China's television market has once again triggered a storm of price cuts in the near future, which is the result of the acquisition of SHARP by Hon Hai Group According to "Nihon Keizai Shimbun," Gou has made Sharp TV Crazy price cuts in the Chinese market have caused concerns among Chinese manufacturers.
In fact, the Gouhain-based Hon Hai Group has long announced that it will fully reinvigorate Sharp's TV business, with its sales target for FY17 being doubled from 5 million units in the past to 10 million units. Therefore, in the just-concluded China Double 11 promotions, Hon Hai's leading Sharp products set off a storm of price cuts.It is understood that, in an e-commerce platform, Sharp's 50-inch 4K LCD TV, priced only RMB 2,499 yuan, equivalent to NT 11,353 yuan, 45-inch TV is reduced to RMB 1,799 yuan, about NT 8,173 yuan, which is almost half the price of the same model in Japan.
For Hon Hai's practice, the Nihon Keizai Shimbun quoted an industry official as saying that Terry Gou's aggressive off-price move in the Chinese TV market has worried Chinese manufacturers and complained that Sharp's price cuts are far too small However, in order to improve sales of Sharp TVs, Gou has been active in November early he visited the Chinese Suning Group, as well as Japan's home appliance chain retailer Laox's parent company, which also reached with China Suning 3 The annual sales agreement of RMB50 billion aims to build alliances to promote sales of Sharp products.
The report further pointed out that Gou's strategy is to use any opportunity to sell Sharp TVs .In August, Dai president Wu was once said that Sharp is expected to achieve the goal of doubling the sales of color TV sets this fiscal year.Obviously, Sharp is currently Hon Hai Group's companies, with the strong support of Gou and Hon Hai, can leverage Hon Hai's strong marketing resources to sell their products.
The report quoted Japanese financial analysts as saying that at Sharp's television business, Hon Hai Group gave up profits in the early stages in pursuit of a substantial expansion of market share-based, however, in the later, Sharp will be other Not long ago, Sharp also released a 8K resolution LCD TV, and Gou also high hopes for the future sales of 8K technology television, and that 8K TV will be the mainstream of the future market.
However, although Sharp's positive moves to make sales progress, but also took some risks, because analysts pointed out that the current global TV market is very limited room for growth in order to Sharp's aimed at the Chinese market, the past There have been many cases of shrinking sales, and manufacturers increasingly meager profits.
In addition, in the past Sharp is very optimistic about the LCD panel business, and carried out billions of dollars in large-scale investment.However, with global and Chinese LCD panel manufacturers to expand capacity, the global LCD panel prices fell sharply, affecting Sharp capacity utilization Rate and profit, making Sharp thus plunged into difficulties, and eventually was Hon Hai Group to 3.5 billion acquisition of the price, which is not far from the Kam.
Analysts also pointed out Sharp at this stage in addition to the existing LCD panel production capacity, in December 2016, Hon Hai, Sharp and Guangzhou municipal government also started to invest tens of billions of dollars, is expected to build a 10.5-generation LCD panel factory in Guangzhou In addition, Hon Hai also decided to invest in the next-generation LCD panel plant in Wisconsin of the United States in 2017, together with the construction of a TV assembly plant in the future. This will lead to the resurgence of oversupply in the future and make everyone Worries, therefore, Hon Hai Group, the ongoing big move, though to make Sharp rebound brand strength, but it is not behind the hidden risks, the need for continued observation of the future.