Recently, AVC released data that in 2016, China's color TV market exceeded 50 million units, a year-on-year increase of 7.8%. In 2017, the panel price will continue to rise, and the cost pressure faced by color TV unit companies will increase. In the first quarter, the color TV market entered the adjustment period, with a retail volume of 11.79 million units, a decrease of 5.2% year-on-year; the retail sales of color TV reached 38.9 billion yuan, a year-on-year increase of 1.8%.
It is noteworthy that the scale of the online market in the first quarter was 3.59 million units, accounting for 30% of the market, which was a slight increase of 0.6% year-on-year. Except that professional e-commerce kept growing, both platform e-commerce and self-operated e-commerce experienced negative growth. The offline market channels remained declining.
In the event of weakening demand in the home appliance market, home appliance companies are constantly exploring new profit margins, and Internet brand camp space is prosperous. Mango and Skyworth in-depth hand in hand, TCL Thunderbird turned out, Gome Capital Alliance channel Everbright Capital, Internet brand marketing innovation stirred the color TV industry, "a pool of spring water."
Price war is difficult to maintain
Last year, due to the sharp rise in raw material prices, home appliance manufacturers have had to raise the price of television products several times. Today, when the first-quarter transcripts are handed over, the sales volume of the color TV market has generally declined.
Weng Zhenhua, general manager of AVC's Black Power Division, said that in 2017, panel prices continued to rise, and the cost pressure faced by color TV makers was increasing. At the same time, foreign brands have begun to exert their power and Internet brands have added new ones. The market growth potential is still there. The price of the entire machine under the pressure of price rebounded, making the retail sales of color TV in the first quarter reach 38.9 billion yuan, an increase of 1.8% year-on-year.
In the first quarter of the overall color TV market decline, foreign brands usher in space for development, but in the extremely fierce competition in the Internet TV market, the situation is particularly grim. According to statistics, the market share of foreign brands in the first quarter was 16.2%, an increase of 5.8 percentage points from the same period of last year. The market share of Internet brands decreased by 4.1 percentage points over the same period of last year, accounting for 10.8%.
It is worth noting that due to the increase in prices of upstream panels, the color TV market of key promotional nodes in the first quarter of New Year's Day, the Spring Festival, and the 315th year has declined in different degrees compared to last year. April color TV market is expected to stop falling.
Weng Zhenhua believes that the color TV market decline in addition to the reasons for rising prices of home appliances, home appliances innovation has also weakened. “A total of 157 new models were released offline in the first quarter, and a total of 165 new models were online. Although the number of new products has declined compared to the same period of last year, AI artificial intelligence has become the key word for this year’s new products, and various brands of artificial intelligence products have emerged. ."
Peng Jianfeng, deputy secretary-general of the China Electronics Video Industry Association, pointed out that at present, the demand for color TV has entered the quality improvement stage from the stage of quantitative growth. With the sharp increase in the price of core components such as LCD panels and raw materials, and the rising labor costs, the pressure on home appliance manufacturers has increased significantly. We should be alert to the fact that the industry is once again caught in a price war.
Panel risk highlighting
While the color TV market has experienced weakness in the beginning of the year, the channel strategies of retailers have also changed silently. The barbaric growth in the color TV market no longer continues, and online channels have accelerated to sink. The number of direct-operated stores under Suning's E-Commerce line reached 2,500, and the number of Jingdong stores reached 1,000.
Weng Zhenhua believes that due to the flat supply of the panel remained low in the first quarter, the relationship between supply and demand is still tight, resulting in panel prices running high. Panel price increases led to increased pressure on the entire machine, causing a weak start of the TV market, but it is expected that the volume of retail sales in the TV market will reach 11.24 million units in the second quarter, an increase of 1.5% year-on-year, and retail sales will be 35.1 billion yuan, an increase of 7.0% year-on-year.
According to Cui Jilong, senior research manager of AVC Display Industry Chain Business Unit, the market operation of the upstream panel shows that: "The cost of the panel in the TV industry chain is higher and higher, reaching 60%, in the supply chain. The status of China is even more important. Through the panel, we can break the inherent barriers to the industry."
However, he believes that the lack of optimism in new energy consumption and excessive fluctuations in panel prices are all risks for the future development of the panel industry, which also restricts the development of the home appliance industry.
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