The most severe real estate regulation in history, the history of the longest panel price increase cycle in history, coupled with the rise of competing products such as Internet TV, smart micro-investment, and OTT boxes... In 2017, China’s color TV market was affected by enemies, and suffered ten One of the coldest winters in years. According to the monitoring report of Ovid Cloud Network, in 2017 China's color TV retail sales reached 47.52 million units, a year-on-year decrease of 6.6%, the largest decline since 2003.
Such a difficult industrial environment is just the touchstone for testing brand strength. In the 2017 annual report, the first quarterly report of 2018 was released. TCL Multimedia, the leader of the company, confirmed its strong anti-risk ability with firm performance. As well as its sustainable growth capability, it has further strengthened its leading position in the new wave of reshuffle.
TCL Multimedia's operating data for the first quarter of 2018
The financial report showed that TCL Multimedia’s turnover for 2017 exceeded HK$40 billion for the first time, a year-on-year increase of 22.4% to HK$40.82 billion, a record high; TV sales for the year reached 23.23 million units, a year-on-year increase of 16.4%, the largest increase in five years. In the first quarter of 2018, along with the moderate recovery of the industry, TCL Multimedia's leading edge continued to expand. The year-on-year growth in turnover and TV sales was 35.6% and 28.0%, respectively, which all increased the most in the past five years.
This wave of TCL Multimedia’s booming momentum was the most bleak in the Chinese color TV market. Some people did not expect it. It was even more curious about the secrets of growth behind it. How did you get rid of the downturn in the industry and even entered the industry? Development fast lane?
1. The cost advantage of vertical integration of LCD industry chain appears.
Relying on the panel production capacity of the group's subsidiary China Star Optoelectronics, TCL Multimedia is the only domestic TV set manufacturer in the world with only four (Samsung, LG, TCL, Sharp) having a vertically integrated industrial chain.
On the one hand, when the panel cycle fluctuates significantly, TCL Multimedia can mitigate the impact of cost and supply on its own, and control external risks in a timely and effective manner. On the other hand, when the panel maker accelerates technology updates, it is also conducive to driving TVs. The innovation and upgrading of machine products will further increase the internal gross margin space. It is reported that the G11 of Huaxing Optoelectronics will be put into production in 2019, and the cutting panel will be mainly 65 inches and above. By then, TCL Multimedia will have stronger strength in the field of large-screen TVs. Competitive Advantage.
In the spring of 2018, TCL Multimedia boosted new products to seize high-end market
2, stepped on the consumption upgrade node, high-end transformation is effective.
For the color TV industry that has entered the mature period, the upgrading of consumption upgrade is undoubtedly the biggest growth driver in the future. TCL Multimedia has grasped this trend with precision and has been consistently developing new technologies and high value-added products.
The financial statements show that the average selling price of TCL TV in the Chinese market increased by 15.6% year-on-year in 2017, which was higher than the 13.9% increase in the industry. It is precisely because of this price increase that TCL Multimedia's turnover in the Chinese market in 2017 was in year-on-year sales. Under the premise of slightly falling by 2.7%, it still achieved a growth of 2.3%.
With the continuous optimization of product structure, TCL's smart TV sales in the Chinese market reached 5.57 million units, which accounted for an increase in the proportion of total sales from 66.1% in 2016 to 76.3% in 2017; 4K TV sales reached 3.11 million units, accounting for 42.7% of the total in 2017, from 36.3% in 2016; the market share of curved TV lines reached 33.6%, which continues to maintain the top position in the Chinese market. In addition, the average sales size of TVs , It also rose from 44.3 inches to 45.8 inches. The sales volume of products over 55 inches increased by 8.5 percentage points. (Source: Zhong Yikang)
It can be seen that the proportion of medium-to-high-end products has further increased, which is the main reason why TCL Multimedia has entered a fast-rising channel and has significantly improved its profitability.
The X5 Quantum Dot TV with a full-surface curved screen is the latest high-end machine released by TCL.
3. Strong growth in overseas markets, accelerating globalization strategy.
Compared with the domestic market, TCL Multimedia's overseas market is more eye-catching. The 2018 first quarter report shows that LCD TV sales in the Chinese market have steadily increased by 9.6%, but in the overseas market has achieved a substantial increase of 58.7%.
Reviewing the new breakthrough of 23 million units in 2017 was also mainly due to the outbreak of overseas markets. Among them, the sales volume in the North American market more than doubled. The sales of LCD TVs in emerging markets increased by 21.5% year-on-year, of which Brazil The market performance was bright and sales increased by 149.6% year-on-year. In addition, the Philippines ranked third in terms of sales volume in the year 2017, fourth in Thailand, and fifth in Vietnam and Australia. By the end of 2017, TCL Multimedia The proportion of sales in overseas markets has reached 51%, and the globalized layout has achieved more fruitful results.
As a result, TCL Multimedia's globalization strategy is no longer satisfied with the stage of product export. On February 5, 2018, the formal announcement of signing Neymar as a global brand ambassador for TCL not only means that the pace of internationalization will increase again. Will promote TCL Multimedia in the overseas market has reached a new level of brand output, so as to contribute more to the overall performance.
