"Kill" into the TV Circle for three years, Internet TV and traditional brands will all come together

Recently, Hisense and LeTV have played saliva, and the title of “April Sales Champion” has fallen on two different companies in the reports of different consulting companies and even the same consulting company.

Not to mention who is the real first, who likes to touch the porcelain and love brush presence. In recent years, the home appliance industry is changing due to the disruption of Internet companies. Traditional enterprises naturally have the advantages of brands, channels, and markets. Internet companies also have a steady stream of innovative factors.

After LeTV released the first super TV on May 7, 2013, Internet companies such as Xiaomi, PPTV, Microwhales, and Storms entered the television industry successively, gradually cracking the gap of traditional home appliance companies, and traditional household electrical appliance companies also From the very beginning, dismissively, he began to transform himself. In the end, he or she could achieve the same goal.


status quo

Sales volume is nearly 3 times higher than last year

Sales have always been the key to measuring the value of a product. Internet TV manufacturers are very secretive about sales. LeTV and Hisense all call themselves “kings of April.” Among the key data provided by LeTV is LeTV’s own platform data. Challenged by opponents.

Own platform is the sales channel that Internet companies are usually most willing to adopt, such as Leshi Mall and Xiaomi Mall, but it is difficult to verify the authenticity because it is controlled by the company itself. In addition, third-party online channels such as JD.com, Tmall.com, Suning.com, Gome.com, etc. are also common sales channels for Internet TV and, to a certain extent, also have a certain degree of representation.

On May 25th, an IT Times reporter compared the TV sales of several brands on the Tmall platform. In April, one of the “Double Kings,” one of which is LeTV, listed a 55-inch version in January 2015. The cumulative sales of 4078 yuan for 4K TVs was 29,445, and monthly sales were 937; the sales of three whale 43-inch, 49-inch, and 55-inch single items totaled 56804 units; the time for the TV to settle in Tmall was later, from this year's 3 From May to May 25, a total of 8,317 sets of five models were sold. Similarly, a 4K TV was launched in January 2015, and Hisense sold a 50-inch TV with a price of 3599 yuan. Its cumulative sales volume was 34,404 units and its monthly sales volume was 1985 units. Only from this one channel, the gap between traditional manufacturers and Internet brands is not large.

The Xiaomi House in Shanghai Joy City is the only official millet store in Shanghai where you can experience millet TV. On the afternoon of May 24th, the reporter came to this store. There were eight or nine customers in the store, but they were all watching the Xiaomi mobile phone. Almost nobody looked at the few millet TVs in the corner of the store. A salesperson told reporters that the number of customers who came to the store to buy TV sets was still relatively small.

The reporter learned from GfK (GFK) Market Consulting (China) Co., Ltd. that from January to April this year, in smart TVs, traditional corporate brands such as Hisense, Skyworth, and TCL accounted for 90% of sales, and Internet TV brands For example, LeTV, Xiaomi, Xiao Wei, etc., its sales accounted for 7.4%. Compared with 2% in the same period of last year, it has increased nearly 3 times. The increase in sales volume is directly linked to the various preferential activities of Internet companies. LeTV, a television installer, told reporters that since April 14th (Let’s watch hardware free day activities), he had barely rested, and at most, every day, To install LeTV in more than 20 households.

According to GFK's forecast, TV retail sales this year will reach 48.06 million, of which smart TV will account for about 80%. “Although smart TVs are now common, because of the weaknesses of Internet companies themselves, and traditional TV companies are doing what they can, they cannot subvert the traditional TV companies in predictable times.” GFK Black Power Industry Analyst Wei Qi told reporters.

However, Internet companies are also slowly self-blood making up these weaknesses.

Weaknesses: No control over core technologies

Change: Become a shareholder of a traditional manufacturer

Domestic OEMs for TV are becoming more and more. Manufacturers capable of producing TVs are distributed throughout the country. Foxconn, Siu Chi and others have full-scale OEM capabilities.

However, OEMs do not represent R&D strengths. In Wei Qi’s view, traditional TV manufacturers have their own R&D capabilities and factory manufacturing capabilities. “The screen is a very important component of televisions. Samsung has its own panel factory, and TCL is With its own upstream company, Huaxing Optoelectronics, and a complete R&D system, these traditional enterprises have firmly put the upstream resources of the supply chain in their hands, while Internet TV companies are light-asset operations and rarely have their own full R&D teams. , The true core screen technology, image debugging and backlight module design have no capital that rivals domestic TV makers."

Haier TV related sources told the IT Times reporter that Haier wanted to make the TV an open platform. Users can customize all aspects of the product, including size, screen, core functions, configuration, appearance, color, etc. Change the machine, according to their own needs as long as the upgrade module can continue to experience the latest functional applications, software and hardware upgrades.

