Boosted by increased consumer confidence and a multitude of new product introductions, LG Electronics South Africa reported record sales for the first quarter of 2004.
"Audio/ video has produced some extraordinary figures for us, with most of the product line unit sales increasing by over 500% over the same period last year," says Charlie Kim, Audio/ Video Product Manager for LG Electronics South Africa. "2003 was an exceptional year for us, so the sales we are achieving this year have beaten even our most optimistic forecasts."
"To examine each of the product lines individually, 2003 was the first year where we saw the retail cost of entry level DVD players drop below the price of a top end VCR. This means that many first time buyers are evaluating the DVD option than before. However, this is not to say that this means the end of the VCR. Our sales are testimony to that, with VCR sales still on the up. The decline in the VCR market will only begin when recordable digital format such as hard drive recorders and DVD recorders become more widely available, and when a single format is universally accepted."
"DVD based Home Theatre`s and DVD Players are becoming the systems of choice, with both boasting year on year unit increases of over 500%. A study conducted by the University of Cape Town/ Unilever institute shows that while income levels are rising, the high level of crime is seeing South Africans spend less on out-of-home entertainment. This means that trying to establish a `Home Cinema` environment in the home will become more common. With all of these factors, added to high consumer confidence and the cessation of Ad Valorum tax on DVD media, I expect sales to continue increasing well into next year," concludes Kim.
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