Upstream manufacturers to enter the LCD TV production to birth reduction potential

LCD TV in 2005, global sales exceeded 20 million units, accounting for digital TV sales amounted to RMB 30%, a year-on-year increase of 126%. So, China's LCD TV industry in the global counterparts in what role? Recently, held in Shenzhen "2006 Chinese high-definition digital TV forum, industry insiders agree that the domestic LCD TV market is multi optimistic, but the competitive reality can not be ignored, the domestic brands for sales market share at the expense of profits, the domestic brands should be through cooperation in technology research and development, marketing channels as the deeper alliance.

Optimistic about the market competitors

By the end of 2005, foreign brands launched into the market since the Chinese biggest one price cuts, price advantage makes the domestic manufacturers all gone, SKYWORTH, Changhong, Konka and other domestic color TV brands have to fight.

At present, although the Chinese market are 70% domestic brands, but the profits of has been made outside the LCD panel manufacturers." SKYWORTH Wang Dianfu color TV manufacturers to lose money to make up the dilemma is helpless.

The market research company deputy general manager of Ping leaf put forward on the meeting, many people optimistic about the LCD TV market competition is extremely fierce. Domestic Konka, SKYWORTH, Changhong, TCL and other industry giants, but also Hisense, Haier and other rising stars, and a number of IT manufacturers, OEM LCD manufacturers want to test the water market. In addition, the proportion of foreign brands LCD TV has been expanding.

The industry believes that the current domestic brand sales is in exchange for market share in the expense of profits, especially since May 2005, continued price war makes the domestic manufacturers to develop in competition with each other to reduce costs, rather than the development of core technology used in competition with each other. Now upstream manufacturers have to downstream production of materials to expand production, domestic brands are facing a double squeeze in the market and profits.

Huge potential price decline

Zaino company data show that in January this year, LCD TV penetration rate (i.e., LCD TV sales accounted for the proportion of TV) more than 20% of the city is only 7, more than 10% of the city is only 31, a huge market potential.

It is understood that, in 2005, the domestic LCD TV production more than 8 million 500 thousand units, accounting for the global market share of 36%, huge production potential. As prices continue to fall, the city's middle class spending power will become bigger and bigger, becoming the largest LCD TV group to buy.

In the face of blowout phenomenon of LCD TV, LCD manufacturers, industry analysis, the upstream enterprises and media channels and other one-sided phenomenon, make good LCD TV public opinion over other types of technology and TV; technology to further mature, expanding the ladder into the size of the TV, but also stimulate the domestic LCD TV doubled.

Win-win market

For domestic brands should be how to fight against the foreign brands and how to maintain the profit level of the problem, Ye Ping believes that the domestic brands in 2006 must be rational in the face of market competition, foreign brands have begun to use the price factor to control the market, domestic brands depend on the price in exchange for market competition means, will be in the future flat market competition gradually showing lack of stamina status. The lack of the upper reaches of the industrial chain, brutal price war makes domestic brands have enemies in front and rear.

Taiwan CMO TV panel affairs office director Chen Liyi suggested the domestic manufacturers and international manufacturers sales level there is a certain gap, should pay more attention to the use of high-tech, and put it into the marketing selling point, to occupy the market.

Insiders said that the price war is to give up thinking about marketing, domestic brands should do more marketing and service work. Domestic brands should be through alliances, strategic partners and other forms of cooperation in the technical research and development, marketing channels and other aspects of deeper cooperation to enhance the overall competitiveness. A good platform for domestic enterprises only reference to the development of LCD TV, grasp the dynamic industry, make timely strategic adjustment, improve operational efficiency, in order to break this vicious circle, share in the fierce competition in the LCD market, "a cup of soup".