TV sales grow with the World Cup, but half of Colombians cannot finance them
The market faces structural barriers that affect access to purchases of these devices. Photo: iStock
TL;DR
- Colombian commerce expects a significant increase in TV and technology sales for the 2026 World Cup, potentially between 30% and 50% during match days.
- Previous World Cups, like Russia 2018 and Qatar 2022, have historically driven substantial sales of televisions.
- Recent trends show a strong growth in TV and sound equipment sales, exceeding the general retail average.
- Economic challenges, including cautious consumer spending due to inflation and cost of living expectations, temper the sales potential.
- A major hurdle is the limited access to formal credit, with only 35.5% of the adult population having access, and around half of the country lacking effective financing mechanisms.
- Consumer demand is shifting towards larger screens (50-65 inches) and advanced technology, increasing the average purchase price and reliance on financing.
- The growth in credit card usage has slowed, and credit as a percentage of GDP has decreased, indicating a more restrictive financing environment.
- Point-of-sale financing models, such as 'buy now, pay later,' are gaining traction, particularly among younger demographics, as an alternative to traditional credit.
- These alternative financing tools can drive significant sales increases for retailers, especially in high-value categories like technology.
- Retailers are adapting by offering direct financing and installment payment options to overcome the economic barriers for consumers.