2020 is destined to be an extraordinary year. An epidemic”black swan” event broke our normal life and economic rhythm. Almost all walks of life are under pressure to move forward, and the color TV industry is no exception. According to the latest data released by Aoweiyun.com, the retail volume of China’s color TV market in 2020 will reach 44.5 million units, a year-on-year decrease of 9.1%, and the retail sales of 120.9 billion yuan, a year-on-year decrease of 11.7%.
In fact, the color TV industry in 2020 will see the phenomenon of”falling in volume” is expected and unexpected. In recent years, the development of my country’s color TV industry has encountered a bottleneck. Since 2017, it has officially entered the era of stock. The color TV industry has seen a”fall in volume” for several consecutive years. It is not surprising that this situation will continue in 2020.
However, the occurrence of such a large”fall in volume” phenomenon is unexpected. In 2019, my country’s color TV retail sales fell by 2.0%year-on-year, and the decline in 2020 reached an astonishing 9.1%. It is not a good thing for the color TV industry. Although most of the reasons are attributed to the impact of the epidemic, the color TV industry is still facing great pressure.
The color TV industry in 2020 will be under pressure and the volume will fall, but the market has also shown some changes.
Change 1:LCD panels usher in an upward cycle
In fact, for many people, they don’t pay attention to the price trend of LCD panels. They only know that color TV brands are fighting price wars, and LCD TVs are becoming cheaper. As everyone knows, the color TV brand’s confidence in the price war comes from the continuous decline in the price of LCD panels. The price of this component, which accounts for nearly 80%of the cost of color TVs, is falling. Color TVs know that with the price war, they are getting cheaper.
However, since 2020, LCD panels have ushered in a continuous upward cycle. In the first quarter of 2020, LCD panels ushered in a slight increase, but they ushered in a decline in April and May. Starting from 6 fish meal, panel supply and demand were tight, and panel prices began to enter a continuous upward cycle. In just one year, LCD panel prices rose Nearly 70%.
Industry insiders predict that the growth rate of LCD panels will pick up in 2021, will continue at high prices for a period of time, and then finally return to a stable state, which is inseparable from the global LCD demand and pattern.
First, the epidemic disrupted the production rhythm of enterprises, coupled with rising supply chain material prices, which led to price increases; second, the epidemic increased the demand for home office, study and entertainment, and increased the demand for LCD products; finally, Samsung, LGD, etc. will launch LCD panel production in the future, and competition will decrease, which will stabilize.
Change 2:Color TV demand shifts to replacement demand
After more than 60 years of development in the Chinese market, the industry has grown The new market demand and the secondary purchase demand change to the replacement demand of the stock market. China’s color TV demand power shifts, and the industry demand model changes from a dumbbell to a spindle.
In the past, the price of color TV was not cheap, and not every household had a color TV. However, with the continuous improvement of people’s living standards and increasing income, it has become very easy to buy a TV. Since the era of LCD channel CRT, the color TV industry has ushered in a period of rapid development, and as the price of color TV becomes cheaper and cheaper, TV opportunities have become popular.
TV is a must-have product for the family. I believe that almost every household has a TV. With the advent of the smart TV era, the demand for replacement has become the main driving force of the current color TV industry demand, and the second purchase demand The further increase in growth will become a new round of color TV growth point in the future.
Change 3:Consumer behavior shifts to online
2020 is a very special year, and it is also a very special year for the online market. A prosperous year. When the epidemic hit at the beginning of the year, the offline market was almost stagnant, while online sales ushered in explosive growth. Enterprises have turned to e-commerce platforms, and transformed online sales through live streaming and social platforms.
According to the total data of AVC’s omni-channel push, the retail volume on the color cable accounted for 64%, an increase of 6.4%over the same period last year, and the retail sales accounted for 50.4%. An increase of 10.2%in the same period last year. While online consumption has become the mainstream, e-commerce platforms are also actively seeking to sink the market and improve the third- and fourth-tier networks to further expand the market.
Change 4:Large-size trend continues to grow
The process of large-size TV market in China will continue in 2020, 65 inches The above products accounted for 25%, an increase of 6.5%over the same period last year; the average size for the whole year of 2020 is 52.4 inches, an increase of 1.5 inches.
According to data from Aowei Cloud Network, in 2020, 55-inch LCD TVs ranked first with a 29.5%market share, and products over 65 inches accounted for 25%, a year-on-year increase of 6.5%to 2.8%. The growth rate has become the fastest growing size. First-tier TV brands include Samsung, Hisense, Skyworth, TCL, and Internet brands Xiaomi, LeTV, etc. The mainstream product sizes cover 55, 65, 75 Inches, large size has become an irreversible trend in the future.
Change 5:From a price war to a value war
In 2020, LCD panel prices will continue to rise, and terminal Prices have also risen sharply, ranging from 300 to 500 yuan or more than a thousand. In the face of rising prices, the color TV industry clearly lacks driving force.
Maybe because of the continuous increase in panel prices, or the lack of innovation driving force in the domestic color TV industry, the overall quality of color TVs is constantly improving. In particular, innovative display products such as quantum dots, OLEDs, and lasers have increased in popularity this year, and laser TVs in particular have achieved growth against the trend and become the only color TV category with positive growth.
In addition to the highlights of innovative display technology, the color TV market segment has also ushered in contrarian growth, such as social TV, game TV, Educational TV and other sub-categories, scene segmentation will be the future trend of the color TV industry. This trend will also drive the color TV industry to shift from a price war to a value war.
Although my country’s color TV industry will move forward under pressure in 2020, 2021 is still full of opportunities. Aowei Cloud predicts that in 2021, my country’s color TV market demand is still in a period of consolidation, and the market size will be 43.96 million units, down 1.2%year-on-year; price wars have improved and the market has returned to structural reforms. The retail sales scale is 1,311 yuan, an increase of 8.4%year-on-year.