Profit is more important than scale in color TV business

The sales volume of tens of millions of units is a sign of the huge size of Chinese color TV companies. However, the continuous decline in sales since the second half of last year is worrying. Whether the Chinese color TV industry can continue to maintain the same scale or continue to expand without policy support, some analysts believe that compared with scale, the profits of color TV companies are much more important.

Most internationally renowned companies place more importance on profits than on scale, which is why they refuse to engage in price wars. In contrast, Chinese companies are involved in price wars everywhere, and they have yet to establish true market competitiveness.

Nokia, Motorola, General Motors, and Toyota are becoming less and less popular - although these companies were once very glorious; today, people are more optimistic about Apple, Tesla, Facebook, and Amazon, which are all muscular companies.

Analysts in the home appliance industry pointed out that in the eyes of far-sighted companies, scale is a result rather than a goal, but most Chinese companies have turned it around, and scale has become the only goal to pursue. In order to make themselves look huge, short-sighted behaviors are common. As a result, we see the following results: there are many Chinese companies, but very few of them have international competitiveness. They have lost the two most important things in business operations: technology (products) and brand.

Relevant analysis shows that in the next 5-10 years, Chinese color TV companies will have to undergo a complete transformation, abandoning scale thinking and turning to quality growth, otherwise Chinese companies will not be able to compete in the international market.

Industry experts said that if half of Chinese companies establish the concept of "profit over scale", I believe the overall competitiveness of Chinese companies will be greatly enhanced, and a group of internationally competitive companies and brands will be born in China.

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.