Color TV market competing | Kang Jia made | 'core' | Breakout

After the market's sales profit doubled in 2017, the color TV market gradually resumed sales in the first half of 2018. However, the profit growth of color TV still faces multiple challenges.

In this situation, the well-known home appliance company Konka Group (Shen Kang Jia A, 000016.SZ) is in the process of promoting transformation, and has laid out energy conservation and environmental protection, semiconductors, new materials and other fields.

In the diversified expansion, the color TV business carried by Konka and the brand is also “newly renewed.” In mid-July, the color TV business of Konka Group was unveiled as a new subsidiary of the independent subsidiary. The new identity is Shenzhen Konka Electronic Technology Co., Ltd. Hereinafter referred to as 'Kangjia Electronic Technology'), it is also accompanied by the new goal of 'color TV business to achieve 30 billion yuan revenue in three years'.

How to achieve new goals? How to cooperate with the Group's new business? How to break through in the color TV market? Assistant President of Konka Group, President of Multimedia Industry Headquarters, Chairman and President of Shenzhen Konka Electronic Technology Co., Ltd. Chang Dong, August On the 22nd, I responded in an interview with the reporter of China Business News.

Quarrel

Since 2018, the sales of color TV market is still fascinating. The recent summary of China's color TV market in the first half of 2018 released by Aowei.com shows that the retail volume of China's color TV market in the first half of 2018 was 22.6 million units, up 3.6% year-on-year; The retail sales volume was 72.5 billion yuan, down 2.0% year-on-year.

However, after the release of the medium and long-term development strategy, Konka's performance has risen against the trend. In mid-July, Shenkang A released its 2018 annual results forecast, showing that the Group's revenue and net profit both increased. During the period, Konka Electronics Technology Co., Ltd. In the product line of thinking, in the field of color TV, AI+ super display, 5G+ super HD, user + super ecology, stable development. Konka recently announced that the cumulative number of OTT users is 33.4 million, monthly live 22.2 million, according to the average smart TV The terminal corresponds to 3.8 people. The number of users covering the Konka Yiyou system is close to 120 million. It has been firmly in the first camp of the industry. In the first half of 2018, the sales volume of Konka OLED TV has increased by 300%.

Since the middle of 2016, LCD TV panel prices have been rising all the way. After the price decline since 2017, it has stopped falling since July 2018. As the core component of the color TV machine, the fluctuation of panel prices affects the color TV manufacturers. nerve.

'In the upstream supply chain, not only the glass panel, but also the cost of other materials is rising. The cost of the supply chain of the color TV manufacturers will be very high,” Chang Dong said frankly.

He believes that to improve the situation, on the one hand, relying on the improvement of the average price of the color TV industry to increase the gross profit, so everyone will exert strength in the middle and high-end products, and promote the average price to go up. On the other hand, Konka Electronics will pass New product upgrades to offset the negative impact of rising costs.

An industry insider told reporters that Xiaomi’s direct sales of TV through the Internet and Sharp’s sharp price cuts in China gradually led to a downward adjustment in the overall average price of the color TV industry, which brought some pressure on the gross profit of color TV manufacturers.

Aowei cloud network analysis also pointed out that price war is the biggest dilemma in China's color TV market. In the 30 years of rapid development of color TV, the large-scale price war has exceeded 20 times, with an average of 1.5 years. The price war is like the 'prisoner's dilemma'. interest.

In the thinning environment of the color TV market, the entry of cross-border people has made the market competition more intense.

Recently, news about Huawei, OPPO, vivo and other mobile phone manufacturers entering the color TV market has been rampant. Although mobile phone manufacturers have not publicly released relevant information, mobile phone manufacturers have revealed their ambitions.

According to public sources, Huawei has re-established the TV project team and is recruiting people from the upstream panel. At the same time, Huawei's consumer BG CEO Yu Chengdong has publicly stated that Huawei's new business strategy is 'full scene smart life. The eco-strategy also needs TV products. According to industry insiders, Huawei's Hisilicon Semiconductor Co., Ltd. (hereafter referred to as 'Huawei Haisi') has sprung up in the video chip field in recent years, and its market share in China has reached more than 30%. Providing innate advantages for Huawei to enter the color TV market.

According to public information, Huawei Haisi's independent ultra-high-definition smart TV core chip shipped nearly 10 million in 2016, and has entered the supply chain of six major color TV manufacturers in China. Many brands including Konka are using Huawei Sea. Think chip.

In the face of the cross-border entry, Chang Dong said that Konka has been doing TV for 38 years, and has accumulated accumulation in brand, technology and R&D. There is new competition, which can promote its own improvement; strong and strong opponents join, this The industry is also developing rapidly.

This year, Konka Electronics launched the OLED V1 future TV series, which combines large screens with smart speakers to create scene-based services such as shopping scenes, smart homes, entertainment and social, educational security, and enhance user experience. 'Future TV' will It is the main theme of Konka TV. It will use the OLED, 8K, artificial intelligence, and Internet of Things as the direction for the smart home appliance market. Actively develop high-end, smart TV, and integrate multiple resources to open smart home mobile internet.

'We are not afraid, believe in our brand, believe in our channels, believe in our precipitation. We are also doing semiconductors, mastering core technologies. From the industrial layout, we have opportunities and are breaking through,' said Chang Dong.

Create 'core' 扼 throat industry chain

As the world's largest color TV manufacturing base, China's lack of core and less screens has been a trouble in the past. With the strong rise of the domestic LCD TV panel industry, color TV chips will be the next 'fortress' waiting for Chinese companies to overcome.

