Information Bulletin No.29

Imports of Color Television Sets Exceed Domestic Production


August 25, 1995

As a result of a large increase in the number of imported color television sets and a decline in domestic production, Japan's monthly imports of color TVs exceeded domestic production in June for the first time since statistics began, according to the Electronic Industries Association of Japan. Stimulated by the continuing increase of overseas production by Japanese manufacturers, Japan's annual imports of color TVs exceeded exports on a quantitative basis in 1993. Now it might not be long before annual imports exceed domestic production, too.

According to the EIAJ, imports reached 614,600 units in June, up 12.0% over the same month in the previous year, while domestic production fell 27.1% to 601,700 units. As a result, imports surpassed domestic production by about 13,000 units in that month. The main sources of imports were, in order, Malaysia, South Korea, Thailand, and China.

The same trend was evident in the first half of the year, from January to June, when imports rose 22.5% over the same period in the previous year to reach 3.3 million units and creep up on domestic production, which dropped 14.1% to 4.0 million units. The reason for this trend was the increase in imports by Japanese manufacturers operating overseas (so- called "reimports") of ordinary TV sets (with a vertical- horizontal screen ratio of 3:4), for which stores in Japan engage in intense price-cutting competition.

Until now Japanese manufacturers have supported domestic production by shifting production at their domestic plants to new wide-screen TV sets (with a vertical-horizontal screen ratio of 9:16). Since earlier this year, however, many manufacturers have turned to overseas production and reimports even for these products, thereby giving an added spur to the import of color TVs.

Meanwhile, imports of video tape recorders reached 333,000 units in June, a 2.5-fold increase over the same month in the previous year. Although this figure still amounts to only about one-third of domestic production, imports of VTRs have been increasing recently at a brisk monthly rate of 2-4 times, so the gap can be expected to close rapidly from now on.

(The above article, edited by Japan Echo Inc., is based on domestic Japanese news sources. It is offered for reference purposes and does not necessarily represent the policy or views of the Japanese Government.)