TV manufacturers "Eleventh" pushing high-end products refused to fight price war

The "11" holiday just passed has once again become the main battlefield for color TV manufacturers. With the dive of LCD panel prices, the originally expected price war did not come. When the Beijing Business Daily reporter visited the home appliance store during the “11th” period, he found that the mainstream TV manufacturers are currently pushing for mid- to high-end products to welcome the upcoming consumer upgrade.

The price fluctuations of LCD panels have affected the sensitive nerves of downstream TV manufacturers. The price surge of LCD panels that lasted for nearly a year had caused TV manufacturers to feel pressure. However, since the second half of this year, LCD panel prices have begun to loosen and have fallen sharply recently. In this situation, some Internet TV brands began brewing price wars. Like millet TV had previously announced on September 1 to cut prices of some models, first took the first shot of color TV prices.

Unlike the white market, color TV companies have continued to show sluggish performance in recent years. According to a report released by the Ministry of Industry and Information Technology, the cumulative production of color TVs in the first half of this year was 74.23 million units, a year-on-year decrease of 6.4%; and the cumulative production of LCD TVs was 69.62 million units, a year-on-year decrease of 8.5%.

This also reflects the performance of some listed home appliance giants. Sichuan Changhong's first-half revenue was 34.76 billion yuan, a year-on-year increase of 6.07%, and net profit was only 150 million yuan, a year-on-year drop of 66.55%; Hisense Electric's half-year revenue was 13.567 billion yuan, a slight increase of 2.09% year-on-year, and net profit was only 396 million yuan. Yuan; Shenzhen Konka A recorded 14.106 billion yuan in revenue in the first half of the year, and its net profit was only 30.871 million yuan.

Hisense frankly stated in the semi-annual report that the overall demand for the global TV market was sluggish in the first half of the year. An important reason for the downturn in the industry was that the prices of key components represented by liquid crystal panels have continued to rise sharply since last year, pushing up TV market prices. The suppression of market consumption also brought tremendous pressure on the operation of the entire machine company.

When Beijing Daily News reporter visited the Beijing home appliance store recently, it was discovered that television manufacturers such as TCL, Hisense, Skyworth and others have all placed important product promotions on high-end products. Zhang Shaoyong, general manager of TCL Multimedia Product Center, told reporters that with the increasing consumption of high-end products, the market began to gradually return to value competition from price competition. The consumption of smart TVs is not just the price of buying TV, but also the quality of use, including content and services. Therefore, TCL is more to provide users with the best cost-effective, and not too much for sales and low price impact. Therefore, TCL’s promotional activities during the “11” period will not be low prices. Yu Wenjie, general manager of Hisense Beijing Branch, told reporters that Hisense has made adequate preparations for this year’s “Eleventh” market, and will lead the “Eleventh” Golden Week consumer trends with high-end new products. This year, the “11” high-end large-screen market is focusing on volume, sales of 65-inch TVs and large-screen TVs have exceeded 10%, and Hisense’s “11” layout is also focused on high-end large-screen markets. The ultra-large screen market pushes laser televisions, and the mainstream high-end market pushes ULED TVs. Tian Shuchang, general manager of Skyworth Beijing Branch, said that Skyworth will continue to promote OLED TVs, and its S-series new S8 will hit 9999 yuan for the first time, thus accelerating the popularity of OLED TVs.

Hong Shibin, an appliance industry observer, believes that the panel prices will fall, reflecting the fact that there will be a buffer time for actual TV products. The current TV market price trend has been flattening. In addition, although the television industry is currently in saturation, the high-end TV market has shown new value, so TV competition has become a necessity from the price return value.