According to statistics, from January to September last year, China's LCD TVs cumulatively shipped 36.172 million units, an increase of 3.5% year-on-year. Among them, Skyworth and Hisense shipped more than 6.4 million units, TCL ranked third, and all shipments came from The brand of its own production line. “Some Internet companies basically all rely on ODMs (design makers), brands to meet demand, and factories design and manufacture. Even if they are looking for a foundry, due to the large processing volume of traditional TV companies, the foundry will generally meet these companies first, and then meet the Internet TV companies. , so it is difficult to control costs and production capacity." Wei Qi believes.

In the absence of sufficient sales, Internet TV is relatively weak in the supply chain, and it seeks to complement the advantages of traditional TV manufacturers. Most of them use shares. After LeTV took a 1.9 billion share of TCL as the second largest shareholder, the micro-whale also appeared in the shareholder list of Konka Group with a ratio of 3.14%. LeTV and TCL currently carry out all-round cooperation in production, channels, chains, etc., TCL access to LeTV's content, LeTV uses TCL's overseas channels to expand the market, and TCL invested in China Star Optoelectronics a few years ago, in the TV panel area In 21% of the market, this business accounted for more than 50% of TCL Group's profits, making up for the loss of the entire TV business year after year. The cooperation of micro-whales and Konka is also similar. Micro-whales look at Konka's supply chain, technology, and channels. Konka has taken a look at the content of micro-whales and Internet resources. “I believe the TV industry will be three to five in the future. There will be a very big industry change in the year. Our capital cooperation with Konka is also in line with the trend of industry resource integration,” said Xiaohuai CEO Li Huaiyu.

As a latecomer to Internet TV, the popular TV has taken advantage of traditional industries from the very beginning, and has formed a “Ultradimensional Ecology” with five companies such as Oriental Pearl, Siu Chi, Haier, and Gome. Through double-capital structure and other capital measures, it will Companies involved in the five links of content, licenses, hardware, channels, and operations come together to form a complete ecosystem.


Soft Rises: Consumers Still Use Price as the First Choice Element

Change: Content charges are slowly accepted

The prospect of Internet TV with content and market development is usually modeled as a model to attract the market with low hardware prices and attractive content. In the opinion of Leighton, the vice president of new marketing communications, the core of traditional TV sets The value is hardware, which constitutes more than 90% of the value of the terminal product. However, the value of the hardware itself is greatly reduced in the form of Super TV. It only occupies 1/5 of the value element, while the other 4/5 elements are exactly the same. It is behind the hardware, such as Internet applications, content, cloud platforms, and big data platforms.

From the background of LeTV, micro-whale, and popularity, it can be seen that various Internet companies compete for content.

The microwhale is backed by a giant tree of Chinese culture. Microwhale TV has aggregated applications such as Tencent Video, Mango TV, and VICE. The total number of movies has more than 8,500 movies, more than 100,000 TV shows, and TOP10 variety shows.
Popular TV has thus fully docked with the Oriental Pearl content library, sports is still the highlight of the Oriental Pearl, including 380 Premier League live broadcasts throughout the year, the total number of nearly 5,000 movies, domestic cinema film coverage can reach 98%, More than 40,000 hours of drama.

Users can compare members' prices when they cannot clearly identify which member has more gold. Hisense launched an envelope card member price is 490 yuan, Le super film and television members is 490 yuan a year, popular gold card members is 480 yuan a year, millet iqiyi members a year's price is 199 yuan, a small whale VIP member one The year is 199 yuan.

In fact, Internet companies have slowly realized the value of exclusive content. Taking LeTV as an example, according to LeTV's financial report in 2015, LeTV’s member revenue accounted for 20.8% of its total operating revenue, reaching 2.7 billion yuan. The champion told reporters that LeTV will take out 10 billion yuan for content input, and another 10 billion will be invested in ecological services. LeTV Sports will continue to invest RMB 6 billion to purchase top-level event copyrights exclusively for LeTV members, and another RMB 6 billion investment will be used to create a live experience and full-service products for members. According to reports, members of the Sun have paid for it. Sun's descendants have helped iQiyi bring about 190 million yuan in revenue.

"At present, the homogeneity of content is still relatively serious. This is why Alibaba buys Youku potatoes and Xiaomi invests in iQiyi. In fact, they all want to make a fuss about the content and strive to create differences in content. Users do not renew their fees, depending on Whether the platform can continue to provide exclusive and distinctive video content," Wei Qi said.

