In the context of a new upgrade of consumption, the entire home appliance industry is facing huge challenges. As an important part of the TV industry, Internet TV has always been the focus of everyone's attention. Recently, with the successive release of semi-annual reports, the performance of Internet TV companies in the first half of 2018 has become increasingly clear. Whether it is the east wind overwhelming the west wind or the west wind upside down the east wind, the data will tell everything.
On the evening of August 29, Baofeng Group released the 2018 semi-annual report. The report shows that Baofeng Group achieved operating income of 792 million yuan in the first half of the year, a decrease of 4.21% year-on-year; the net profit attributable to shareholders of listed companies was -106 million yuan, a decrease of 775 million yuan from 15.72 million yuan in the same period last year. twenty two%. Among them, Storm TV achieved sales of approximately 460,000 units, a year-on-year increase of 29.7%.
Although from the data point of view, Storm TV was in a growth trend in the first half of the year, which is indeed valuable in a complex environment, but in July Feng Xin set a target for the TV business to sell 2 million units this year and 6 million units in the future. As for profitability, Feng Xin is also extremely confident: "Baofeng TV can enter a profitable period in 2019, and there should be at least one or two billion profit expectations in 2020 and 2021."
Obviously, even a quarter of the performance of 460,000 units has not been completed. The difference is far, and the pressure in the second half of the year will be great. According to Liu Buchen, an observer of the home appliance industry, Baofeng Group is betting on Internet TV for its future development. This is a very dangerous strategic transformation. The price ratio of the entire Internet TV industry is currently poor, and even the profitability of traditional TV companies is very poor.
Of course, Baofeng is also working hard to build channels in order to achieve a successful transformation as soon as possible. It is understood that up to now, Storm TV has achieved more than 7,000 offline retail stores, the number of stores increased by 15%, covering 2581 counties and districts across the country, effectively expanding the number of third and fourth-tier market channel stores; at the same time, Storm TV continued to increase the number of stores. , The traffic and conversion channels of customer acquisition at the retail end of the secondary market, as of July 2018, the coverage of offline regional home appliance chain cooperation has reached nearly 40% of the national total.
Therefore, Storm TV is not without development opportunities, on the contrary, there is great hope. Consumer electronics industry analyst Liang Zhenpeng pointed out, “Due to the break of the capital chain, LeTV has basically withdrawn from the Internet TV market. At its peak, LeTV’s annual sales of super TVs reached nearly 6 million units. After LeTV’s withdrawal, its market share will inevitably be filled by other brands. If Baofeng concentrates its resources on the TV business, there will still be the possibility of profitability and rapid development in the future."
In fact, the biggest challenge facing Storm TV is the funding issue. If the funding issue cannot be resolved, it is still a lesson for it.
At the beginning of this year, Watch TV with a background of state-owned assets was exposed to the crisis of breaking the capital chain. The relevant person in charge of Global Zhida said frankly in the media interview, "Because last year, Internet TV LeTV brought a bad head. When the problem emerged, many problems occurred. Investors’ confidence in Internet TV is discounted. Although Kanshang TV has a Guoguang background, its relationship with Guoguang is not so three-dimensional. The company’s leadership is currently seeking solutions and may develop some high-quality businesses. The sector is divided for financing, and some employees will also be properly arranged to the new industry chain."
At the same time, in March of this year, Micro Whale, an Internet TV brand that also practices the LeTV model, quietly completed its reorganization. After the reorganization, Micro Whale abandoned the previous content subsidy hardware model, and re-seeded market opportunities as a smart hardware company focusing on target users.
Deng Lifan, the new president of Microwhale, affirmed the initially verified Xiaomi model. "Except for Xiaomi, everyone’s life is not easy. LeEco was reorganized last year. Microwhale made a small reorganization in March. The storm is actually very painful and popular. Good, PPTV is constantly reorganizing. The market is fair, and it favors the most prepared team. But Xiaomi’s mobile phone to TV is a dimensionality reduction attack, and mobile phones are more competitive than TVs. We learned from the experience of mobile phones and finally came out. In the past. In the past three years, we have fallen into many pits in the field of hardware and encountered many setbacks. The supply chain and channels are all shortcomings."
Mi TV is undoubtedly rising to the industry benchmarkOn August 22, according to the first financial report released by Xiaomi, in the second quarter of 2018, Xiaomi Group’s revenue was 45.226 billion, and the adjusted net profit reached 2.117 billion. Specifically for Xiaomi TV, the second quarter Global sales increased by 350% year-on-year, ranking first in China. Throughout the first half of the year, Xiaomi TV has repeatedly won the first place in online sales, and 618 even won the first place in sales and sales on both JD and Tmall platforms.
