Sat, Nov 09, 2002 page10

• Price cut triggers sell-out of plasma TVs

  BIG BARGAIN Buyers quickly cleared out two major retailers' stocks of LG Electronics' 42-inch plasma TVs when the retailers cut the high-tech product's price by 33 percent

  • By Bill Heaney / STAFF REPORTER
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  The early bird gets the worm. Or at least that was the case for buyers of large flat-screen TVs in Taipei yesterday.

  Two stores selling Korean-made LG Electronics' 42-inch (107cm) plasma TVs saw their shelves cleared yesterday after major electronics retailers Tsann Kuen 3C (燦坤) and Chuan Kuo (全國電子) went head to head in a price war that drastically undercut the manufacturers' recommended selling prices.

  Unlike liquid crystal displays (LCDs) which are limited in size, plasma TVs are digital televisions with flat and wide screens that can measure up to 50 inches (127cm) across. They can be mounting on living room walls in much the same way as paintings.

  Yesterday morning Tsann Kuen 3C and Chuan Kuo simultaneously offered the plasma TVs for NT$99,000 each -- NT$50,000 off LG Electronics' suggested retail price.

  Store owners were delighted with the rush of buyers. "We sold out by 11 o'clock this morning," said Lee Tsan-hung (李燦宏), manager at Tsann Kuen 3C's store on Taipei's Nanking East Road.

  However, stocks of the cut-price products were limited, and Tsann Kuen had only 75 units on hand, thwarting many eager bargain hunters. "I'm very disappointed because I wanted to buy one, but they're all sold out," said a shopper in her early 30s surnamed Lee.

  "I wanted to buy one before but they were too expensive. When I heard the news yesterday I rushed over here," said William Lin (林崧山), another disappointed shopper at the Nanking store. "Now there are none left."

  High prices have been a major factor hampering plasma-TV sales in Taiwan. In Fnac's flagship store on the corner of Taipei's Nanking East Road and Tunhua South Road, a 50-inch Sharp plasma TV will set buyers back a whopping NT$529,000. The store's cheapest model is a 42-inch locally made Sampo brand, which sells for NT$198,000.

  Others are not put off by price. "The quality of the plasma screen is so much better than that of regular TVs. It's like having a movie theater in my living room. I love my plasma TV and I don't care about the price -- it was worth it," said Robert Zu, an early convert who paid the equivalent of NT$425,000 for his 50-inch Pioneer plasma TV in January this year.

  While the shops may be happy about the pick-up in plasma TV sales, the manufacturer threw cold water on any future cut-throat pricing yesterday.

  "We can't accept the retailers selling at such low prices," said Lee Chia-hwei (李嘉惠), marketing manager at LG Electronics in Taipei. "Our inventory is depleted now, and we don't know when we will have new units in from Korea."

  The standard price of LG's 42-inch plasma TV is NT$199,000. In an attempt to gain a larger market share, LG Electronics had asked stores to sell their plasma TVs at NT$149,000 each. The special price would be valid from the beginning of November through the end of January.

  Late yesterday afternoon the dilemma was resolved in LG Electronics' favor. "Our chairman has already spoken to 3C and Chuan Kuo. They have agreed now that they will go back to selling the products at NT$149,000 each," Lee said.
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