However, in spite of the fact that each family has been heavily involved in content, in the minds of consumers, content does not appear to have become an important factor in selection. During the interview, the reporter found that most Internet TV sellers will use the price as sales highlights when selling products, and rarely sell exclusive content as the selling point. The user’s selection criteria also stays at high cost performance and good screen display. , Surrounded by good sound, and other traditional TV selection criteria.

Soft underbelly: light asset operations sad "after-sales clearance"

Change: The laying channel under the line sinks to the 3rd and 4th line

When online shopping has just begun to become popular, the first to enjoy online shopping is the first-tier cities of Internet users. However, with the development of the network, this blue ocean market in the countryside cannot be overlooked. How to solve the “last mile” has become a problem that needs to be solved urgently in the e-commerce platform.

For Internet TV companies, they are now facing the problem of "sinking." For traditional TV companies that have been cultivating for decades in the home appliance market, their distribution stations and stores have taken root and are stationed in the hearts of local people. It is reported that Hisense, Skyworth and other brands have more than 20,000 sales points in third-tier cities.

According to data from GFK, in 2015, the sales volume of Internet TV in the northbound Guangzhou Guangshen accounted for only about 3% to 4% of the total sales volume, while in the rural areas it had to reach 35% volume.

To expand the third and fourth tier markets means the improvement of the logistics system and the expansion of physical stores. Wei Qi told reporters that Internet TV companies do not have their own logistics system. If they are concentrated on third-party platforms, the logistics capabilities of the platform will determine where your TV can go. “In rural areas, many agents and traditional TV companies have long-term cooperation. If Internet TV companies want to find them to act as agents, they must take more profits or choose to open stores directly, but the cost of opening stores is not low.”

The result of not enough outlets is to influence the user's perception. The micro-whale TV adopts the policy of “no change within one year”. If there is a problem with the TV, it will be sent back for replacement. However, Microwhale TV is also aware of the importance of channel sinking. At the beginning, it chose to build a O2O system with Tmall. With the help of Tmall’s open logistics system and deep cooperation with local governments, the goal is to establish 1,000 nationwide. The county-level service center has developed 100,000 villages to prepare for the development of post-sale maintenance at the township level. The reporter was informed that next month, the micro-whales will have maintenance points in 31 provinces and 218 cities across the country. By that time, maintenance will spread to 20,000.

Popular TV also docked more than 2,600 Haier after-sales outlets, simple issues can be handled in the maintenance point under the Haier line, complex issues directly to the factory.


Reporter observation

"Subverting" the color TV industry will be its own

The television circle of the past year is full of fighting meaning. From the frequency of the conference, we can see the strong smell of gunpowder. The sales war between Internet vendors and physical TVs is imperative from the day of birth. An appliance industry giant told reporters that there are only 5 or so remaining brands in 2016, and some brands with insufficient competitiveness will be eliminated. “This market is too grim, and the winner is the winner.”

Indeed, the golden growth period of the TV industry has passed. The market is becoming saturated. The fierce competition has become an indisputable fact. Just like the dispute between Hisense and LeTV, it actually reflects the influence of the current Internet TV brands, which is already large enough to allow The traditional giants are surprised.

As a new entrant to the industry, Internet brands do not have any advantages in upstream resource integration and product manufacturing. However, it is undeniable that the innovations in business concepts and profit models that they bring are slowly affecting the entire industry: On the other hand, through exclusive video content, it has enhanced consumer stickiness, attracted paying members, and made up for losses in hardware sales through various forms such as advertisements, system subsidies, etc.; on the other hand, through the operation of capital, cross-border cooperation was launched and joint ventures were launched. The party’s resources make up for its shortcomings in various aspects such as after-sales, logistics and manufacturing. In the Internet era, it is no longer a simple sale of hardware. Using the long-tail effect of the Internet and deepening the value of users will undoubtedly become the new direction for the future profitability of the industry.

At this point, the only way out is not to rely on selling hardware to make money. Whether it is possible to quickly expand the user base and in-depth operation of users becomes the key. However, traditional enterprises have not “waited” and they have created two new roads. Skyworth and Haier have created their own brands of the Internet, which can not only deal with the impact of Internet companies, but also protect their own brand value; and Hisense , TCL, etc. are using the online and offline models to differentiate the way, but also can deal with the ongoing price war.

The future of color TV industry is no longer the color TV itself, especially in the context of increasingly fierce price competition and increasingly serious product homogeneity, the development of the entire industry is also driven by the original pure technology, and two new trends are gradually derived. : Content and ecology, to seek new breakthroughs. Only by combining the resources of all parties and balancing the interests of different channels can we achieve a win-win situation of scale and profit.

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