LeTV TV's ecological operation breaks the traditional price thinking

Yesterday, 60,000 LeTV TV Super TVs S40 Air and S50 Air were available for pre-order on Tencent QQ Space (http://t.cn/Rvak9y6). The number of reservations in 48 hours has exceeded 1 million. Judging from the current data ratio, it is equivalent to 17 people competing for one unit , which has overturned the existing fastest pre-order sales record for large home appliances.

Peng Gang, senior vice president of LeTV TV, said that the reason for choosing to launch new products on QQ Space was that they valued Tencent's huge advantages in users, reputation and traffic. The strong combination of LeTV TV and QQ Space will create a new era of social marketing of large home appliances. Both parties will also conduct more in-depth exploration in the fields of products and marketing.

I remember that when LeTV first entered the TV industry, it took on the role of a "disruptor". Compared with its technological innovation and the ecological experience of massive content, the most intuitive feeling of users is that LeTV first completely subverted the price of TV sets.

On June 10, LeTV released its new S-series TVs, the S50Air and S40 Air. The 40-inch S40 Air is priced at 999 yuan, bringing the price of 40-inch TVs down to 100 yuan. When Peng Gang, senior vice president of LeTV TV, announced the price, all the fans were excited. At the same time, peers in the TV manufacturing industry began to discuss: LeTV is a price butcher.

It is not difficult to be a price butcher. Shenzhou computers have always been famous for their low prices, but what about user experience? It is no secret that the price butcher model at the expense of lowering costs has been abandoned by the times.

In fact, when the global manufacturing industry is facing diminishing marginal returns and starting to actively transform and look for more sources of profit, world-leading companies such as IBM and HP have already packaged their manufacturing industries.

So, the world always needs manufacturing to produce products, so how can the manufacturing industry make a turnaround? The answer given by LeTV TV is ecological operation, which brings users products of excellent quality while breaking the traditional price thinking.

LeTV TV's Ecological Operation

The focus of operations is not limited to cost, but its power lies in operational innovation, that is, inventing and implementing ways of doing things that are completely different from those of competitors and creating unique operational characteristics. These characteristics can be converted into various forms of differentiated competitive advantages and strategic advantages.

LeTV's competitive and strategic advantages are based on its services built on the "platform + content + terminal + application" ecosystem.

The person in charge of LeTV TV said that LeTV Super TV has completely changed the traditional TV industry chain, transforming it from making money purely by selling hardware to continuously lowering hardware prices and achieving profits through backward value-added services.

However, some people always complain that LeTV TV's 490 yuan/year service fee is too expensive, and some even think that LeTV's service fee is a bundled sale. But don't forget that cable TV, which only lets you watch a few programs, also costs money every month.

At present, with the gradual standardization of the domestic film and television market, Qvod has collapsed, Xunlei has become more rehabilitated, pirated content has been removed from the shelves one after another, the copyright curse has become tighter and tighter, and charging for content has become a development trend.

LeEco has reduced its hardware profits, passed on the benefits to users, and relied on services to make profits, just to follow the current trend. Although many traditional TV manufacturers have begun to integrate content, the final form is just an aggregation platform. The content source does not belong to itself, and the film and television content is updated too slowly, which is not very attractive to users.

LeTV Super TV relies on LeTV.com to continuously introduce the latest content in film and television content production and copyright purchase, enrich film resources, and push them to users through the LeTV cloud platform, opening up the entire industry chain.

Some analysts said that in the new business model era, product prices are inversely proportional to user scale. The more users there are, the lower the product price. This time, LeTV's two new super TV products will be launched on QQ Space for the first time, occupying third- and fourth-tier cities, and the intention to expand the user base is very obvious. This is also LeTV's counterattack against traditional manufacturers, aiming to break the channel advantages of traditional manufacturers.

LeEco model cuts off the last profit of traditional channels

In addition to channel advantages, the most advantageous competitive advantage of traditional manufacturers is the user scale.

Traditional TV manufacturers have always believed that Internet companies such as LeTV and Xiaomi, as newcomers in the TV industry, are unlikely to shake up the current industry structure. In fact, due to diminishing marginal effects, huge shipments cannot reverse the trend of falling interest rates of traditional manufacturers in recent years. Since April, domestic color TV companies have successively announced their financial reports for the first quarter of this year. Hisense's net profit fell 8% year-on-year, and Konka's revenue fell 33% year-on-year. A senior person in the TV industry said that LeTV's price cut this time may also cut off the last profit of traditional channels.

From software to hardware, from content production to content distribution, LeTV has formed a closed loop of the industry chain, which is difficult for traditional TV manufacturers to compete with. More importantly, when the services of a company or a brand are gradually recognized by users and become a habit, the number of users will increase exponentially. The integration of LeTV's ecological services has made its brand image permeate every aspect of users' lives. It is only a matter of time before LeTV's user base increases.

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.