Recently, the analysis agencies issued the 2017 Chinese color TV market data, the situation is not optimistic. Data show that in 2017, China’s color TV retail sales fell 6.6%, retail sales increased by 4.5%, color TV retail sales fell 8.1%, retail sales increased by 3.4%, retail sales decreased by 6.6%, retail sales increased 4.5%. Means a four million Taiwan decline last year, China’s color TV retail volume. Most industry personages portrayed last year’s market as the most severe year in the history of Chinese color TV.
Inadvertently, 2017 has passed and 2018 has come. We are concerned that this year’s color TV market will continue to wander in the low valley, or will it be warm? Where are the factors that support the warming?
Panel price drop release short-term pressure
After nearly 10 years of cultivation, the retail sales of China’s color TV market in 2016 broke through 50 million units, and last year, it fell to about 47 million. The industry generally believes that the 50 million is the ceiling of the domestic market of color TV.
In 2017, China’s color TV market has been affected by the strict control policy of real estate, and the demand of newly decorated house TV purchase has fallen sharply. Moreover, the Internet TV brand has been in crisis, and the role of market sales has been greatly weakened. In 2016, the sales of color TV achieved a breakthrough. The good results of the 50 million units were partly due to the low price promotion strategy adopted by the Internet brand, which led the brand of traditional color TV to join in the sale promotion campaign, and overdrew the consumption market in 2017. In 2017, when music TV was in financial crisis, some other Internet TV brands came out of the shortage of funds, unable to fight the market, making the Internet TV brand momentum decreasing in 2017.
One more important reason is that the panel price rose to the top in 2017. According to the data of the China electronic video industry association, from March 2016 to April 2017, the panel went through a price rise of 14 months, reaching a peak of 40%. Under the drive of cost, the average price of the domestic color TV whole machine has also risen from 3200 yuan to 3500 yuan. “The average price of the whole color TV set is 200 yuan, and the market consumption will increase by 1.5 percentage points.” General manager of the PRC, black division Peng Xiandong told the “Chinese electronic newspaper” reporter. This means that the increase in the price of the panel only makes the sales of color TV in 2017 reduce by 2.3 percentage points.
All these factors have driven China’s color TV market to winter in 2017. For the market in 2018, Bai Weimin, executive vice president of the China electron visual association, said in an interview with China Electronics News: “we are confident of this year’s market and believe that this year’s performance will be better than that of last year.” In Peng Xiandong’s view, the main reason for this judgment is that the panel price has been loosened this year. Now, he says, the price of 65 inches of liquid crystal panels on the market is about $300, down about 25% over the peak of $400 at the peak.
Panel, from 2016 to this year, the upstream display panel industry of TV has undergone major competitive patterns and changes in technical routes. SHARP, a major Japanese panel factory, fell into a mire of loss and was reluctant to accept aid from Hon Hai in 2016. The Korean manufacturer, Samsung, will focus most of its energy on the small and medium sized OLED panels, and LGD will focus on the large size OLED panel. The Korean panel factory has consciously weakened the investment in the LCD panel line in the process of technical route transfer. At the same time, the supply and demand of the whole liquid crystal panel industry reversed, from overcapacity to supply demand. In particular, the size of the television has evolved to a large size, and the price of a large size liquid crystal panel is rising. The Chinese mainland panel factory seized the opportunity to invest in the generation LCD panel production line. By the year July 2016, there were about 8 high generation panel lines put into operation in China, and 6 high generation LCD panel production lines were being built. However, as the panel plant usually takes 2 years from construction to production, the tension in the supply of liquid crystal panels continued from 2016 to the first half of 2017.
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