Second and third-line TV brand opportunities still exist

In the face of increasingly fierce domestic market competition, the second and third-tier TV brands have not retreated. “After the home appliances go to the countryside, the number of color TVs in the 3rd and 4th markets will increase substantially. The overall increase in the color TV market is not large every year. We are facing more severe market competition.”

On December 21, 2012, the third batch of high-efficiency and energy-saving flat-panel TVs for energy-saving products benefiting people’s projects was released, and 26 TV companies were short-listed. In addition to those well-known domestic and foreign color TV companies, almost half of them are color TV companies that are not well known to consumers in China's first-tier cities. Among them, some are CRT TV companies whose plate era has declined, some are export-oriented enterprises that mainly focus on the export market, some are IT companies in the cross-border color TV industry, and some are panel manufacturers. Although the types are very different, these second- and third-tier TV brands are facing the same situation - to seek a development path in the Chinese color TV market where the brand concentration is already high.

Limited domestic market share

In 2012, the days of Chinese color TV companies were not so good. In the first half of the year, the sales volume was almost in the doldrums. Fortunately, the situation improved in the second half of the year, and companies took advantage of policies to make up for the first half of the year. Most second- and third-tier brand companies interviewed by the reporter said that the overall economic situation has indeed affected the color TV sales in 2012, but through the efforts in the second half of 2012, the sales volume is expected to be the same as in 2011, or a slight increase.

“Actually, there are more than 100 enterprises that can produce color TVs in China, large and small, and there are about 20 or more companies that are more active and have brands.” Bai Weimin, vice president of the China Electronics Industry Association, frankly stated, “With the front line Compared with the brand, the survival space for these small companies is not large.” Statistics show that in 2012, the six domestic brands and Sharp, Sony and Samsung three foreign brands in the liquid crystal market share has been close to 90%. This means that in China, only 10% of the LCD TV market left by the second and third line brands and the CRT TV market is shrinking.

"The financial crisis in 2008 forced many export-oriented color TV companies to return to the domestic market. The implementation of home appliances to the countryside has enabled many companies to see opportunities for development in the domestic market." An industry analyst said, "After all, the first-line brands are The popularity of the rural market is not high, and everyone can stand on the same starting line to compete. Home appliances to the countryside has become an opportunity for many companies to return to the domestic market and establish their own brands."

In addition to the six domestic brands, AOC, Xoceco, Panda, and Leroy appear in the list of home appliances for rural areas that were announced at the end of 2008. Since then, the list of successful home appliances to the countryside has become increasingly large, in addition to foreign brands have joined, the number of successful second and third-tier TV brands also increased sharply, Chuangjia, BOE, Nuoyuan, Suojia, Kawano and other brands are also on the list. The tri-level market has become a place for these brands to show their skills. “Now consumers are increasingly demanding brands, and first-tier color TV brands have also successfully used the “home appliances to the countryside” policy to successfully explore the three or four-tier market. This has also squeezed the survival space of the second and third tier brands in the domestic market to some extent. "Bai Weimin analyzed it.