When color TV companies continue to increase competition in the upstream panel market, Konka has begun to diversify its layout and has chosen to enter the semiconductor industry to empower the industry chain.

In this regard, Chang Dong said that Konka comprehensively analyzed the operational risks of panels and semiconductors when exerting power on the upstream of the color TV industry chain. As the panel industry is a heavy asset, the investment is large, and most of the mass production is concentrated, the current market supply is also tending. Near saturation. Combining these factors, Konka finally chose to invest in semiconductors.

In addition, Konka Group itself also has a large demand for semiconductors. Li Hongwei, vice president of Konka Group and head of the semiconductor technology division, said in an interview with the China Business News that the amount of semiconductors purchased by Konka in 2017 was about $1 billion. It will reach 10 billion yuan in 2018, and the annual growth rate will exceed 30%. The demand in the next five years will be further enhanced.

It is reported that the semiconductor division of Konka Group will comprehensively lay out the industrial chain of semiconductor design, semiconductor manufacturing, semiconductor equipment, semiconductor materials, etc. The key product directions are memory chips, IoT devices, and optoelectronic devices.

'Semiconductor and Konka's white electricity, black electricity, mobile phones, digital networks and other sectors have certain relevance. Since the establishment of the semiconductor technology division, its development is toward product specialization, from design, materials, sealing Measurement, upstream wafer wafers, etc. Electronic technology is just one of the outlets," Chang Dong said.

According to Chang Dong, Konka's semiconductor business is mainly focused on chip design, including WIFI chips, Bluetooth chips and other IoT chips, while SOC master chips are currently difficult to face. Facing the technical barriers and huge investment in the semiconductor industry, The breakthroughs currently selected by Konka Electronics Technology are mainly risk-controllable, controllable payback period, and relatively mature segmentation of localization.

This year, in the field of home appliances, there is a 'core trend', and Huai's 'core dream' is not only the Konka family, Gree, Skyworth also high-profile attack on the chip industry.

Recently, Gree has established a wholly-owned subsidiary of the company, specializing in chips, electronic components and other products, on the road to create a 'core', a substantial step.

Konka announced the establishment of the semiconductor technology business unit in May this year, and is gradually opening up the situation. It is reported that Konka Electronics has been equipped with semiconductor product planning, product definition and product technology, and is still expanding its recruiting staff. At that time, it will cooperate with the assets of the Konka Semiconductor Business Unit through mergers and acquisitions.

Overseas market

In the face of fierce domestic price wars and entering the stock market, domestic color TV companies have turned their eyes to overseas markets.

According to the “Report on the Development of Color TV Industry in the First Half of 2018” issued by China Electronics Video Industry Association, in the first half of this year, the domestic retail sales of color TVs was 22.6 million units, up 3.6% year-on-year; from January to May, China’s color TV exports reached a new high, exporting. The volume increased by 2.6% and the export volume increased by 19.9%.

In fact, overseas markets have also become the main engine for the growth of Konka's electronic technology.

According to Changdong, Konka's revenue in overseas markets can reach an increase of 30% to 40%. It is expected that it will expand through joint ventures or mergers and acquisitions in the future. The overseas market will exceed the domestic market, in the performance of Konka Electronics Technology. The proportion increased from the current 35% to about 60%.

In fact, when the domestic market is weak, the overseas market has brought more business opportunities to domestic color TV manufacturers.

It is reported that Konka's overseas business expansion is mainly concentrated in emerging markets such as Southeast Asia and Africa. In addition, in developed markets such as North America and Europe, Konka adopts a relatively light asset expansion approach, and will consider mergers and acquisitions in the future.

Peng Xiandong, general manager of Zhongyikang Black Power Center, pointed out that when Chinese color TV manufacturers explore overseas markets, they can really promote the rapid expansion of their business scale. They are also emerging markets such as Southeast Asia, Latin America and Africa. In the TV industry renewal, developed countries As well as China, the transformation of color picture tube TVs to flat-panel LCD TVs has been basically completed, and market demand is gradually moving closer to large-size LCD TVs. However, in many developing countries, in emerging markets, market stocks are still dominated by small and medium-sized TVs. Therefore, overseas The market will provide many opportunities for Chinese color TV manufacturers in the future.

However, when Chinese color TV manufacturers are overseas, they face multiple uncertainties such as exchange rate fluctuations and trade wars.

'Overseas business is affected by global factors, exchange rate factors, legal factors, and industrial chain are relatively scattered. Overall, overseas business, especially private label business, requires investment period. The foundry business is relatively stable, but the net profit ratio is Not own brand business. For the enterprise, see how the backstage integrates the supply chain. If the integration is good, it should be walking on multiple legs, own brand business, domestic sales, and overseas OEM.

Business, profit margins complement each other', Chang Dong said.

However, with the escalation of the Sino-US trade war, the Trump administration has promoted a plan to impose tariffs on China's $200 billion in goods, and released a list of target products. The proposed list of goods includes consumer goods such as clothing, TV parts and refrigerators.

Regarding the impact of the Sino-US trade war on the overseas expansion of Konka's color TV business, Chang Dong said, 'Now there is little direct impact on us. If the next round of trade war continues, we will be affected indirectly. However, we are in Mexico. In North America, we have a well-established supply chain capability. In response to US tariff increases, we have a solution.

YORK New Media Coolest Technology News

Scan code wins big prize