With music as the first protagonist of the reality version of 'business drama' has been the latest progress.
On the evening of January 4, Coolpad announced that it was informed by Leview Mobile HK Limited that Leview Mobile HK Limited had sold approximately 897 million shares of the Company to Evergrande, accounting for 17.83% of the issued share capital of the Company Cash Consideration 0.9 Hong Kong dollar, with a total consideration of about 808 million Hong Kong dollars (about 670 million yuan).
Upon completion of the transaction, Leview Mobile HK Limited dropped its stake from approximately 1.449 billion shares to approximately 551 million shares and its shareholding from 28.78% to 10.95%, which means that LeTV is no longer a sole shareholder of Coolpad.
Public information, LeTV in June 2015, to hold the cool 17.90% stake for 2.18 billion yuan held, and then 1.047 billion Hong Kong dollars (about 900 million yuan) Cool shares to 28.90%, becoming the largest shareholder. But now, as a response to financial crisis, LeTV had to cash in at a loss price.
For the root cause of the crisis of music as a result, Jiayue Ting had previously replied "Beijing Securities Regulatory Bureau ordered Jia Youting to return to the state responsibility notice" when he said that "Music as the system at the same time layout of the industry too much, the company's management capabilities did not keep up in time, leading to company management The situation deteriorated. "He felt guilty, blamed and apologized for the ensuing series of negative effects and losses.He also admitted that in the face of asset freeze, business stalled, more than 10000 employees were forced to dissolve, the company can only do is By selling assets to repay.
But he still manages to find a solution, but LeTV, which he founded alone, has long been seen as a premium asset for LeTV and has become the victim of a collapse in the corporate brand system, and even sacrifices to competitors Complete.
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Liu Rui (not his real name) is one of thousands of employees who left LeTV and also a new middle-level manager of the original music.
He has tried to stick, but the company's development is not 'stick' can be solved. 'The size of the enterprise team and the size of the product market to match, the decline in TV sales do not need to match so many people.' ' Late in the crisis, there was no downsizing in the company. A large number of employees chose to take the initiative to leave.
Nevertheless, a number of LeTV employees, including him, do not think it is a pity that LeTV's business itself is a problem. Liu Rui believes that if not because of the overall strategy of LeTV, especially in the handset and automotive business, Style of development, music mode has a certain breakthrough and innovative.
In the music as the headquarters can see the TV business real-time user data diagram, in this map, each boot music user is a lit little star, you can see how many users boot, what to look at, Specific to see which actor's film. Through data analysis, music will give these users 'tagging'.
If a user watches children's programs on weekdays and during work hours, it must be a family with children, and there are elderly or babysitter caregivers in the home. If the soap opera is viewed on weekdays, the user is likely to be a housewife, Not particularly large if the TV is usually off, shut down after get off work, in all likelihood is office workers.If you watch sports after work, then he must be a sports fan ...
Like this label, there are a total of 2,000 music videos, with the continuous refinement of labels that enable LeTV to capitalize on its operating users and to provide advertisers with accurate advertising on the basis of this, but there is still a huge gap between the goals of LeTV To know that Netflix, often called the American version of "Music," has 100,000 tags and has a high degree of accuracy in ad push.
The ability to manage user data is precisely what Rui believes in LeTV's TV model. "If the video content platform is in the hands of other companies, it is hard to achieve real user operations."
As a result, Liu Rui felt that it should not be peeled off from LeTV's entire business system.
LeTV's success relies on the LeTV ecosystem and can not be dragged down by the entire system because of its outstanding single business. "Without the backing of music, sports, cloud platforms and other business units, LeTV is struggling to achieve rapid expansion." Liu Rui said.
Can feel that, even if the music has left, even if the outside world criticism of music, Liu Rui still the 'old club' feel good.
Liu Rui experienced a rapid ramp-up from 2015 to the peak and then to "fall." He continued to stress that the "fall" of LeTV was more attributable to the negative impact of LeTV's brand on market share This run from banks, upstream and downstream industry chain, sale, public opinion and other aspects, but the music in the concept and mode of promotion of the industry, Liu Rui think LeTV still have the advantage.
'LeTV mode is market-proven and can be profitable in the future, but the company has problems in the development process even though Sun Hongbin is very optimistic about the TV business even after taking over LeTV,' said Liu Rui.
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But the market is extremely cruel.
Informed sources told interviews with news reporters that the current market share of LeTV dropped sharply by two-thirds over the same period of last year. According to data from Zhongyi Kang, the overall online sales of online TV brands decreased from the same period of last year from January to July 2017 6.9%. The sales volume of LeTV Super TV decreased by 55.5% as compared with the same period of last year, with a 47.1% decrease in sales.
