The rise of the big screen market, can save the color TV manufacturers in the water?


The strong rise of the big-screen market means what is meant by color TV manufacturers who are deeply trapped in the channel of “increasing revenue from non-increasing revenues”? What will be the new benefits to the color TV industry, vendors, and users?

Last week, I saw a news item in the color TV industry, saying that "Since June this year, Hisense's share of sales in the high-end TV market of 55-inch and above has surpassed Samsung to become the new king in the high-end market for large screens."
In fact, local color TV companies headed by Hisense, TCL and Skyworth as early as a few years ago have already seen growth opportunities and space hidden in the big screen market. It has also been promoting market competition from the 32-inch, 42-inch small screen to the 55-inch, 65-inch screen market competition.

However, due to historical reasons such as the lack of core technologies and the competitive landscape of the enterprise market, the “five flowers” ​​of the color TV industry in China has been firmly dominating the market for the entire Chinese color TV market for decades. The big screen market has been "absent." Samsung, Sony and Sharp are regular customers.

Then, as Hisense began to surpass Samsung to become the dominant player in China's color TV market, it will not set off an upsurge of the collective color TV industry collective campaign. Similarly, for the entire TV industry, what new changes will occur due to the sudden emergence of the big screen market?

Status: Strong growth in the big screen market

Faced with the overall performance of the entire color TV market this year, the growth of the large-screen market can be said to be quite strong.

According to the monitoring data of the LCD TV offline market from Zhongyikang in the first seven months of this year, the 55-inch retail sales and retail sales increased by 78.73% and 34.89% respectively in July this year. The 65-inch retail sales and retail sales increased by 82.88% and 33.67% respectively year-on-year.
In the first seven months of this year, 55-inch retail sales and retail sales increased by 60.25% and 22.87% respectively year-on-year. 65-inch retail sales and retail sales increased by 79.99% and 29.06% respectively. Retail sales and retail sales above 85 inches increased by 92.03% and 33.79% respectively year-on-year. The retail volume and retail sales of the 55-inch or larger ultra-screen TV market increased by 43.17% and 11.9% respectively.

Compared with the strong growth of the large-screen market, in the first seven months of this year, the total retail sales and retail sales of LCD TVs increased by -5.28% and -13.90% respectively year-on-year, resulting in volume, price, and weakness.

Inflection point: commercial secret behind big screen

The large-screen growth brought to the color TV companies is a new round of “increasing sales, increasing profits,” and in particular improving profitability.

TV companies pointed out that grabbing the big screen market is mainly to solve the problem of profitability and improve profitability. At present, 32-inch is basically unprofitable, while 42-inch is flat or marginal. Only large screens with a size of 55 inches or more have profits.

At the same time, for the attractiveness of consumers, large-screen technology innovation has more room for greater innovation and experience. For example, technologies such as 4K, 8K, quantum dots, and curved surfaces do not have meaningfulness and value in the integration of large screens, such as 32-inch small screens.

Market data shows that the average offline retail price of domestic branded TVs in July this year was 2,872 yuan, while the average price of domestic brand TVs in the first 7 months of the year was 2,886 yuan. If we integrate the TV sales price of the online e-commerce platform, the average price will at least be pulled down by 200 yuan -300 yuan.

In other words, if there is no big-screen market to pull, the average price of domestic color TV brands will be pulled down early to about 2,000 yuan, it will be a loss of the entire industry. As a result, companies simply do not have the ability to invest in product research and development and innovation.

In the era of color TV industry in the CRT era, because the average unit price was too low, it led to industry-wide losses, especially the huge losses of some industry leading companies. In the recent 10 years, the average price of color TV products has declined rapidly. If the screen size does not increase, it will not be able to resolve the industrial system risks caused by the decline in the average unit price.

As of July of this year, the market retail volume and retail sales of 55-inch and larger large-screen and large-screen TVs have reached 31.1% and 54.13%, respectively. From this, it can be seen that the large screen has a significant effect on the sales volume of the local color TV market. It is also a steady increase in the proportion of the large-screen market. In the first half of this year, Hisense Electric's operating profit increased by a significant 18.53% year-on-year, which is better than the industry average.

Prospects: The market space continues to look promising

The performance of large-screen products in the color TV market is just a beginning. The market space in the future will continue to be bullish, especially for local companies.

The growth momentum of the big screen is mainly due to the continuous improvement and improvement of the consumer market, environment and demand. In recent years, the rapid development of the real estate industry, especially the dramatic improvement of the family's living environment. As early as 3 years ago, China's per capita living area has exceeded 30 square meters. This has led to a growing number of large living rooms, which have spurred consumer demand for large-screen televisions with 55-inch or greater growth rates.

For many local color TV companies, it is also relying on this trend to increase the promotion of the launch of large screen TVs. Since the beginning of this year, the Internet brand Micro Whale has launched a 78-inch large-screen TV, and Sony has introduced a 100-inch large-screen TV. Earlier, Hisense introduced 88-inch, 100-inch, and 120-inch laser TVs in one go. With the large screen of TVs, he tried to create a "this is not a TV but a cinema" experience for home users.

Obviously, the big screen of TV will bring a new impetus for transformation and upgrading to the color TV industry. The color TV manufacturers will continue to profit from the new space. The user will be able to experience the perfect experience from TV to the cinema. The megatrends that benefit all parties!

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