Anxious Internet TV: Caught between internal and external troubles
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Since 2017, we have not heard the voices of Internet TV brands impacting traditional TV manufacturers. On the contrary, the awakening of traditional TV manufacturers has caused the Internet TV, which has grown wildly for three or four years, to suffer growing pains. To make matters worse, the continued downturn in the domestic TV market has made the already crisis-ridden Internet TV even more dangerous. Since 2016, the domestic TV market has shown weak growth, and this trend has intensified in 2017. It can be said that the entire industry is not doing well. Some industry insiders believe that fortunately, Hisense, Skyworth, TCL and other old brands have deep foundations and do not need to worry in the short term. On the contrary, the situation of Internet TV brands is already worrying. The TV market continues to be sluggish, and Internet brands bear the brunt. After the emergence of Internet TV brands, the domestic TV market has experienced several years of excitement as traditional manufacturers and new brands competed with each other. However, due to slowing market demand and rising production costs, the domestic TV market has gradually entered a difficult development period since 2016, and by 2017, TV retail figures had dropped to a freezing point. It can also be seen from multiple industry reports and survey data that the demand for TVs in the domestic consumer market is decreasing. According to CMM's omni-channel data, the retail volume of color TVs in the first quarter of 2017 fell to 11.53 million units, a year-on-year decrease of 12.5%, the lowest in five years. The situation in the second quarter did not improve, but became worse. Taking the promotion node May Day as an example, the retail volume of color TVs during the period was 4.5 million units, a year-on-year decrease of 17.4%. What is more serious is that the online market fell by 4.7% year-on-year in the first half of 2017, and the offline market fell by 19.3% year-on-year. In CMM's view, the current situation in the domestic TV market is quite severe. With the overall weakness of the TV market, the growth of Internet TV has also entered a cold wave period, making the Internet brands, which were originally small in size, worse than the overall situation of the industry. According to data from Aowei Cloud Network, the market share of Internet TV brands fell by 4% year-on-year in the first half of this year. It should be noted that although Internet TV has been developed for four or five years, its sales volume is only one million. A 4% decline on this basis will make sales even bleaker. Take LeTV as an example. As the former leader of Internet TV, LeTV once achieved an annual sales volume of 6 million units and was once regarded as a spoiler in the industry. LeTV also set a sales target of 8 million units in 2017 because of its increasingly good sales. However, the sudden LeTV crisis made LeTV's TV plan a bubble. Data shows that LeTV's sales in the first half of the year were very bleak, with a year-on-year decline of more than 55%. Judging from LeTV's current situation, it is difficult for LeTV Super TV's sales to improve, and it may even continue to decline. Being overturned by the "gray rhino", behind the cold wave of Internet TV Around 2013, the development momentum of LeTV Super TV made many people see that there is "great potential" in the field of Internet TV. As a result, some traditional TV manufacturers began to build Internet brands, and many people without industry experience crossed over to do Internet TV. Regarding the rapid rise of Internet TV, the relevant person in charge of Zhongyikang told Dongdong Notes: "The advantage of Internet brands is that they understand the model of fan management better, understand marketing better, and have advantages in content." However, the bonus period brought by the cost-effectiveness of Internet TV has ended in 2017. It can be seen that LeTV Super TV, Baofeng TV, etc. have experienced varying degrees of decline, and small brands such as Weijing, PPTV, and CAN have gradually become more low-key. As a person who has experienced it firsthand, Kaohsiung Yong believes that the TV industry has long lacked innovation, and users' leisure and entertainment methods after returning home are no longer watching TV, so the gray rhino incident occurred in the TV market this year. Dongdong Notes recalled that this is indeed the case. The TV in my bedroom has not been turned on for more than a month. Kaohsiung Yong also mentioned another reason for the slowdown in the growth of the TV industry that he saw, which is the increase in TV retail prices caused by the increase in raw materials in the first half of this year. However, the reasons for the decline of Internet TV are more complicated than the industry as a whole. Dongdong Notes summarizes the main reasons as follows: First, the demand for TV market has declined. This year, the overall TV market has been cold. According to the report, the domestic color TV retail volume in the first half of 2017 was 21.81 million units, a year-on-year decrease of 7.3%. In this market context, Internet TV brands have entered a period of adjustment. In the view of relevant persons in charge of CMM, "After the rapid growth of Internet brands in the past few years, e-commerce and Internet brands have overdrawn some market demand." Second, the increase in panel costs has increased the price of TVs. One of the reasons for the rise of Internet TV is the price-performance ratio, but we know that TV panels account for about 70% of the cost of the entire TV. Under the pressure of rising costs for several consecutive months, TV manufacturers have raised the prices of their products. For example, LeTV, Xiaomi and other manufacturers have successively raised the prices of TVs. This is also the reason why TV sales in the first half of this year decreased, but retail sales increased by 4.3% year-on-year. "In fact, the reason is very simple. Last year, the price of raw materials rose, which led to a rapid increase in costs. We resisted for a long time, but this time the cost increase lasted too long. So we became the last TV manufacturer to raise prices." Kaohsiung Yong said. Third, consumption upgrades have made product quality the dominant factor in the market. In the past, people often compared prices when buying goods. Now, with consumption upgrades, people are paying more and more attention to product quality. "Hardware has once again become the dominant direction of the industry. Bigger and clearer products are the products that users prefer, including quantum dots, OLED, high color gamut, ultra-high definition, etc., which are the competitive advantages of a brand." A relevant person in charge of CMM said that the competitive advantage of Internet brands is not here. Their technological accumulation cannot be compared with traditional TV manufacturers. After all, traditional companies have been working in this field for decades, and the latter's Internet awakening has further squeezed Internet brands. Fourth, online channels have entered a stable period. According to CMM's observation of all channels, online channels have entered a stable period after a period of high growth. "The pursuit of more sales and a larger volume will inevitably face the problems of online and offline integration and the entry of a large number of low-tier cities and rural markets." At present, Internet brands have been seen doing this. " In addition, the problems of homogeneity and unclear profit model that Internet TV has always been difficult to overcome still exist today. Previously, the online content that Internet TV vigorously promoted is no longer an advantage. The content that each brand can provide to users is similar. Especially after video companies such as iQiyi and Tencent have cooperated with traditional TV manufacturers, Internet brands are facing greater pressure. If monetization relies mainly on advertising, it will bring a very poor user experience to users and affect brand reputation. Coupled with low-price competition, the pressure on companies will undoubtedly be greater. However, it is not all bad news for Internet TV brands. According to GFK data, the market demand for smart TVs is increasing, and young people are beginning to return to the living room. For flexible Internet brands, getting involved in artificial intelligence is already a new choice. In addition, Aowei Cloud Network predicts that panel prices will fall. In general, the current situation of Internet TV can be said to be under the double attack of internal and external troubles. Moreover, as traditional TV manufacturers are becoming more and more Internet-based and intelligent, manufacturers with strong cost control capabilities and rich technical accumulation are gradually showing a trend of strong getting stronger, which is undoubtedly a heavy blow to Internet TV brands. Some industry insiders believe that what Internet TV will face next is either a turning point or a reshuffle. As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity. |
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