Why is 2016 a watershed for China's color TV industry?
2016 is a watershed for China's color TV industry. The top five TV companies in the global color TV industry lasted one year. Although China's color TV brands did not reach the top spot, they accounted for 3-5 positions in global sales, including Hisense, TCL, and Skyworth. The strong rise of Chinese brands has brought great pressure on Japanese and Korean brands.
Recently, the domestic research institute Sigma Intell released a 2016 television industry report indicating that domestic TV brands represented by TCL, Hisense, Skyworth and other domestic TV brands have risen strongly in terms of shipments in 2016, and the total shipments of 83.6 million units are expected to be higher than in 2015. With a growth of 15%, the global share will also reach 33.9%, an increase of 4 percentage points; while the strong Korean and Japanese brands are expected to decline in different ranges.
Old brand vertical and horizontal alliance
Compared to the continued splendor and speculation of the smart phone industry for many years, the impact of the Internet on the television industry seems to be much milder. After many years of stimulating policies such as home appliances going to the countryside, the situation of the industry’s hunger for the needs of some squid is urgently needed, and it appears that the Internet's freshmen are playing this role in the TV industry.
Unlike the big break in the telecommunications field, the Internet iteration of the television industry is more like a microscopic adjustment: content dealers, channel distributors, licensees, and internet hardware brands have entered the bureau many times, but with Hisense, TCL, Skyworth and other traditions. The flag bearers are nested in parallel and take their positions. In the past, the status of “nest and horizontal†has also been improved through the superposition of multiple advantages, and the core manufacturers have the ability to deepen the layout and resources input overseas. The entire industry has matured through this benign drive.
In December 2015, LeTV and TCL Multimedia also announced that LeTV subscribed for TCL Multimedia New Shares for approximately RMB1.8 billion; in September 2016, Iqiyi and Skyworth announced a strategic partnership, the former took a share of RMB 150 million to open shares in Skyworth Coolpad... In fact, the past For several years, similar deep cooperation in the industry, such as “a traditional TV hero with strong new Internetâ€, is not uncommon. From the perspective of cooperation methods, Hisense, TCL, and Skyworth seem to “submitâ€, but behind the cooperation are Zhou Houjian and Li Dongsheng’s reforms and open choices. The two factions meet in a very different camp and the industry under the Internet background. Integration with the return. The new force of the Internet has also forced the traditional TV industry flag bearer Hao Qiang to find a path to greater success.
On November 24th, Hisense and Lenovo jointly announced that they will use the Hisense Hi-View Pro picture quality engine chip to launch Lenovo's 2017 flagship TV new product. Before this, Hisense released the Hi-View Pro picture quality engine chip, making Hisense become the only TV machine company in China with its own high-end picture quality chip, greatly enhancing the picture quality competitiveness of high-end smart TVs.
The level of chip development reflects the level of modernization of a country. In the course of chip development, China has been subject to human control for a long time. According to relevant statistics, in 2014, China imported 217.6 billion U.S. dollars worth of chips, which has exceeded the amount of crude oil imports. Hisense and Lenovo’s cooperation has taken a historic step: for the first time, they have obtained the flagship models of TV machine brands. Direct purchase and application. In the other direction of industrialization promotion, Hisense has also achieved volume shipments in China's largest TV card factory CVTE and Jin Ruixian. A number of domestic and foreign well-known TV machine companies are customizing and developing complete machines based on the Hi-View Pro solution, focusing on the mid- to high-end TV market at home and abroad. "China's first TV chip" will gain greater industrial space and discourse power in this wave of application upgrades.
Not long after Hisense announced its cooperation, TCL and Hisense also announced that they would cooperate in depth on TV LCD panels and mobile phone display panels, and formed a camp with the combination of Skyworth and BOE in the OLED field. The improvement of the core industrial chain, which is highly vertically integrated from chips to display technologies, has promoted the development of China's integrated circuit industry more forcefully, making Chinese brands begin to try to define the development direction of the color TV industry at the height of the world. This can also be seen as Domestic TV brand's "inner bones" approach.
Internationalization is far faster than Japan and South Korea
According to data from Sinma Intell, in the international market, shipments of Chinese brands in 2016 are expected to reach 32.4 million units, a year-on-year increase of 19%, far exceeding that of Japanese and Korean companies. Under the background of stabilizing the domestic market and focusing on iterative new demands, domestic TV bearers have also taken the expansion of the international market as the main target in the past year, and sent them to the Japanese and Korean brands that have completely turned their backs on the international market.
In the summer of France in 2016, the European Cup was unexpectedly the king of the topic, and the European football upstart Portugal won the television brand from China: Hisense. Since the beginning of the year, he has been letting off the air, and Hisense has taken the European Cup's brand marketing campaign to victory. On the one hand, with the demand of the European Cup competition and the quality of consumer groups, it launched the high-end brand “VIDAA†at the beginning of the year, which completely blew the high-end emergency charge of the product structure transformation. In addition, with the help of the events in Europe, the main title Shanghai Hisense also successfully obtained the attention and favor of European retail channels and consumers. Hisense's latest financial report also showed that the European Cup targeted brand promotion and marketing benefit double harvest.
Almost at the same time that Hisense “camloopered†in France in Western Europe, in Poland in Eastern Europe, the train for the unified brand “CEIBS†was officially launched for the first time. 33 of the 41 containers were electronic components of the TCL Group and will be held in TCL Poland. The factory will assemble and sell it to Europe. On the same day, the heads of state including the Polish president personally participated in the special arrival ceremony. The TCL that rides on the special train can also be said to have no time. At the same time, TCL’s international strategy is focused on. It has five production lines at the Polish factory and can produce 4.5 million TVs each year. As an important transportation hub in Europe, TCL TV will be able to reach Frankfurt and Paris in one day after being offline. It will be able to reach all parts of Europe including Lisbon and Madrid within three days. At present, 90% of the parts and components in the factory are turned into Rail transport.
In addition to Hisense and TCL, Sichuan Changhong, the domestic TV giant, announced this year that it will continue to increase investment in the Czech Republic and set up an R&D center. While strengthening the industry's ecological chain and core technological capabilities, “external faces†make good use of brand marketing methods; while strengthening domestic reforms, they strengthen their influence overseas. It can be asserted that 2016 is a watershed in which the domestic TV industry has become weaker and stronger and matured.
A year-end custom shipment data represents the company’s global market position from a horizontal perspective. However, it actually represents a kind of potential energy, a kind of future vertical industry chain derived ability, and even reflects the domestic traditional TV. The brand's determination to survive in a prosperous environment. In this industry, the occasion of competition and anxious coexistence, encourage domestic companies to penetrate the fog of industrial upgrading and development.
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