TV prices continued to drop in the first half of 2014

According to statistics released by Ovid Consulting, compared with the same period in 2013, the color TV industry in the first half of 2014 experienced a large decline, and the market showed that the product structure was continuously upgraded and upgraded, but the price continued to decrease.

The price continues to decline The data from Ovid Consulting shows that in the first half of this year, the total domestic TV market was 20.93 million units, which was a year-on-year drop of 9%; the sales amount was 69.6 billion yuan, a year-on-year drop of 15%. “We have drawn a five-year average, although negative growth is currently occurring, but overall it is still above the average line. Therefore, the significant decline in the color TV market in the first half of this year is not a recession but should be defined. For the return,” said Peng Jianfeng, assistant secretary general of the China Electronics Video Industry Association and director of the research and consulting department.

Data shows that in the first half of this year, the year-on-year decline in sales of color TVs was higher than the year-on-year decline in sales. In the second quarter of this year, the sales volume of color TVs was 10.03 million units, down 8% year-on-year; sales of 33 billion yuan, a year-on-year decrease of 18%. From January to June this year, the domestic color TV market retail sales of 69.4 billion yuan, the value is lower than the five-year average line of 72.7 billion yuan. Peng Jianfeng believes that the main reason for this problem is that product prices continue to decline.

Ovid Consulting's data show that in January the average price of color TV market was 3,424 yuan in June to 3,095 yuan, the price drop of 9.6%. In the second quarter, compared with the same period of last year, the unit price of the whole machine dropped by more than 10%, including 30-inch, 40-inch, 50-inch and 60-inch size segments. The price fell by about 20%. The decline in prices has exceeded the size of the growth rate and the speed of product upgrades. Dong Min, general manager of Ovid Consulting Black Power Division, believes that the growth of low-end product sales in the rural market and the rapid development of online channels are the main reasons for the decline in the average market price. “From the market segmentation level, the sales volume of the first-tier cities has dropped by 22%, while the rural market has declined, but it is lower than the first-tier city market.” Dong Min said in February, 1,000 yuan -1999 The sales of yuan products accounted for 5% of the increase in January, mainly due to the significant increase in sales of low-end products in the rural market during the New Year's Day. During the May 1st period, the faster-growing mid-range products were 3,000 yuan to 5,000 yuan. In the first half of the year, the total market share of 4,000 yuan or less has reached 81%.

The high-end trend shows that the average price of products has continued to decline, but the prices of resources such as land, labor, logistics, and transportation, as well as prices of upstream panels have not dropped significantly, which has brought certain pressure on the company's earnings. One of the important measures for companies to resolve the pressure is to push the product structure to the “high, large, and intelligent” transformation and upgrading.

Aowei Consulting statistics show that with the advancement of panel technology, perfection of TV systems, and rich software content, the penetration rate of high-definition, large-size, and intelligent products has been rapidly increased. In the first half of this year, the penetration rate of Ultra HD products has reached 10%, with a total sales volume of 2.07 million units; the penetration rate of 50-inch or larger large-size products has reached 24%, and the total sales volume is 4.96 million units; the penetration rate of smart products has reached 55%, and the total sales volume has reached 55%. 11.61 million units. “The 4H products are particularly prominent in the first half of the year.” Dong Min said that in January, the penetration rate of 4K products was only 7%, and by May 1 it had reached 15%. However, he believes that the lack of content is still the bottleneck of product development. According to the survey, 20.8% of consumers are willing to pay for high-quality 4K TVs. About 93% of consumers said they can accept rents or on-demand fees within 20 yuan. It can be seen that the consumption patterns and consumption habits of consumers paying for content are far from being formed.

Aowei Consulting expects that in the second half of the year, low-definition, small-size products will be phased out. Technical upgrading of products will be the focus of maintaining product prices and increasing brand premiums.