AVC online monitoring data show that the second quarter of this year, 55-inch color TV best-selling models in the rankings, the music super 4 X can also account for 4% of sales, but by the 35th week, a single TV During the 11th period, millet TV accounted for the top of online sales list, followed by Sharp and Hisense, LeTV nor into the top 10. Once, as the number of consecutive months accounted for Le TV Top, to many traditional TV brand brought no small pressure.
According to the data disclosed by LeTV's 2016 Semi-annual Report, as of June 30, 2016, the total sales of LeTV SuperTV reached 7 million in the three years listed, and according to the news reporter of the interface, 1 million units are generally able to 'stand still' in the industry, , Sales reached 3 million units that have a certain influence on the industry, and more than 5 million units that have the ability to impact the market the first three?
However, from the end of 2016, the constantly exposed capital chain will inevitably spread to the television business.
'The upstream and downstream supply chain run-down is very fatal, including raw material providers, after-sales partners, logistics partners, are drastically reduced the payment cycle, or require payment before re-supply.' When there were no false letters, the six-month accounting period was normal when the television production reached 5 million units, but the loss of discourse caused the loss of the right to speak and the corresponding reduction in the bargaining power.
Reflected to the terminal level, originally wanted to buy music TV users instead choose other brands, they are concerned that the music of the turmoil will affect normal product production and after-sales service.
A Jingdong insider who is familiar with the sales and marketing of LeTV said that as a result of the music crisis, Lotto's search volume in Jingdong is only one-tenth of that during peak periods. Users' distrust of the brand has led to a lack of trust in the product.
'Many channels have given up and LeTV cooperation, but Jingdong platform LeTV TV will be normal storage shipping, some promotion nodes will take the initiative to push, of course, the intensity can not be compared with the previous' The above people think that now for music and Words, do not block it is already 'save' them.
While the United States and GTV as the basic cooperation has stopped.GTVA Zhang Tao, general manager of the interface to the news reporter said that through LeTV things, many consumers see one thing - television is television, the Internet does not change the characteristics of television , The content is not more valuable than the hardware.
Even music's most important foundry partners Foxconn and Compal have also been exploded evacuated as a new music as a subsidiary of LeTV, LeTV's new core business is the smart TV. New also changed its name to the new music as a visionary, aimed at eliminating the negative brand of the past.
Affected by the music, the Internet TV market share are declining sharply, which also gave the storm, micro-whales and other Internet TV brand a deadly blow.
Feng Xin, founder, chairman and chief executive officer of Storm Group, said at an event hosted by Titanium Media that in 2017, the financing has been 'the toughest and the longest one' since his start-up so far.
Feng Shui himself is often compared with Jia Yunting, which brings a lot of trouble to the storm.Feng Xin admits that the upstream and downstream partners, including the supply chain and channels are Clearly question the storm mode, the storm needs to be constantly explained, emphasizing what they and LeTV are different.
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Everything tends to be double-sided, and the Storm is enjoying the dividends of market share LeTV has given up when it is criticized by the model.
According to Feng Xin, sales of Storm TV increased substantially by 80% in 2017 over 2016. During the 11th of this year, Xiaomi ranked No. 1 in terms of TV sales, sold nearly 200,000 units and storms hit more than 100,000 units. There are fifty or sixty thousand units.
It is noteworthy that, although Storm is the same as the Internet TV brand, but most of the television are sold through offline channels.
Data provided by Storm showed that in the first quarter of 2017, Storm TV sold 235,000 units, dropping by almost 120% in the second quarter to about 120,000 in the first half of 2017. Storm TV sales accounted for about 70% of the total sales in the first half of 2017 , More than 6,000 retail stores, mainly using the mode of cooperation with agents. Storm TV is expected next year, offline channels will be expanded to 10,000.
There are a lot of offline franchisees that come from Le Bento stores. "There are times when store photos are taken, and you can see music videos underneath their containers, just replacing the overhead LOGO with a storm." Storm TV official in charge that the dealer has not had too many choices, Internet TV players only the storm, millet and micro-whales.Micro whales face more pressure than the storm, it is learned that the brand in 2017 but sold dozens Million TV.
However, the growth of the storm is relatively speaking, and the real beneficiaries of LeTV's fall are Millet and Sharp, and it can also be understood that LeTV's market share has largely been split between Xiaomi and Sharp.
According to the data from Yikang, millet's online sales grew 91.2% YoY in January-July 2017 year-on-year.
According to the interface news reporter, millet has been crazy in the last six months to open a physical store.A Xiaomi an internal staff said that in the second quarter of 2017, offline millet home millet television to bring 90% growth.
Not only that, millet won the sales of Lynx TV category during the double 11 in 2017, also swept the sales of the first four dimensions of the mainstream segment of 32 inches, 43 inches, 49 inches, 55 inches in the subsequent Orville Network released "China's TV market double 11 report", millet TV and further solid sales online first place.
