Sales of LCD TVs in China is expected to hit 24 Million in 2009 on account of household electronic subsidy scheme and higher demand for replacement of CRT TVs.

According to the projections of DisplaySearch, as much as 24 Million LCD (Liquid Crystal Display) TVs are likely to be sold in China in 2009, representing an increase of 10 Million Units from 2008, as reported by Taipeitimes.

It is estimated that around 5 Million Units of LCD TVs sold during January-March 2009. Considering this, the projection looks quite attainable. Also, an annual sales increase of over 10 Million Units as well as a growth rate of 84% for a single year both are stupendous figures. 

The LCD TVs sales in China is mainly soaring on back of household electronic subsidy scheme. The increasing demand for replacement of traditional CRT (Cathode Ray Tube) TVs is also assisting the growing sales of LCDs.

The aforementioned scheme, according to which farmers are to receive attractive discounts on purchase of electronics, boosted the sales of flat-panel TVs in the Chinese mainland.

Moreover, towards the final quarter of 2008, domestic brands of China started gaining popularity, which enabled these brands to capture upto 78% of the country’s LCD TV market. On the other hand, their South Korean and Japanese counterparts witnessed a decline in their market shares. This is mainly due to the stronger support of Taiwan’s panel makers for the local brands of China.

A recent report “Chinese Consumer Electronics Market till 2011” from RNCOS states that China ranks as the most lucrative consumer electronics market among all the emerging economies, from the perspective of investment. According to the report, TV will witness the highest sales volume, followed by washing machines, in the home appliance category of electronics in next few years.

In the meantime, domestic Chinese LCD makers are investing substantially in producing new LCDs to meet the soaring demand of LCD components for PC monitors as well as TVs. Chinese home appliance and TV vendors are likely to negotiate with the LCD panel makers of Taiwan for lower costs and stable supplies.

According to a Research Analyst at RNCOS, “The continuous decline in the prices of LCD TVs alongwith rising level of disposable income is just enough for Chinese consumers to spend significantly on these goods. So, it can be said that the future of LCD TV industry remain bright in China.”

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