Anxiety Internet TV: Double-sided Attack on Internal and External Trouble

Internet TV brands have hit traditional TV makers, and this voice has never been heard since 2017. On the contrary, the awakening of traditional TV makers has caused growing pains for three or four years of Internet TV. With the rain falling on the side of the house, the continued sluggishness of the domestic TV market has led to even more dangerous Internet TV.

Since 2016, the domestic TV market has shown a lack of growth, and this trend has become even stronger in 2017. It can be said that the entire industry is not very good. According to industry insiders, Former brands such as Hisense, Skyworth, and TCL are deeply rooted and need not worry in the short term. Instead, they are Internet TV brands. The situation has been worrisome.

The TV market continues to be sluggish and Internet brands bear the brunt.

After the emergence of the Internet TV brand in the domestic TV market, the traditional manufacturers and new brands are facing each other and the industry has experienced a few years of excitement. However, slowing market demand and rising production costs have caused the domestic TV market to gradually enter a difficult period of development since 2016. By 2017, the TV retail sales figure has already fallen to a freezing point.

From a number of industry reports and research data, we can see that the demand for television in the domestic consumer market is decreasing. According to the data from Zhongyikang omni-channel, the volume of color TV retail sales fell to 11.53 million units in the first quarter of 2017, down 12.5% ​​year-on-year and the lowest in five years.

The situation in the second quarter has not only failed to improve but has been even worse. Taking the sales promotion node 51 as an example, during the period, the retail volume of color TVs was 4.5 million units, a year-on-year decrease of 17.4%. The more serious situation is that the online market in the first half of 2017 decreased by 4.7% year-on-year, and the offline market decreased by 19.3% year-on-year. According to Zhong Yikang, the current situation in the domestic television market is rather grim.

With the overall weakness of the TV market, the growth of Internet TV has also entered a cold wave period, making the original Internet brands with less bulk than the industry as a whole. According to data from Ove Cloud Network, the market share of Internet TV brands in the first half of the year dropped by 4% year-on-year. It should be noted that although Internet TV has developed for four or five years, its sales volume is only one million. On this basis, it will decline by 4%, and sales will be even worse.

Taking music as an example, as the leader of Internet TV, LeTV had a record of selling 6 million units a year. It was once seen as a spoiler in the industry. LeTV also set a sales target of 8 million units in 2017 due to better and better sales.

However, the unexpected LeTV crisis made LeTV's plan a bubble. According to statistics, sales of LeTV in the first half of the year were very bleak, with a year-on-year decline of more than 55%. With LeTV's current situation, LeTV's sales are unlikely to change, and may even continue to decline.

Overturned by "Grey Rhinoceros", Behind Internet TV Cold Wave

Around 2013, the development momentum of LeTV super TV made many people see the Internet TV industry "have something to do." As a result, some traditional TV manufacturers started to make Internet brands, and many people without industry experience made Internet TVs across the border. Regarding the rapid rise of Internet TV, the person in charge of Zhong Yikang told me to understand the notes: "The advantage of Internet brands is that they understand more about the mode of operation of fans, know more about marketing, and have an advantage in content."

However, the dividend period brought about by the cost-effectiveness of Internet TV is already over by 2017. It can be seen that LeTV and Storm TV have all experienced different degrees of decline, and small brands such as micro whale, PPTV, and CAN have gradually become more low-key.

As a personal experiencer, Kaohsiung Yong believes that the long-term innovation in the television industry is insufficient, and the entertainment after the user returns home is no longer watching TV. Therefore, a gray rhino incident occurred in the TV market this year. Understanding the notes recalled that this was indeed the case. The television in my bedroom had not been opened for more than a month. Kaohsiung Yong also mentioned another reason he saw a slowdown in the growth of the television industry, which was the rise in TV retail prices caused by the rise in raw materials in the first half of this year.

However, the reason for the decline of Internet TV is more complex than that of the industry as a whole. The main reasons for understanding the summary of notes are as follows:

First, the demand in the TV market has dropped.

This year, the TV market as a whole was in cold weather. According to the report, in the first half of 2017, the volume of domestic color TV retail sales was 21.81 million units, a year-on-year decrease of 7.3%. In this market context, the Internet TV brand has entered the adjustment period. According to the person in charge of China Health, “Internet brands have experienced rapid growth in the past few years, and e-commerce and Internet brands have overdrawn the needs of some markets.”

Second, the cost of the panel rose and TV prices increased.

One of the reasons for the rise of Internet TV is the price/performance ratio, but we know that television panels account for about 70% of the cost of TVs. Under the pressure of rising costs for several consecutive months, TV manufacturers have raised the price of their products. For example, LeTV, Xiaomi and other manufacturers have raised TV prices. This is also the reason why the volume of television sales decreased in the first half of this year and the retail sales increased by 4.3% year-on-year. "In fact, the reason is very simple. The increase in raw material prices last year caused the cost to rise quickly. We have resisted for a long time, but this time the price increase has continued for too long. Therefore, we have become the last TV maker to raise prices." Kaohsiung Yong said.

Third, the quality of products resulting from consumption upgrades has become a market-leading factor.

In the past, people often purchased goods at prices that were higher than prices. Now, as consumers upgrade, more and more people value product quality. "The hardware has once again become the dominant direction of the industry, and the bigger and clearer products are the products that users like, including quantum dots, OLED, high color gamut, ultra high definition, etc. It is the advantage of a brand competition." Said that while the Internet brand's competitive advantage is not here, its technology accumulation can not be compared with the traditional TV manufacturers. After all, traditional enterprises in this field have been cultivating for decades, and the latter's Internet awakening has further squeezed the Internet brand.

Fourth, online channels entered a period of stability.

According to Zhong Yikang's observation of the entire channel, after a period of high growth, online channels have now entered a period of stability. "The pursuit of more sales, greater bodybuilding will inevitably face the integration of online and offline, the majority of low-tier cities and rural market access problems." At present, it has been seen that Internet brands are doing this thing. ”

In addition, the problem of homogenization and unclear profit model that Internet TV has been difficult to overcome has still existed. Prior to this, online content strongly promoted by Internet TV is no longer an advantage. The content that each brand can provide to users is very similar, especially when video companies such as iQiyi, Tencent and other video companies are cooperating with traditional TV manufacturers, and Internet brands are under pressure. Bigger. The realization of the basic reliance on advertising, it will give users a poor user experience, affect brand reputation, coupled with low-cost competition, the pressure of the enterprise will no doubt be greater.

However, Internet TV brands are not all bad news. According to GFK data, the market demand for smart TVs is increasing and young people are returning to the living room. For flexible Internet brands, getting involved in artificial intelligence is a new option. In addition, Ove Cloud Network predicts that panel prices will usher in a decline.

In general, the current situation of Internet TV can be said to be a double whammy between internal and external. Moreover, with the traditional Internet manufacturers, the Internet-based, intelligent, cost control ability, strong technology accumulation of manufacturers, gradually showing the strong trend of strong development, which is undoubtedly a heavy blow to Internet TV brands. Some people in the industry believe that the next Internet TV to usher in is either a turning point or a shuffle.

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