Huawei | 'Entering' | TV industry? Who is the main battle in the Red Sea battlefield?

Recently, according to relevant sources, mobile phone manufacturers such as vivo, OPPO, Huawei, etc. are watching the TV market and starting to plan how to seize a larger share of the TV market. This news is like a stone that stirs up a thousand waves, and fission has triggered a paradox. Hot discussion of the world.

Regarding whether the three major mobile phone manufacturers really enter the TV industry, both vivo and OPPO have denied this. In contrast, Huawei has not expressed its views on whether it will enter the TV field. Why mobile phone manufacturers will enter the TV field, according to relevant analysis: 'The current mobile phone industry is fiercely competitive, profits are shrinking, and mainstream mobile phone manufacturers have already taken action in the joint TV field. ' It seems quite reasonable.

Despite the weak domestic color TV market, most of the color TV listed companies' profits have fallen, but the big screen value of smart homes continues to attract new predators to prepare for cross-border entry. It is understood that these three major mobile phone manufacturers account for up to 70% of the mobile phone market. Half of the country, if these big coffee groups enter the TV field, it will face a new round of reshuffle and change in the color TV market, and the mobile phone and TV industries are more likely to usher in an interoperable situation. So, what is the current development of the color TV industry? What kind of pattern is it in?

The color TV data tells you why the price war is the biggest dilemma in the industry. What is the current status of the color TV industry?

Market size

According to the data of the China Business Research Institute, due to the volatility of panel prices in the past two years, the competition in the color TV industry has intensified, and the overall market is in turmoil. From the upstream panel, the panel prices have dropped significantly in 2017 compared to 2017. The price of key size has dropped by more than 20%. From the perspective of global development, panel prices have entered the downward channel, and sports events such as the 2018 World Cup have driven demand. The global color TV market shipped in the first half of 2018 reached 99 million units, up 4.9% year-on-year. The downward trend of the panel also brings benefits to the Chinese color TV market, but its development still faces many challenges. The 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', consuming the overall benefits.

In the first half of 2018, China's color TV market was underdeveloped in a complex environment, showing a growth in volume. According to the data, 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 institute predicts that the retail sales of China's color TV market will reach 43.19 million units in 2018, an increase of about 3.4% year-on-year.

Source: China Business Research Institute

In terms of retail sales, the retail sales of China's color TV market in the first half of the year was 72.5 billion yuan, down 2.0% year-on-year. It is estimated that the retail sales of color TV market in 2018 will reach 159.7 billion yuan, down 2% year-on-year.

Source: China Business Research Institute

2. Production

From the production point of view: According to statistics, in the first half of 2018, the cumulative output of national color TV sets reached 86.68 million units, an increase of 15.1% year-on-year. It is estimated that the output of China's color TV sets will exceed 180 million units in 2018, an increase of about 7.2% year-on-year.

Source: China Business Research Institute Database

3. Import

From the perspective of imports: According to statistics, in addition to the significant increase in the import volume of color TVs in China in 2016, the basic changes in imports in other years are not significant. Specifically: In 2016, the import volume of color TVs in China was 11.65 million units, a year-on-year increase of 99.2%. In 2017, China's color TV imports continued to decline; in the first half of 2018, China's color TV imports were 48,000 units, an increase of 48.8%.

Source: China Business Research Institute Database

From the perspective of import value: In 2017, China's color TV import volume reached US$24 million, down 43.6% year-on-year; in the first half of 2018, China's color TV import value was US$15 million, up 97.4% year-on-year.

Source: China Business Research Institute Database

4. Export

From the export situation: According to statistics, in the first half of 2018, China's color TV exports reached 41.1 million units. Looking at the export volume of China's color TV devices in 2014-2017, the export volume continued to increase in four years, with an average annual compound growth rate of 3.25. In terms of export value, China's color TV output reached US$6.4 billion in January-June 2018; China's color TV export volume maintained a moderate growth in 2014-2017, with an average annual compound growth rate of 0.77%. The gap will be small in 2017.

Source: China Business Research Institute

On the whole, in recent years, the market capacity of the color TV industry has been shrinking. Together with other brands entering the market, the color TV market is languishing. If Huawei enters the TV industry, traditional manufacturers will also feel pressure, or will impact the existing brand structure. Industry competition will be more intense. However, there is no progress in the industry without competition. Other new blood will join the TV industry and promote the innovation of the TV industry. So, what is the current market competition in the color TV industry?

Who is the main sinker of the 100 billion color TV Red Sea battlefield?

With the upgrading of consumption, the quality of color TV products is getting higher and higher, and the quality of audio products is getting higher and higher, which has led to the overall high-end and quality transformation of the TV industry. According to statistics, the top five TV brands in the world in 2017 are Samsung, LG, TCL, Hisense, Sony, among which Samsung has achieved the world's number one shipment with 41.9 million units. Domestically, the domestic color TV market has basically formed a large-scale fixed-frame framework dominated by local brands, and the layered structure between color TV brands has become increasingly obvious. Generally can be divided into four levels:

The first level: Mainly Hisense, TCL, Skyworth. Hisense has a long-term share advantage in the domestic market, and its internationalization performance is also in a leading position, and it is the real home appliance giant of black and white Dentsu, brand appeal, and profitability at the forefront. TCL is also a leader in internationalization among local brands, and its domestic market share ranks in the forefront. Skyworth, as a Hong Kong-based private enterprise, has a good reputation in the market, leading domestic market share, and operating flexibility is almost the strongest in the industry.

The second level: mainly Changhong, Konka, Haier three brands. Among them, Haier has maintained a slow increase in market share in recent years; Changhong and Konka have experienced a large adjustment in business performance.

The third level is the recovery of foreign brands: Sony, which is operated independently after the color TV business, Sharp under the control of Hon Hai and Philips under the control of TPV. Among these three brands, Sony still has a more traditional 'international character', and In the 40-year period of the color TV industry, the long-term reputation of NO1 has a strong brand image and strong soft assets. Sharp and Philips have the characteristics of international brands and localization teams. In 2017, the market flexibility of both companies surpassed the participation of all foreign-invested industries. By.

The fourth level: including Samsung, LG and Xiaomi led the Internet entrepreneurial brand.

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