In overseas markets, Xiaomi has also maintained its leading edge. It is understood that in the six months since Xiaomi launched its first Mi TV in India, its Indian business has also grown rapidly, with more than 500,000 Mi TVs sold. Considering that established TV brands such as Samsung have deep roots in the Indian market, it is no easy task to sell 500,000 Mi TVs in such a short period of time. The three models of Mi TV 4, Mi TV 4A 32†and Mi TV 4A 43†have emerged in the army of old-brand TV products, attracting a lot of attention and directly boosting Xiaomi's official website and Flipkart. The total sales of the three channels of com and Xiaomi home are more than 500,000 units.
According to data from India’s largest e-commerce website in July, Xiaomi TV has won 56.6% of the platform’s market share, and Xiaomi TV’s overall TV market share in India has exceeded 10%; Carrying Mi TV home shows how popular Mi TV is in the world.
To achieve such results, Wang Chuan believes that it mainly relies on the "high-quality, innovative, and cost-effective" that Xiaomi has always insisted on.
It is reported that in order to ensure high quality, Xiaomi insists on using first-line brand foundries and adopts strict big data quality control. In 2017, Wang Chuan promised to Lei Jun that the repair rate of Mi TV is twice as low as that of traditional TVs. The repair rate of Mi TV 4A 32-inch for 12 months from mass production is only 0.64%, which is far lower than the industry average.
In terms of innovation, Xiaomi TV has led the industry since its establishment and has become one of the few "technical schools" in the industry! , Released an 11-key remote control in September 2013 to simplify user operations; create independent speakers for TVs to improve TV sound quality; in 2015, the industry’s first split TV to solve the problem of smart TV upgrades and extend the life of TV; and Xiaomi launched in 2017 TV 4 astounded the US CES, the industry's first 4.9mm ultra-narrow frame immersive design, allowing Xiaomi TV to climb to the pinnacle of craftsmanship. In terms of systems, the PatchWall puzzle wall artificial intelligence system was released in 2016 to increase the speed of users searching for resources. In March 2017, the voice function was upgraded. The follow-up Xiaomi TVs will be fully built-in "Xiaoai Classmates", leading the popularization of artificial intelligence in the TV industry, and easy use by the elderly and children. .
In terms of high cost performance, Xiaomi’s board of directors made a promise this year: “The comprehensive net profit margin of Xiaomi hardware will never exceed 5%. If there is any excess, the excess will be returned to the user.†As you can find, Xiaomi The minimum price of smart TV is 899 yuan, and 65-inch TV is 3699 yuan. Each product is basically the most cost-effective product of the same size, which really makes consumers affordable and can buy with confidence.
Of course, in addition to high quality, innovation and high cost performance, Xiaomi pays more attention to the construction of channels in terms of channels. In the future, Xiaomi will not only increase the development of online channels, but also actively consolidate offline. In the context of consumption upgrading, we are committed to bringing the best products to consumers.
Huawei is eyeingBack then, video website companies used their content advantages to transform into Internet TV one after another, such as LeTV, Baofeng, Fengxing, and so on. This year, news of mobile phone companies transforming to TV is one after another. After the news that Huawei, OPPO, and vivo will enter the TV industry, OPPO and vivo have denied this, but Huawei has not confirmed the news, giving the outside world unlimited reverie.
Let’s first look at the performance of the mobile phone industry in the first half of the year. According to the “Analysis Report on the Operation of the Domestic Mobile Phone Market in June 2018†released by the China Communications Research Institute, the domestic mobile phone market shipped 196 million units in the first half of 2018, compared with The year-on-year decrease was 17.8%. Among them, domestic mobile phone brands shipped 176 million units, a year-on-year decrease of 18.6%.
In reality, Huawei's performance also makes people think that the cold winter may really come. In July of this year, Huawei directly reduced the provident fund from 10% to 5% in cities such as Beijing, Shanghai, and Jinan. The monthly salary of its employees was reduced by about 1,000 in disguise. At the same time, the news of the relocation of Huawei's R&D department is even more unbelievable. It is speculated that Huawei's transformation of TV is also out of self-help due to overwhelming costs.
So what are the advantages of Huawei as a TV? Unlike Xiaomi and LeTV, Huawei’s revenue in 2017 was nearly 100 billion U.S. dollars. It has the advantage of capital to operate a heavy asset business such as TV. It should have an advantage. It is also a leader in learning Xiaomi’s Internet marketing. The TV market’s copy of the Mi TV model can be said to be handy and handy, and may achieve better results than Mi TV.
In the past, Huawei has always talked about Xiaomi as an opponent in the mobile phone market. Now that Xiaomi TV is booming, Huawei's purpose of entering the TV industry is as well known as Sima Zhao's heart.
In the editor’s opinion, the Internet TV industry has developed to this day, although in the general environment, some companies have not had a good life. That is because they did not learn the essence in the process of copying the Xiaomi model and imitating the LeTV model. The problem, even like LeTV, failed to withstand the test in the capital chain. Of course, difficulties will always be present and will always be resolved. The road ahead is still far away.
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