Can industrial optimization, which is facing a cold situation among color TV giants, reverse the industry's decline?

This year's color TV market is not as smooth as expected.

Since the rise in panel prices last year, the overall operating conditions of the domestic color TV industry have shown a certain degree of volatility this year due to the influence of the external environment.

According to the report “Brief Analysis of Color TV Market in May 2017” released by Aowei Cloud Network on June 22, the sales volume of color TV market in May 2017 was 3.11 million units, a year-on-year decrease of 10.2% and a month-on-month decrease of 7.1%. The sales revenue was 11 billion yuan, a year-on-year increase of 8.1% and a month-on-month decrease of 10.0%.

From this, it can be seen that although the sales of the color TV market in May this year have increased, the overall situation is still in a relatively difficult situation.

The downturn will continue. Instability is not only caused by rising costs.

It is reported that the net profits of most color TV manufacturers in my country are showing a downward trend. Among them, well-known manufacturers such as Hisense and Changhong are also included. This sharp decline has become the worst performance of the color TV market in recent years.

In terms of operating income and net profit in the first quarter, Sichuan Changhong's operating income was 16.629 billion yuan, up 7.93%, while Hisense Electric's operating income and profit both declined, with operating income of 6.703 billion yuan, down 5.98%.

Although it has been a while since the first quarter, the sluggish situation in the color TV industry in the first quarter has not improved.

Especially when facing the bleak predicament of the color TV market, heads of many color TV companies said that the color TV market is indeed under great pressure this year, especially the rising costs of raw materials and labor, which have put manufacturers' profit levels under severe test.

Industry insiders revealed that since the second half of 2016, the price of color TV panels has continued to rise for three quarters, with a long period and high amplitude, the longest in history. In addition, the concentration of color TV brands is low and there are many new brands, so the risks and impacts brought by cost growth are more severe. In addition, the multiple real estate regulation policies have also exacerbated the instability of the color TV consumer market.

Under the influence of multiple pressures, even traditional color TV brands with advantages in the upstream and downstream industrial chains cannot protect themselves. It is conceivable that those Internet TV brands that use low prices as their entry point will undoubtedly find it even more difficult.

Industry difficulties force industry optimization. What is the prospect of a new turnaround in the color TV industry?

It has been said that industrial optimization caused by consumption upgrading will be a new opportunity for TV companies. Judging from the current status of the industry, industrial optimization is also one of the few paths that most TV manufacturers must seize in order to move towards the future.

So far, high-end consumption in China's color TV market has become an important driving force for promoting industrial transformation. Moreover, with the increase in the per capita disposable income of Chinese residents, more and more consumers are beginning to pursue a better quality of life.

Under such circumstances, consumers' demand for TVs is shifting from cost-effective to high-end products. On the other hand, influenced by national economic policies, domestic color TV manufacturers will also usher in new opportunities.

Taking the high-priced and high-quality OLED TV as an example, this year, six domestic TV manufacturers have made it clear that they will vigorously promote OLED TV. At the same time, major Chinese panel manufacturers are also strengthening their OLED industry layout and plan to launch OLED TVs made by the Chinese industry chain this year. It is expected that the global shipment of OLED panels will reach 1.5 million pieces in a few years, a year-on-year increase of 78%, making 2017 the first year of OLED.

In addition, the overseas market is also an important expansion target for domestic color TV manufacturers, with a growth rate that even exceeds that of the domestic market, becoming the main pillar for color TV companies to seek development. Since last year, several domestic color TV brands have focused on markets such as Southeast Asia, North Africa, South America, and Australia, and have achieved impressive results. Their overseas market share has generally increased by more than 20%, and the growth rate of export scale of some brands has even reached more than 50%.

Although the color TV market has been in a state of exhaustion after a long period of low-price competition, the increase in costs has forced the optimization of product structure. In the long run, this may be a new turning point for the color TV industry.

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.