secondary TV needs of the market. This fiscal year, the contrast between three kinds of needs, the needs of 20” models, 26”-32” models and 46”-52” models will become clearer.

- What do you think about the future market trend of flat-styled TVs?

It could have some movement between 2009-2010 because of the shift in broadcasting style from analogue to digital. In 2006, 9 million flat-styled TVs were shipped in the domestic market and it may reach 10 to 12 million in the future. Before the end of analogue broadcasting, we may have to sell 100 million flat-styled TVs.

- How will the Beijing Olympics stimulate Japanese consumer trends?

The Beijing Olympics will accelerate consumer demands from next March or April. If there is no special event, domestic demands of TVs may stabilize at a little less than 120% compared with 2007. However, the Olympics can stimulate the market growth at the same ratio as this year. This can be called the “Olympic effect”.