Internet e-commerce vendors once competed for a lot of market share by means of low-cost subsidies, but price wars killed one enemy and lost 800. As profitability deepens and panel prices continue to rise, mainstream Internet TV makers are bidding farewell to price wars, and are getting closer to the lucrative high-end market. Whether it is the torment between enterprises, or the loss of publicity during the sales season, all indicate that 2017 will be the beginning of the brutal elimination. The future of Internet smart TV is obviously no longer a price competition, but a comprehensive comprehensive competition of hardware, software, content, brands, etc., it is time to subdivide.
Internet TV price war no longer works
Since the internet TV station's uptake in 2015, in order to win at the starting line, Internet manufacturers have come to the “price butcher†and quickly win over users with low-cost subsidies. In 2017, the long-lasting price war will no longer work. The mainstream Internet TV manufacturers not only started the price increase mode, but also recently changed their previous low-price strategy.
New pricing strategies for Internet TV have changed. On April 5th, the Internet TV brand Microwhale launched the “Drunkness†thin A series of high-end products of Smart Voice TV 2.0, including 55-inch and 65-inch products, priced at RMB 8,999 and RMB 16,999, respectively. Earlier, LeTV released new 55-inch and 65-inch TVs at the same high prices of 8,999 yuan and 13,999 yuan respectively. In the past, Internet TV manufacturers adopted cost-based pricing or even negative-profit pricing models. They valued high cost-effectiveness, and now they are starting to get closer to the lucrative high-end market.
It is worth mentioning that "low allocation and low price" has become a new feature of the industry. In March of this year, Xiaomi released a new product "Millet TV 4A series", the main cost-effective and intelligent voice interaction, 43-inch TV is priced at only 2,099 yuan. Under low prices, it is the reality of low allocation, which is in contrast to the usual practice of low-cost or high-cost Internet TV.
Obviously, Internet TV manufacturers are playing down the price war.
Panel prices caused price war difficult to sustain
Why did Internet companies abandon the "price war" to grab a sharp weapon?
If profitability issues are stuck in the throat, companies are overwhelmed. According to data from Ove Cloud Network, China's color TV sales volume was 50.89 million units in 2016, an increase of 7.8% year-on-year; however, sales were down 1.8% year-on-year to only 156 billion yuan. This is already the third consecutive year that the domestic color TV industry has not increased its revenue, and the "competition" of the price war is not small. For manufacturers, long-term and low-price competition will create profit pressures, creating a vicious cycle, leading Internet TV products to fail to carry higher-new and attractive technologies.
Affected by rising costs of upstream panels, labor, and raw materials, the price war on Internet TV is difficult to sustain. Taking Stormwind Group as an example, its TV revenue in 2016 was 930 million yuan, but the TV-based hardware operating profit was -1.4 billion yuan, which temporarily dragged down the net profit of Stormwind Group's shareholders at the listed company by nearly 70%, resulting in losses. Mainly because of rising raw materials such as TV panels. It is reported that the panel is the main component of television, and its cost accounts for more than half of the total cost of the whole machine. In the past year, some panels have risen by 50%. Internet TV manufacturers have to adjust their development strategies.
Internet TV companies no longer have the competitive advantage and continue to play the price war. They will only drag themselves down. With the popularization of smart TVs, the gap between traditional TV manufacturers and Internet TV manufacturers has continuously narrowed, and traditional manufacturers have gradually opened up a world in the Internet TV market by virtue of their right to speak in the high-end market, manufacturing R&D capabilities, and advantages of channel suppliers. Following the launch of traditional TV manufacturers Skyworth, Konka, and Hisense respectively into the Internet TV market with "Cool", "KKTV" and "VIDAA", TCL has recently launched an Internet-oriented sub-brand "Thunderbird TV."
Internet TV industry ushered in a new round of killing
2017 is destined to be a bloody year for the television industry.
Liu Hongxin, the former president of Hisense Group, predicted that no more than three Internet TV brands could survive. According to LeJun, the new president, Liang Jun, believes that so many Internet TV brands are stuck in a market that will not grow at a high speed, which means that it is not your death or our lives. Some manufacturers will never allow new brands to occupy their own markets.
The new round of knockouts is about to kick off. It is not easy for Internet TV brands to find a way out of fierce competition.
For the Internet e-commerce vendors, on the one hand, we must strengthen the control of the supply chain. At present, the prices of many components such as TV panels have risen, and the price of these products can only be stabilized in order to maintain the competitiveness of their products in prices in a sinister environment.
On the other hand, we must bet on innovation. Internet TV ignited concepts such as "artificial intelligence" and "voice", but looking at current Internet television, only a handful of people can truly be called smart. Product innovation and technological change may not be the only way out, but it is certainly the right direction, either with an overall design that is bright, or with shattering features.
In addition, we must expand channels. Most of the channels for Internet companies are e-commerce, and how to get through the channels is very important. Finally, we need to increase customer stickiness. Internet TV is essentially a channel for the operation of content. Only with good content and good experience can the value of these channels be brought into play so as to obtain a steady stream of profits.
