GfK: Analysis of channel development in the Chinese TV market in the first half of the year

Color TV channel warfare upgrade online leading growth

After the downturn in the color TV market in 2017, the overall color TV market performance from 2018 to the present can be described as reasonable, unexpected.

Reasonable: After the cost pressure on the upstream panel eased, the terminal retail market ushered in a recovery. According to GfK China's national retail monitoring data, the retail sales of the Chinese flat-panel TV market reached 7.3% from January to May 2018. The year-on-year growth is expected to increase by 8.4% year-on-year in the overall market retail volume in the first half of 2018.

Unexpectedly: The average unit price decline rate is staggering. The average market price in January-May 2018 decreased by 4.7% year-on-year. Among them, the online market opened the 'price war' early, and the average price dropped 11.6 year-on-year. %.

Driven by the 'price war', the online market has become the main driving force driving the growth of the overall color TV market. According to GfK data, the online retail sales of flat-panel TVs in the first half of 2018 are expected to increase by 45% year-on-year. The average price of offline market did not fall, and the average price in January-March was up 3.7% year-on-year. As a result, retail sales fell 12.9% year-on-year in January-May.

'Price war' leads the online market to grow rapidly

The rapid decline in panel prices in the past year has provided a guarantee for the recovery of the online market. After the machine manufacturers have shaken off the burden of panel prices, they have turned from passive price increases to active profits, actively launching cost-effective products in the online market, and restarting the price. Battle '.

According to GfK data, the retail sales of flat-panel TV online market in the first five months of 2018 increased by 49.2% year-on-year. Among them, the price range of 0~2000 yuan increased by more than 100% year-on-year. The rapid growth of low price segment further widened the online market and The difference between the offline market and the average unit price of online and offline from January to May 2018 reached 1,668 yuan, compared with 1,220 yuan in the same period of 2017. The spread of the spread further helped the online market to accelerate the market share of the offline market, 2018 From January to May of this year, the proportion of online market retail sales has reached 44.6%. In 2018, the proportion of online market retail sales is expected to exceed 50%.

Home appliance chain and department store owners push high-end large-size products

With the advantage of low price, high cost performance and other advantages in the online market, the home appliance chain has been a major channel for retail sales accounting for more than 40% of the offline market.

According to GfK data, the retail sales of home appliance chain fell by 11.3% year-on-year in the first five months of 2018, and the retail volume fell by 14.2% year-on-year. Under the unfavorable situation of shrinking scale, the home appliance chain has been actively seeking changes to optimize its product structure. In terms of size, the larger size products with better gross profit have become the main driving direction of home appliance chain. The sales volume of 65-inch and above segments has increased from 21.1% in January-May 2017 to 29.6% in January-May 2018. The year-on-year growth was 24.3%. Among them, the increase of 75 inches and above was 72.1%.

From the price point of view, the retail sales of the ultra-high price segment of 15,000 yuan or more increased by 24.9% year-on-year, and the proportion exceeded 10%. In addition, we also conducted field visits to a number of stores and found that each brand has significantly reduced the size of small samples. , the main push for high-priced large-size products.

Department stores and home appliance chains are similar, mainly promoting high-end large-size products. Although the proportion of department store retail sales is less than 6% of the overall market, it has maintained the highest retail average price throughout the market. GfK data shows that flat-panel TVs are in department store channels 2018. The average retail price in the first five months of the year reached 4,589 yuan, a year-on-year increase of 5.9%.

Independent stores are mainly located in low-level markets

Due to the huge differences in the size and development of Chinese cities, independent stores mainly exist in the 4th and 5th tier markets. Although the individual size is not large, the number is very large, and the volume cannot be ignored.

According to GfK data, the retail sales of flat-panel TVs in independent stores accounted for 45.5% of the overall offline market in January-May 2018, which is close to half of the overall offline market. This last red sea is also the target of various retailers competing for competition.

Supermarkets are most affected by the online market

The product structure and product positioning of the supermarket channel are very similar to the online market. They are mainly cost-effective and low-priced products. Therefore, supermarkets are also the channels most affected by the online market.

According to GfK data, from January to May 2018, the retail sales of flat-panel TVs in supermarket channels fell by nearly 20% year-on-year, much higher than the overall market. The rapid decline in ping effect also forced some supermarkets to reduce inefficient stores to cope with the continuation of sales. Shrinking, the number of supermarket channels sold in May 2018 decreased by about 5% year-on-year. The supermarket channel needs to seek transformation as soon as possible to resist the continued impact of the online market.

Online is still the main growth point in the second half of the year

In addition to small and medium size, the oversized size of the online market is also expected to usher in a breakthrough, especially 75 inches. With the successive listing of low-priced products from domestic and Internet brands, the online market is expected to usher in an explosion. In such a big environment, How to use the 'new retail' trend to help the drainage, do store management and optimization, improve customer service and experience, will be the direction that the offline market needs to focus on.

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