Say goodbye to the savage growth of Internet TV and fight in the second half

In recent years, the Internet TV hot has never stopped. Recently, another Internet TV brand was born: On March 29, 2017, TCL released a brand new Internet TV brand, Thunderbird. However, the number of new brands born today is not as good as two or three years ago. It has been pointed out that Internet TV brands have experienced the first half of the staking and barbaric growth and are about to open the second half of intensive cultivation and value enhancement.


Did the Internet TV really arrive in the second half and if it really came, how should Internet TV manufacturers meet?
The second half begins?
Some Internet TV manufacturers pointed out that before 2017, it was the first half of Internet TV, and the first half was summarized: Traditional TV brands accelerated their entry into Internet TV, emerging brands carried huge amounts of money into the TV field; an endless stream of price wars, stars Single-product marketing, traditional TV brands, and Internet TV brands have launched a verbal battle each other. These are the core marketing methods of the first half.
At the same time, several Internet TV brand manufacturers expressed their views on Internet TV in the second half. According to popular television, in the second half of 2016, panel prices have risen, which is the collective pain of the TV industry and forced new brands to no longer use “parity” promotional tools. Some Internet brands that once relied on "parity" to expand the market have raised prices, and Internet TV brands have also turned to value competition. Watching television still points out that in the past, the single-player competition has been completely abandoned because of its large screen size and high cost-performance ratio. The competition between Internet TVs has been comprehensively upgraded to multi-dimensional competition, which is the development of functions and scenarios for Internet TV. Platform operations put forward more stringent requirements.
Analyst Wei Qi of GfK Black Power Division also agreed with the opinion of Internet TV in the second half. He pointed out that in the past two to three years, the Internet TV brand has been running fast on the two legs of price and content, and has achieved a good sales performance, but Now the price rise of the upper panel has cut off one leg of the Internet TV brand. After the traditional companies made up for the short content, the Internet TV brand lost another leg. After losing two legs, Internet TV brands have no advantage in the supply chain, after-sales service and experience. Internet TV has reached a hard and hard phase, and the second half is the most difficult for Internet TV brand manufacturers.
However, Peng Xiandong, general manager of the Zhongkang Black Power Center, believes that using the second half of the Internet TV to describe the current status of the Internet TV is not appropriate. It is more appropriate to use a certain stage to describe it. The rising cost of TV has prompted Internet TV brand manufacturers to consider the issue of continuing operations. Therefore, it is a necessary stage for all-round strategic adjustment from hardware to content.
The online advantage in the 3.0 phase was not as good as that of the former Internet TV. In a short span of four years, the proportion of Internet TV brand retail sales has reached 20%, becoming a new force in the TV industry. In fact, the three stages of the development of the Internet TV brand can be seen as Internet TV brand 1.0, Internet TV brand 2.0 and Internet TV brand 3.0. At each stage, Internet TV brand camps have different characteristics. In stage 1.0, the pure Internet company originated mainly from LeTV and Xiaomi. As a recruit, Xiaomi’s appeal in the TV field was not as good as in the smart phone field. Instead, LeTV took the lead in relying on various Internet marketing methods to open the door of Internet TV. In fact, during this period, traditional TV manufacturers have also launched Internet TV sub-brands.
After entering 2.0, that is, in 2015, from the beginning of the year to the end of the year, Internet companies continued to follow the footsteps of LeTV and Xiaomi into the field of Internet TV. New Internet TV brands such as Still, Storm, Popularity, PPTV, and Micro-Whale, along with LeTV and Xiaomi, continued their battles in the 2016 market. TV prices continued to bottom out, and sales have grown to varying degrees. At the same time, the upsurge in panel prices in the second half of 2016 has also caused a significant blow to them. In the face of rising costs, the TV prices of these brands have had to rise.
Nowadays, these Internet TV brands are already in the 3.0 stage. On the one hand, traditional TV manufacturers have made up for courses on Internet thinking, and Internet TV brands have much lower online advantages. On the other hand, subject to the price increase of the upstream panel, low-priced Internet TV branding cannot be used, and the competition between brands is still intensifying. Wei Qi revealed that the panel prices were relatively stable in the first half of this year, which is the most difficult for Internet companies. They have basically lowered their sales targets this year.
Turning to Value-Oriented All-Around Competition Whether it is the second half of Internet TV or the new phase of Internet TV, Internet TV has indeed faced the problem of panel price hikes. In an interview with a China Electronics News reporter, Wei Qi revealed that there are only four 8.5-generation LCD panel production lines this year. The yield rates of the four production lines are still climbing. Innolux and BOE have suffered a steep climb. HKC and China Electronic experience is insufficient, so LCD panel prices will remain high this year and will need to be eased by 2018. This is a big blow to Internet TV brand manufacturers. Even Mr Leung, the new President of LeTV, who has never spoken publicly, made a speech this year. He said that the television industry is working for panel makers. This shows that the representative of Internet TV brand makers - LeTV also do nothing about panel prices.
Panel price increases have caused more and more Internet TV brands to abandon low-price competition and turn to value-oriented all-round competition. Watching TV still said that it is not only from a single point of breakthrough, but also creating an industrial matrix consisting of Internet TV hardware, operating systems, applications, software, content, licenses, services, and channels, and starting from a global service, forming smart TVs to lasers. Projection, Hifi audio, all kinds of set-top boxes and other complete smart terminal system. The popular TV shows that in the TV Internet era, what the Internet TV brands have to do is bid farewell to the “parity” gimmick and guide consumers to truly “value discovery” to satisfy users’ increasingly colorful contents, systems, operations, applications and services. Big screen experience.
Apart from products, content, and services, the value section also has channels. Peng Xiandong pointed out that for the Internet brand manufacturers, this stage is the time to complement the basic elements, the content of the usual meaning to continue to strengthen the advantages, while the product part needs to improve product quality and user experience, at the same time, to make up for offline channels.
Now many Internet TV brand companies are laying offline channels, Wei Qi said in an interview with the China Electronics News reporter, but offline channels and e-commerce channels are very different, offline channels not only between retailers, but also The market environment in different regions is different. Internet companies have relatively little experience in this area. More importantly, Internet TV brand manufacturers' products have lower prices, which means that retailers' gross profit is also relatively low. They may be more willing to push traditional brands or joint venture brands with more profit.

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