Smart TV/box information can focus on smart TV information network sofa butler (http://), China's influential TV box and smart TV website, providing information, communication, TV boxes, smart TVs, smart TV software, etc. Answering questions.
Internet TV price war no longer works
Since the internet TV station's uptake in 2015, in order to win at the starting line, Internet manufacturers have come to the “price butcher†and quickly win over users with low-cost subsidies. In 2017, the long-lasting price war will no longer work. The mainstream Internet TV manufacturers not only started the price increase mode, but also recently changed their previous low-price strategy.
New pricing strategies for Internet TV have changed. On April 5th, the Internet TV brand Microwhale launched the “Drunkness†thin A series of high-end products of Smart Voice TV 2.0, including 55-inch and 65-inch products, priced at RMB 8,999 and RMB 16,999, respectively. Earlier, LeTV released new 55-inch and 65-inch TVs at the same high prices of 8,999 yuan and 13,999 yuan respectively. In the past, Internet TV manufacturers adopted cost-based pricing or even negative-profit pricing models. They valued high cost-effectiveness, and now they are starting to get closer to the lucrative high-end market.
It is worth mentioning that "low allocation and low price" has become a new feature of the industry. In March of this year, Xiaomi released a new product "Millet TV 4A series", the main cost-effective and intelligent voice interaction, 43-inch TV is priced at only 2,099 yuan. Under low prices, it is the reality of low allocation, which is in contrast to the usual practice of low-cost or high-cost Internet TV.
Obviously, Internet TV manufacturers are playing down the price war.
Panel prices caused price war difficult to sustain
Why did Internet companies abandon the "price war" to grab a sharp weapon?
If profitability issues are stuck in the throat, companies are overwhelmed. According to data from Ove Cloud Network, China's color TV sales volume was 50.89 million units in 2016, an increase of 7.8% year-on-year; however, sales were down 1.8% year-on-year to only 156 billion yuan. This is already the third consecutive year that the domestic color TV industry has not increased its revenue, and the "competition" of the price war is not small. For manufacturers, long-term and low-price competition will create profit pressures, creating a vicious cycle, leading Internet TV products to fail to carry higher-new and attractive technologies.
Affected by rising costs of upstream panels, labor, and raw materials, the price war on Internet TV is difficult to sustain. Taking Stormwind Group as an example, its TV revenue in 2016 was 930 million yuan, but the TV-based hardware operating profit was -1.4 billion yuan, which temporarily dragged down the net profit of Stormwind Group's shareholders at the listed company by nearly 70%, resulting in losses. Mainly because of rising raw materials such as TV panels. It is reported that the panel is the main component of television, and its cost accounts for more than half of the total cost of the whole machine. In the past year, some panels have risen by 50%. Internet TV manufacturers have to adjust their development strategies.
Internet TV companies no longer have the competitive advantage and continue to play the price war. They will only drag themselves down. With the popularization of smart TVs, the gap between traditional TV manufacturers and Internet TV manufacturers has continuously narrowed, and traditional manufacturers have gradually opened up a world in the Internet TV market by virtue of their right to speak in the high-end market, manufacturing R&D capabilities, and advantages of channel suppliers. Following the launch of traditional TV manufacturers Skyworth, Konka, and Hisense respectively into the Internet TV market with "Cool", "KKTV" and "VIDAA", TCL has recently launched an Internet-oriented sub-brand "Thunderbird TV."
Internet TV industry ushered in a new round of killing
2017 is destined to be a bloody year for the television industry.
Liu Hongxin, the former president of Hisense Group, predicted that no more than three Internet TV brands could survive. According to LeJun, the new president, Liang Jun, believes that so many Internet TV brands are stuck in a market that will not grow at a high speed, which means that it is not your death or our lives. Some manufacturers will never allow new brands to occupy their own markets.
The new round of knockouts is about to kick off. It is not easy for Internet TV brands to find a way out of fierce competition.
For the Internet e-commerce vendors, on the one hand, we must strengthen the control of the supply chain. At present, the prices of many components such as TV panels have risen, and the price of these products can only be stabilized in order to maintain the competitiveness of their products in prices in a sinister environment.
On the other hand, we must bet on innovation. Internet TV ignited concepts such as "artificial intelligence" and "voice", but looking at current Internet television, only a handful of people can truly be called smart. Product innovation and technological change may not be the only way out, but it is certainly the right direction, either with an overall design that is bright, or with shattering features.
In addition, we must expand channels. Most of the channels for Internet companies are e-commerce, and how to get through the channels is very important. Finally, we need to increase customer stickiness. Internet TV is essentially a channel for the operation of content. Only with good content and good experience can the value of these channels be brought into play so as to obtain a steady stream of profits.
Smart TV/box information can focus on smart TV information network sofa butler (http://), China's influential TV box and smart TV website, providing information, communication, TV boxes, smart TVs, smart TV software, etc. Answering questions.
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