[Blue Technology Observation] Large-screen TVs are booming in sales and price declines have become a major feature of the color TV industry this year.
Since the advent of TV, people have been pursuing the pleasure brought by large screens, from 14 inches to 18 inches, and now the 100 inch super large screen.
In the early days, the high price made many consumers discouraged by large-screen TVs. Nowadays, with the decline in prices and the popularity of large-screen TVs, large-screen TVs are growing at a rate visible to the naked eye.
Data provided by Aowei Cloud Network shows that in the first half of 2022, the market share of TV sales of 75-inch and above was 35.91%, an increase of 13.92% year-on-year. In terms of price, the prices of many well-known brands of large-screen TVs have dropped to 2,669 yuan. It can be found through some e-commerce platforms that the prices of large-screen TVs of major brands are all lowering.
Why is the price reduction of large-screen TVs concentrated in the fourth quarter? We need to look at it from the following three dimensions.
First, the launch of new products will inevitably stimulate the price reduction of old TVs.
According to relevant information, a new technology is applied in the TV field every three months, and a new TV with new technologies is launched and sold every four months. TV technology is being updated at an unprecedented speed. Most importantly, the speed of technology updates and the speed of new products being launched exceed the speed of TV sales. Zhongyikang pointed out that in , the "starting standard" of large-size TVs will be upgraded from 55 inches to 65 inches, and the size will be expanded ten inches in just one year. Moreover, the sales of ultra-large-screen TVs will continue to grow. In 2022, the market share of 65 inches will increase to 25.5%, a year-on-year increase of 85 inches online and 159.% year-on-year; while the 90 inches online grew by 118.5%, and offline grew by 2316.2% year-on-year; 98 inches online grew by 432%, offline grew by 821%. Just a few months ago, there were still very few TVs above 90 inches to be consumed.
As new products are put into the market, the original products must be cleaned up by price reduction, otherwise, further backlog will inevitably aggravate the high risk of corporate inventory.
Second, it is to contribute to the annual financial statements
The fourth quarter is a big test for many manufacturers. How can I answer the year-end financial report to achieve better results? The answer is that price cuts drive sales more effectively. In fact, it is not only TV, but other consumer electronics categories have also opened the curtain of price cuts in the fourth quarter.
For example, in September and October, Gree Electric started a crazy price reduction mode, the new first-level energy-efficient air conditioner fell to 3,000, and the vertical Yunyi air conditioner, which is the first-selling sales, also dropped by 1,000 yuan. Not only the air conditioner, the , Xiaomi new mobile phone 12s released in July has also been reduced by nearly 1,000 yuan. The manufacturer's crazy price cut is undoubtedly for the sake of the year-end financial report. This answer sheet is better, and TV manufacturers are no exception.
The only thing that remains unchanged in the world is change, but the only thing that remains unchanged for TV manufacturers is that prices continue to change to lower levels. In 2010, home TVs gradually increased from 720P to 1080P; in 2014, 4K large-screen TVs began to emerge and entered the market at a more down-to-earth price; in 2018, Samsung officially released the world's first mass-produced large-screen 8K TV on IFA.
It can be seen that large-screen TVs are becoming more and more popular with consumers, and also provide incremental space for major color TV companies. However, with the repeated impact of the economic downturn cycle and the epidemic in recent years, the downward trend of the entire color TV industry has been particularly obvious. Public data from
shows that in the past three years, domestic TV terminal sales have been 48.94 million, 44.5 million and 38.35 million respectively, and the overall decline has accelerated; in the first half of 2022, the domestic color TV market retail volume was 16.36 million, and the annual shipment volume is expected to be only 34 million units, continuing to show a downward trend.
This year, the overall pace of the TV market has also fallen on the trend of price reduction. Since people who want to change TVs were replaced in the early stages of the epidemic, when the lockdown was blocked at home in 2021, they even changed in advance, overdrawing a considerable amount of TV consumption, and now oversupply has become inevitable.
Therefore, what we can foresee is that now, the fourth quarter is less than a hundred days away from the announcement of the year-end financial report. The most important e-commerce promotion Double 11 is also in November. Therefore, price reduction promotions, destocking and increasing revenue are a must-have option.The sales increase and market share growth brought about by the significant price cuts will be displayed in the financial report one by one, which may be a must-answer question every year.
Third, price reduction is an effective means to stimulate consumption
As mentioned above, large-screen TVs have been hitting bottoming since the original high price to the current price, which is inseparable from users' pursuit of large screens.
's sales and market share brought about by price reduction are obvious. For example, the crossover player Xiaomi TV EA43 has been ranked first in the TV sales rankings of major e-commerce platforms for several consecutive months using the price reduction market strategy. From the 1499 yuan released to 1299 yuan, the price was cut to 1299 yuan, the number one sales volume for two consecutive months. Then it continued to reduce the price from 1,299 yuan to 999 yuan, ranking first in sales for two consecutive months. Now the price has been reduced to 899 yuan and continues to dominate the top sales list. Price reduction has become a marketing method for Xiaomi and is undoubtedly very successful.
Perhaps real high-end TV users will not care about prices, but in the third year of the epidemic, the economic downturn has suppressed a large number of consumer demand, and the desire to buy has not recovered significantly. National Bureau of Statistics data also showed that in the first half of 2022, the per capita consumption expenditure of residents across the country was 11,756 yuan, a nominal increase of 2.5% over the same period last year, but after deducting the impact of price factors, it actually only increased by 0.8%.
micro data is reflected on the consumer side, and it is also expected that most consumers will tend to tighten. Taking Tesla as an example, in just 5 months, Tesla's four models have reduced their prices seven times, which greatly attracted the attention of users, and brought about a total revenue growth of 39% year-on-year and a 45% month-on-month increase; net profit increased by 131% year-on-year and a 218% month-on-month increase. It can be seen that price reduction attracts users and has become one of the main means for enterprises to destock, increase revenue, and embellish financial reports.
So, from this perspective, in the short term, if you want to truly capture the hearts of consumers, low-priced promotions may be the consensus reached by TV manufacturers to ensure growth at the end of the year.