According to the 46th week online data monitoring of Orvital Cloud, millet TV sold 441,000 units from November 6 to 12, 2017, with a market share of 15.2% and a year-on-year growth rate and a sequential growth rate of 491.4% And 606.8%.
'The millet television shipments of 1.5 million units in the first three quarters of 2017,' growth 'in all TV brands can be described as' dazzling. '' Turning to the millet to replace the music as the 'host' reason, Ovid consulting cloud network vice In an interview with the press interviewer, Dong Min, president, said that after 4 years of development, millet television has a relatively good supply-chain management capability. When the panel price goes down the channel, millet can take advantage of its own business model to take the lead in price reduction in the industry , Sales also naturally rapidly rising.
Zhang Tao, GOME TV, believes that there is no absolute necessity for the market share of millet to rise and LeTV's fall. "Not only do millet sell well on television but overall product performance is very good, and they do not specifically emphasize that they are Internet TV brand, just an Internet company doing TV only.
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Unlike millet, another 'snatch' Sharp is an out-of-the-box traditional TV brand but Foxconn, led by Terry Gou, has given this 100-year brand a totally different style of play.
According to Zhang Tao analysis, before Sharp took over Foxconn Sharp, Sharp domestic sales, marketing and other links are completed by the Sharp commerce company, from the factory to the terminal sales management supply chain is very long. Foxconn took over, using one of the most simple Mode of operation, the factory shipped directly to the terminal retailers, the use of their own supply chain aspects of the advantages of production capacity, screens and other front-end back all open up. 'Shortening of the middle of the process, making Sharp TV's price than the previous Sharp Business Times Low by 50%.
In terms of cost control, the current Sharp is different from the previous practice, for example, the common practice is to open the mold first, and the cost of the mold is usually directly amortized on the television, which may result in the listing of some TV models may sell for $ 10,000. When the market is only sold for 6,000 yuan.This is because the amortization of mold costs.
However, Foxconn uses a one-time amortization, assuming that they expect a certain model of TV production in 2017 to produce 1 million units, the mold costs will be amortized from 1 million units of television.
In addition, in the past, Sharp will be the brand marketing costs added to each television go, and Foxconn will bear the marketing and advertising costs separately, this part of the cost is not directly related to the price of television. Foxconn hopes Sharp achieved in this way Low sales.?
Sharp's current operating mode is very suitable for online sales, that is, take the high cost performance, less value-added routes, emphasizing practical .Now the Sharp TV SKU number is more centralized, user-friendly choice.Coupled with the long-term accumulation of brand advantage, It is easy to achieve sales growth.'Zhang Tao said that even if there is no music crisis, Sharp will take away some of the share from music as well.
Orville's data show that the first three quarters of Sharp's shipments in the Chinese mainland market was 2.4 million units, an increase of 246%, global shipments of 550 million units, an increase of 62% .To achieve such a result, Sharp used not To a year, while LeTV spent three years.According to Gou's aggressive targets set before, to reach 14 million units worldwide shipments in 2017. Now 2017 has come to an end, but Sharp's goal is still to achieve a Question mark.?
Sharp hurdles in the scale behind the growth, Sharp also faces development bottlenecks.
Zhang estimates that Sharp's online market share will soon reach 30%, but offline accounted for about 10%. 'Sharp online advantage is difficult to reflect online. Online prices are still dominant, but offline Consumers need more personalized, differentiated products, and Sharp's current TV products are not enough to meet this need. '
And Jingdong insiders also believe that Sharp to pull the price from high to low easy, but the opposite is difficult.Sharp want to regain the high-end users, is not an easy task.
At a time when brands of television brands are getting melee, the stammered TV music scene is also looking for a chance to rise again, though this seems hopeless.
On December 26, LeTV released a series of 10 TVs in both New and Lean series at a price ranging from 1899 yuan to 5939 yuan. To this end, LeTV held a series of new tasting events in Xiamen, Nanchang, Shenzhen and Hefei, With a view to regaining the confidence of upstream suppliers and attracting those Leppa partners who have left and remain committed to continue choosing LeTV.
Five days after the launch of the new music video, the new music management committee released an internal letter "Do not forget to embrace the initial challenge - 2018 we move forward," the letter said that the new music TV business restructuring strategy to focus more on family, focusing Large screen, dedicated to become a family of intelligent Internet service operators to large screen as the center, to expand to all aspects of smart home, to provide users with rich services.
This can not be described as a particularly clear strategic direction, it is difficult to see the music show is the turning point, at least until the TV funds have been completely resolved, the music of the TV lost 'cheese' is difficult to find it It's