Q3 sales increased by 8.9% year-on-year. Where are the opportunities in the color TV market next year?

There are only two months left in 2016, but the competition in the domestic color TV market is still intense, with price wars persisting, competitive warfare escalating, and technological competition continuing. The new and old brand camps are also further merging.

The color TV market is full of smoke, but the good news is that the color TV market environment has continued to improve in the third quarter just passed, and the market has remained prosperous. According to data from AVC, the retail volume of the color TV market in the third quarter of 2016 was 11.95 million units, an increase of 8.9% year-on-year; the retail sales volume decreased by 5.9% year-on-year to 35.3 billion yuan.

Real estate stimulates color TV sales, manufacturers promote sales in large numbers during the holidays

Entering the third quarter, China's economy not only continued the development momentum of the first half of the year, but also saw many positive changes. The contribution of consumption and service industries to economic growth has steadily increased, and some important indicators that were weak or declining in the early stage have stabilized and improved. According to data from the National Bureau of Statistics, China's GDP grew by 6.7% year-on-year in the third quarter, and the economic stabilization trend continued, which also affected the color TV industry.

The main reasons for the year-on-year increase in the retail volume of the color TV market in the third quarter are the following three points: First, the rise in real estate prices has released demand for home appliances. In the third quarter, the sales area of ​​commercial housing increased by 26.9% year-on-year, and the sales amount increased by 41.3% year-on-year, driving new demand in the home appliance market; second, consumer confidence has rebounded. From January to September, the total consumption increased by 10.4% year-on-year, the consumer confidence index was 105.6, and the consumer satisfaction index was 101.6, showing an upward trend; third, there were a lot of terminal promotions, with about 27 brand and channel promotions in the third quarter.

In the third quarter of 2016, color TV market promotion became the main way for brands to expand their market share. In the past few months, home appliance manufacturers have experienced important promotion nodes such as 818, summer vacation, National Day, and Mid-Autumn Festival. Some manufacturers have adhered to the usual practice of creating holiday promotions even if there are no holidays. In this regard, Aowei Cloud Network believes that in order to make promotions a sharp sword, companies should consider the following aspects:

1) Overall system communication including product release and strategic thinking; 2) Continuous exposure of corporate topics is conducive to brand communication; 3) The synergy of many hardware products presents an effective strategic arrangement; 4) Communication nodes and methods of new media and other communities. The fourth quarter is still the peak season for promotions, and promotions such as Double 11, Double 12, and New Year's Day will continue to stimulate demand release.

In addition, AVIC Cloud Network also predicts that the retail volume of the color TV market in the fourth quarter of 2016 will reach 15.29 million units, a year-on-year increase of 7.2%; the retail volume of color TVs in 2016 will reach 50.75 million units, a year-on-year increase of 7.5%.

Where are the opportunities in the color TV market in 2017?

Judging from the BP completion rate of key brands from January to September, traditional brands are still under great pressure. Internet brands are expanding their market share by continuously creating festivals, driving emerging consumption. According to the omni-channel data of Aowei Cloud Network, the market share of Internet brands in the color TV market in the third quarter was 22.5%, an increase of 11.8 percentage points over the same period last year; the market share of traditional brands was 63.3%, a decrease of 10.3 percentage points over the same period last year; the market share of foreign brands was 14.2%, a decrease of 1.5 percentage points over the same period last year.

The growth momentum of the color TV industry will shift to structural upgrading. Foreign brands still have obvious advantages in the high-end market. At the same time, traditional brands have begun to explore the mid-to-high-end market. In the third quarter, the penetration rate of traditional brands in the 6,000-7,999 price range was 65%, an increase of 7 percentage points over the same period last year. The penetration rate of Internet brands in the 8,000-9,000 price range was 3%, a decrease of 5 percentage points over the same period last year.

In other words, the decisive battle between traditional brands and Internet brands has arrived. So how will young Internet brands achieve overtaking in 2017?

Peng Jianfeng, deputy secretary-general of the China Electronic Video Industry Association, believes that there are two main opportunities in the color TV market next year. One is on the demand side after the rise of the middle class, and the other is on the supply side of technological change.

It is estimated that the replacement rate of color TV products will reach 5.5% in 2016. The replacement will lead to obvious differentiation of consumer demand, and improving product value has become the key. Consumers' focus on TV hardware is mainly on appearance, picture quality, system and content. Product upgrades that meet consumer needs are a way to tap value.

New technologies, as one of the driving forces for the development of the color TV industry, are the main way to upgrade products. Weng Zhenhua, general manager of the black-and-white electronics division of AVIC Cloud Network, believes that the current technology hotspots in the market are UHD (high definition), HDR (high dynamic range), and HCG (high color gamut). It is expected that HFR (high frame rate) and HQS (high sound quality) will become the next opportunity points for color TV product upgrades, forming a high-end product camp dominated by 5H.

At the same time, Fengxing Multimedia CEO Zhou Kun also made a prediction. He believes that in the next three years, traditional televisions will gradually disappear, PCs and tablets will gradually be marginalized in video and games, and TV will once again become the center of living room entertainment.

With the frequent occurrence of technology upgrades, corporate mergers and acquisitions, and brand expansion, I believe that there are still many exciting stories to tell in the color TV market in 2017.

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.