Domestic TV makers three ills technical innovation is the way out

Domestic TV makers three ills, technical innovation is the way out

  In 1999, the eve of China’s accession to the WTO the World Trade Organization, domestic TV makers have a collective price surges. It was first launched by the CHANGHONG, Skyworth, TCL, quickly followed suit, trying to hit to cope with foreign TV brands at a low price. It also widely questioned in the media at the time. Do not help farmers agricultural innovation is

  After more than 10 years, domestic TV makers in the face of foreign brands such as Samsung, LG, still regard the price as the advantages, and large amounts of capital for marketing, concept, packaging gimmicks, hype blindly. Like SUHD, OLED, 4K HD, core display technologies such as surface still in foreign hands. Technically, controlled by others, like Foxconn factories; market, accounts for “amount” lost “quality”, low profits forcing stretched in terms of investment in research and development in two minds. Where are the cause of domestic TV? Where is the way out?

  Domestic manufacturers of the three “magic weapons”

  In short, the problem of domestic TV makers are in pursuit of scale effect grab market share in the process, undue importance to the price advantage and marketing tools, instead of ignoring the scale which should be shown by research and development and technological advantages. And when foreign manufacturers to introduce a uses innovative technology products, the domestic manufacturer will have to wait and see, and then longer follow suit.

  1, the price war

  Adept and keen to fight a price war, domestic TV makers have long been modus operandi to grab market share. Price help brands to quickly gain market share and at the same time, the industry paid a painful price. 1998 price war that has directly led to an industry-wide loss of 5.4 billion yuan of profits and domestic TV makers cannot afford the technology innovation and product development spending enough money on.

  Now, with cross-border music, millet and other Internet companies, price wars again the trend of escalation. Internet TV “cost price” model has not greatly improved its sales, millet TV 2014 annual shipments only 300,000 units, but such low prices for traditional TV makers poses great challenges, TCL, Skyworth and other domestic manufacturers have to respond in the same way, profit drop to a minimum.

  2, blind to follow

  2013 when Korean Samsung, LG has introduced surface TV, domestic TV makers to catch up with “smart TV” wave of excitement, opportunity for attention and cheering even once to create a wave of domestic TV makers will ubiquity of television illusion of reverse passive situation in the market in one fell swoop. Media coverage of one-sided sales data for comparison of smart TV, in order to highlight the competitive advantage of domestic TV, become accomplices of this illusion.

  In 2014, when the Hisense, CHANGHONG, Skyworth, TCL and other domestic TV giant return to God, and follow “surface TV”, the nearly a year has passed. High-end market almost by Samsung’s exclusive new surfaces, more than 80%. Seems this also confirms previous analysis of the industry: technology of Korean enterprises in comparison, domestic TV manufacturers for at least one year behind time, and more.

  Concept 3, fried, light quality

  In fact, not by domestic manufacturers always slower, 4K HD TV, the concept was once a hot, but in the end did not hold, foreign capital came from behind. Starting from 13, Skyworth, TCL, Hisense and so on before the foreign brands, the first play the 4K card, both in brand marketing and the in store promotions, 4K TV is regarded as an important selling point, 4 times as long as full HD picture quality, seemed to take it out. But the reality is, most 4K TV carried only a piece of the 4K Panel, even the most inexpensive, and lack the core 4K quality optimization techniques. In contrast, Sony, Samsung 4K TV, are equipped with the patented technology, able to upgrade to the General sources, reaching close to 4K-quality effects. You know, in the case of 4K lack of sources, this is in the eyes of consumers, “4K”, no matter what can more clearly. Samsung TV this year has even launched a reward “fair” pleasing features, picture quality optimized armed to the most frequently used set-top boxes.

  TV technology is still held by the Korean enterprises

  A few days ago, Japanese TV standard announced debt-burdened by sharp shrinkage in the global television, the same days several giants of the Japanese is not good, Toshiba, Panasonic has closed manufacturing plants in China, Sony’s TV business is in trouble. The recession of Japanese TV, TV before “three kingdoms” into “Han hegemony.” This is a great opportunity for domestic manufacturers, but compared with Korean companies, core technology and innovation in concept, the gap between us is clear.

  Samsung and LG as the representative of the Korea TV manufacturers have to use technological innovation and product upgrades, has been leading the industry for decades, and its innovative capacity and technical reserves should not be underestimated. Samsung recently launched strategic products “SUHD AO ultra high definition television”, for example, the product uses Samsung’s 14-year research and development of nano-crystalline semiconductor technology, more environmentally friendly compared to conventional quantum dots QD, lifting more than color expressiveness, is a full range of integrated quality improvement. Meanwhile, SUHD in design and industry leading surface technologies, more immersive audio-visual experience.

  While a cutting-edge display technology “OLED” also rests in the hands of Korean enterprises, and LG are advocates of the technology, it can expect OLED from Samsung to challenge. At present, the energy producing OLED screens only LG and Samsung. While OLED is subject to short life expectancy, high cost, difficult to become mainstream in the short term, but its unique characteristics of a flexible screen, thin organic, for the future of television “bendable” created the conditions. At present, Samsung has introduced the “can be straight, curved,” the concept of TV, but not the official go-to-market. Because of this, Korean brands in the context of the global TV market, cooling still maintained a growth momentum. Data show that in 2014, in Japanese domestic TV shipments are declining cases, Korean manufacturers sales in 2014 rose 1.56 billion dollars, the market share increased from 41.9% to 43.9% per cent (Samsung 29.2%, occupy the first LG 16.7% second). Sales of Chinese manufacturers reduce 2.316 billion dollars, Japan manufacturers sales decrease of $ 2.137 billion. Technology advantage of economies of scale in Korea TV makers who are fully reflected.

  Marketing is not a King, domestic television to take off first

  Chinese enterprises, especially household electrical appliance manufacturing, grab market share process is often too focused on marketing the value of products to enter the market in early May through the indiscriminate bombing of advertising and promotional activities and achieved certain results, but from the perspective of long-term development, overdrafts consumer brands and technology innovation, often pushing enterprises toward the abyss.

  Love VCD from glory to decadence in just 4 years, in the history of Chinese enterprises has become a textbook case. Hu Zhibiao threw 210 million Yuan, the founder took the CCTV, “King”, and money in the inviting director Zhang Yimou starred Jackie Chan, filming commercials, but was short-lived. Apart from Hu Zhibiao personal factors in the management, the biggest problem is that when other companies have entered the market, love does not maintain an advantage in technology opens up new market segments and profit, choosing instead to push down profits, eventually were crushed by sky-high advertising.

  Television, too, price surges have dominated by domestic manufacturers get the battered industry. However, the “price” has so far been domestic manufacturers as a marketing weapon, and “benefiting the concept of” kidnapping, attempted to create a “national industry standard-bearer” brand image. While the media is often interested in such reports, often encounter TV price with much fanfare, publicity. There was a veteran journalist says: “the media may be on television when, is marketing! ”

  When Korean TV makers such as Samsung and LG increasing innovation efforts, and successively launched SUHD, OLED, surface television lead the new trend of the industry of products, our domestic manufacturers are busy hyped concept, are busy telling stories, is busy chasing “smart” and “air”. However, marketing can only bring immediate benefits, lack of technical innovation capability of Chinese TV makers in the future was still full of bumpy road, in order to really achieve overtaking, medical technology leader in Korean enterprises we learn from there.

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