Three Enlightenments from Japanese and Korean Color TV Profits for Domestic Enterprises

In the first half of the year, due to a number of factors, the domestic Internet TV industry did not achieve the expected growth. Liu Wei, who has just served as the deputy general manager of the Multimedia Industry Division of Tongfang Co., Ltd., said in an interview with a reporter from China Electronics News. It is understood that the subject of high inventory, single products and other factors, the domestic color TV industry Half a year's performance is not good.
Compared with domestic color TV companies, foreign companies adopting prudent product strategies and flexible transformation strategies have achieved good results in the first half of this year. Affected by factors such as the improved economic situation and the popularity of environmental protection and energy-saving appliances, Japanese TV companies Sony and Toshiba have achieved different levels of profitability. At the same time, South Korea's Samsung, LG also announced a large increase in earnings earnings. Experts pointed out that from the profit-making experience of Japanese and South Korean TV companies, there are at least three points worthy of consideration by domestic companies.

Moderately evade "problem products"

Xing also Internet TV, bad also Internet TV. The Internet TV market, which was highly hoped for by China's color TV companies, did not perform well in the first half of the year.
Let's take a look at the latest statistics released by TCL on multimedia services: Due to the poor sales situation in the Chinese market compared to the expectations at the beginning of the year, this led to slightly higher inventory of TCL TVs; given that the current Chinese color TV market is upgrading LED (light emitting diode) and Internet TV. In the second quarter, TCL conducted an inventory clean-up of conventional CCFL (cold-cathode fluorescent tube) LCD TVs. Affected by this, TCL Multimedia's LCD TV sales in June decreased by 41.42% year-on-year.
In addition to TCL, there are many domestic companies that use Internet TV as their development focus. In an interview with a reporter from China Electronics News, Tsinghua Tongfang Liu Wei also admitted that “the sales of Internet TV in the first half of the year were not much different from previous expectations”.
According to AVC's monitoring data, in the first half of 2010, the retail volume of Internet TV was 1.81 million units, retail sales accounted for 11% of all TVs, and retail sales accounted for 17%.
Although the Internet TV market has maintained a momentum of rapid development from the trend, from the perspective of the manufacturers' plans at the beginning of the year, this scale has not reached the expectations of the manufacturers. For the fiercely competitive Chinese color TV market, domestic brands can achieve better market effects through differentiation in Internet TV. However, from the actual results, the development of the Internet TV market has indeed been affected by the current macroeconomic policies.
The emergence of Internet TV has brought people from the traditional “TV watching” to the “playing TV” era. This function has become a major factor in the rapid growth of Internet TV.
In fact, for Internet TV, Japanese and South Korean companies such as Samsung, Sony and Sharp have also seen their development prospects. However, because of the uncertainties in the policies, foreign-funded enterprises have not made any effort in this area. Take Samsung as an example. As early as in the first half of 2009, when Samsung released new products, Kim Young-soon, president of Greater China Marketing Group of Samsung Group, clearly stated to the “China Electronics News” reporter that Samsung can launch TVs that can access the Internet at any time, but due to China’s radio and television The policy is not very clear, so it is not eager to promote it to the market.
The reporter found that Internet TV is not listed in the summary of reasons for the profitability of Japanese and Korean manufacturers.

Need to allocate resources from around the world

As of August 4, except for Xoceco, none of the other domestic color TV companies announced the financial statements for the first half of this year. The reasons for using securities analysts to summarize are that "the financial statements in the first half of this year are not expected to be good." In stark contrast to this, Japanese manufacturers such as Sony and Toshiba, as well as Korean manufacturers such as Samsung and LG, all released financial reports for the first quarter of fiscal 2010. The financial reports showed that under the leadership of the color TV business, all companies achieved A good profit.
Taking Sony as an example, although the appreciation of the yen was previously expected to have a negative impact on performance, Sony TV Group's sales in the first quarter of fiscal year 2010 increased by 3.8% from the same period of last year thanks to the sharply higher-than-expected performance of TV, PC and PS3 business in the first quarter. Nearly 1.7 trillion yen (18.663 billion U.S. dollars).
“In the first half of this year, the performance of foreign companies' financial reports was indeed very eye-catching. This aspect was related to their product strategies. On the other hand, because of the improved economic situation, the advantages of these companies with global resources were even more pronounced.” ZHU Lijun, Chief Appliance Analyst, Galaxy Securities Tell China Electronics News reporter.
DisplaySearch statistics show that over the past few years in the flat-panel TV market, Samsung, LG, Sharp, Sony and other companies have firmly occupied the top few shipments, thanks to their ability to coordinate global resources for marketing. On the other hand, Chinese enterprises have only TCL in the top 10 flat-panel TV shipments in 2009, and other companies are all out of ten. Therefore, few Chinese companies are able to achieve global joint sales.
Unable to mobilize global market resources will often cause products to have serious imbalances in supply and demand in a certain market. Taking the current LED TV as an example, under the guidance of companies such as Samsung, Sharp, and some research companies, China's LED TV market is extremely hot, but this pace is inconsistent with the overall development of the Chinese TV industry.
From the initial forecast of 3 million units to the current 10 million units, LED TV shipments will continue to increase. However, the reporter learned that not long ago, China's eight color TV companies went to Taiwan in China did not complete the expected goal of increasing the proportion of LED panel purchases, and the excessive development of LED TV market has caused domestic TV companies to rush but there is no good way to solve the traditional LCD High inventory of TV games. On the contrary, foreign companies can coordinate the global market to digest the inventory of traditional LCD TVs.

Consciousness and technology need to lead

From the loss of 1 billion U.S. dollars last year to the operating profit of 753 million U.S. dollars this year, from last year's turning losses into profits, this year has become the main force for the Group's profit, and Sony TV's development model is worthy of reference by domestic companies. Samsung’s pioneering marketing philosophy in the television field is also worthy of a good study by domestic companies.
Also taking the LED TV as an example, from the planning of early 2009, to the LED TV chip manufacturers to achieve "protective" cooperation, Samsung, LG and other foreign companies in the development of LED TV awareness and technology are ahead of the domestic color TV companies. Taking the 3D TV industry, which is gradually emerging, as an example, Sony and Samsung have once again become leaders in the popularization of technologies and concepts. In the past few years, Sony has been criticized by the industry for not actively transforming the television industry.
Domestic companies are not without opportunities. The reporter learned that from 2008 to 2009, domestic color TV companies launched a transformation and upgrade from the price war to the value war in the industry, thus laying the foundation for the status of domestic color TV companies in the Chinese color TV market, and the market share also declined from previous ones. It rose to 40% to 40%.
“At present, in the LED TV market, the overall share of domestic color TV companies occupies 60%, and the share of foreign brands is around 40%. In the National Day market, foreign brands will surely launch LED TV price wars. Domestic companies affected by the lack of upstream stocks may be able to Possessed a passive position.” Peng Xiandong, a research analyst at Yikang TV, told the “China Electronics News” reporter.
The reporter found that on the eve of the National Day, domestic companies will actively digest the inventory of traditional LCD TVs, and will also increase efforts to promote LED TV. However, the domestic brands to digest inventory, in the LED TV market is also limited by the panel supply shortage, which will lead to domestic color TV companies can not be fully involved in LED price war.
"The domestic color TV companies must not only meet the market demand in the products, but also must lead the industry in the consciousness. Only in this way can they play a leading role in the development of the color TV industry." Hao Yabin, deputy secretary-general of the China Electronics Industry Association, told "China Electronics News" reporter.