LED rise 3D preheat flat market set off a change prologue

Market dynamics

Market size growth is not expected, manufacturers seek new profit growth point

2010 is a year of peace. The global economy has experienced a rebound in the past year after adjustment, all walks of life have begun a new strategic plan. In the Chinese market, thanks to the promotion of government policies, the consumer electronics market in the past year, there have been varying degrees of growth, especially flat-panel TVs once again walk in the forefront of all products. According to GfK (GfK Chinese) National LCD TV retail projection data, the first half of 2010 LCD TV market overall size of 15 million 170 thousand units, the first half year of 2009 grew by 55.2%, while sales rose 42%. The first half of the overall color TV market size of 18 million 630 thousand units, the proportion of LCD TV in the entire color TV market has reached 82%.

Although the first half of the market size rose more than 50%, but this figure is expected to rise at the beginning of the industry more than 70% of the total is still a certain gap. The reason is mainly related to the overall economic environment. Slow down the pace of global economic recovery, especially in the European market is experiencing a two hit, affected by this, since the first half of the domestic stock market has been a shock to the market down trend, the main consumer retail investment is not a small blow; and the national housing market with the introduction of the new deal, has been in a state of overheating of the real estate the industry has finally slowed down. However, the two quarter of the sharp decline in the volume of real estate investment and investment behavior of the divestment of the winter, but the LCD TV market caused a certain impact.

Due to the market boom is less than expected, coupled with intense competition in the early stages of the LCD greatly reduced the profit margins, resulting in even a loss of business operators situation. So looking for new profit point, improve the state of the market stalemate has become the most important issue now. And now the answer given by the public, are pointing to the led. In the first half of this year, LED TV also deliver the goods to become the focus of the largest TV market. Since its debut in 2009, just a year, LED has quickly occupied more than 10% of the entire LCD market share, and this figure is still rapidly expanding. According to GfK (GfK China) 100 LCD TV city monthly monitoring report shows that in 2009 May, LED sold only 2376 units, in 2009 October, the number increased to 16955, and in just the past 2010 May, LED TV sales reached 114719 units, the year-on-year growth rate of over 4700%!

We know that the LCD TV to 2010 years of rapid growth in 2009, is the home appliances to the countryside and with old change new government spending to stimulate policy support, and the LCD market price war intensified it. But in retrospect, whether plasma TV or LCD TV manufacturers in just launched a long time spent on the market were cultured to LCD TV as an example, from the listing to sell nearly 5 years of experience, now why LED TV a launch that has such rapid growth?

1, LCD TV price competition is becoming increasingly fierce, manufacturers want new profit growth point

As we all know, in the past three years, LCD TV market competition is very fierce, the price is much higher than other products. According to GfK (GfK China) National LCD TV retail projection data display, LCD TV in the past two years, the average price from 8255 yuan fell to 4389 yuan, or more than 46%, especially the 32 inch main section size, the average price dropped to 3200 yuan, the domestic brand 32 inch average price in 3000 yuan more within, the price has dropped to near cost line (estimated according to the international market the latest LCD panel price). All manufacturers are facing enormous cost pressures, to seek new profit growth point has become the subject of all. LED is undoubtedly the best solution to the new technology as a selling point, to re promote the high-end market sales and vitality, and enhance the average unit price and critical profit margins.

2, consumers sought after new technology, LED TV has become another boost

Consumer electronics market, technology innovation is always the biggest temptation for consumers. Due to the rapid development of science and technology in recent years, new technologies are applied in the civil field of electronic products faster, shortening product life cycle, consumer electronics market trend is more and more close to the FMCG field, with the advantage of new products quickly became the darling of consumers, but there is no warm-up period ang long. Especially in the Chinese so that the rapid development of the market, new technologies and new products to cater to the old people's psychological. As HD before Full and 100Hz technology can quickly accepted, although domestic TV signals can not even meet the basic conditions of the application of these new technologies, but the market is the first step in recognition of them, and is now consumers buy LCD TV features standard.

It is in this context, LED has become the largest market in the first half of this year, just a year's sales accounted for more than 20% of the total share of the LCD market. Of course, due to the rapid price of LED, for the existing LCD products also have a certain impact, and LED as a high-end product, the number can not make up for the vacancy of low-end LCD products. In addition, some manufacturers put a lot of resources into the promotion of LED R & D, the original LCD products to further reduce the driving force. These factors are in a certain