For the PDF version of this report, please see the end of the article (Author, analyst: Tianfeng Securities Sun Qian Li Zhenni)
Smartphone brand enters the traditional TV industry review
is to explore how mobile TV brands compare to traditional TVs Brand characteristics. This report reviews the history of Xiaomi, , Huawei, , OPPO company, and the history of the release of black power products; statistics of the three major brands’ existing TV sizes, price segments and market performance, and comparisons with traditional TV manufacturers Contrast; analyze the status of TV in the ecological layout of each mobile phone brand.
1. Development history On September 5, 2013, Xiaomi TV was officially released.
The Mi TV uses a 47-inch 1080P screen, Snapdragon 600 processor, and the price is 2,999. According to data from Zhongyikang, the mainstream size segments of TV retail in 2013 were 32 inches and 40-43 inches, which accounted for 30.91% and 21.59% respectively in September 2013. 43 inches was the mainstream large screen size; the average market price in the same period was At 4083 yuan, the average price of Xiaomi TV was significantly lower than the average market price. Xiaomi relied on a cost-effective strategy to enter the TV market as the beginning of its entry into the major home appliance track.
In 2014, Xiaomi released Xiaomi TV 2 in various sizes within one year, perfecting the product coverage size segment and price segment, and introducing 4K image quality for 48-inch and above models.
In 2015 and 2016, Xiaomi successively released the 70-inch Mi TV 3 and the 65-inch curved screen Mi TV 3s , both priced at more than 9,000 yuan, becoming a sign of Xiaomi TV entering the super-large screen and high-end fields.
On August 10, 2019, Huawei's sub-brand Honor (Honor has not yet been split and independent at that time) released the smart screen series,Become the first product of the Huawei smart screen strategy. Honor Smart Screen is equipped with a 55-inch 4K display, among which the Honor Smart Screen is priced at 3799 yuan, and the Honor Smart Screen Pro is priced at 4799 yuan.
On August 29, 2019, Xiaomi's Redmi Redmi brand released the first Redmi TV, which inherited Xiaomi's extreme price-performance strategy. The 70-inch 4K resolution is priced at 3799 yuan.
In September and November 2019, Huawei’s first smart screen was released, using 4K quantum dot screens. The price is biased towards the high-end field. The 65-inch Huawei smart screen v65 is priced at 6,999 yuan, and the 75-inch Huawei smart screen v75 is sold. The price is 12999 yuan.
In the second half of 2019, Huawei initially established a TV product pattern that covers the low-price market with glory and Huawei covers the high-end market.
On October 19, 2020, OPPO released two smart TVs for global consumers for the first time, OPPO Smart TV S1 and OPPO Smart TV R1, officially joining the TV industry competition.
Among them, S1 is positioned high-end, equipped with a 65-inch 4K quantum dot screen, priced at 7999 yuan; R1 is positioned high-quality, divided into 55-inch and 65-inch versions, both with 4K resolution, priced at 3299 and 4299 yuan respectively.
2. Product line layout
2.1. Size distribution
Compared with traditional TV brands, the wide and complete TV size segment layout and the large number of SKUs, mobile phone manufacturers are in the TV market The size segment and SKU layout are more targeted; traditional TV brands have been deeply cultivated in the TV field for many years, and the number of SKUs is ahead of mobile phone brands, and the size segment layout is more comprehensive while each has its own characteristics.
mobile phone brand:
1) Benefit from first-mover advantage and product line accumulation,Xiaomi has the most complete black power product matrix among all current mobile phone brands. At present, the number of Xiaomi SKUs is 42, which has covered the size segment from 32 inches to 98 inches, and the lowest price has dropped to 888 yuan, with the most concentrated products between 32 inches and 65 inches.
2) The number of Huawei TV SKUs has reached a relatively complete level. The size segment is concentrated in the 55-, 65-, and 75-inch large-screen market. There is currently no layout for the small-size segment.
3) OPPO, as the latest mobile phone manufacturer to enter the domestic TV field, its product matrix is still in its infancy. Its TV size segment focuses on 43, 55 and 65 inches, and there is no layout for the super-large screen segment of 75 and above.
TV brand:
1) The number of Hisense SKUs is 93, and the size segment including laser TVs spans from 43 inches to 100 inches. The number of SKUs in the 55-inch + 65-inch mainstream size segment reaches 43, which is the most concentrated product.
2) The number of Skyworth SKUs is 47, the size segment is relatively scattered, most of the products are distributed in 50, 55, and 65 inches, and the number of SKUs is 23, accounting for about 50% of the number of SKUs.
3) The number of TCL TV SKUs is 54, which is less involved in the field of small sizes. The number of SKUs under 55 inches is 7, accounting for 14% of the total SKU. Most of the products are concentrated in the medium and large screen sizes above 55 inches.
2.2. Price distribution
After entering the TV field, the mobile phone brand basically continued its product positioning in the mobile phone field, and to highlight its own positioning, the overall mobile phone brand TV The price band layout is more concentrated; the traditional domestic TV brands as a whole have their own brand advantages and pricing characteristics, and have achieved a wider price range with the blessing of the number of SKUs.
mobile phone brand:
1) Xiaomi TV is the main cost-effective route, and the average price of all channels is below the average market price.
According to data from Zhongyikang, the online end: the average market price of Xiaomi TV in 2021 is 2,319 yuan, a year-on-year increase of 46.9%; the average price of Redmi TV is 2,320, a year-on-year increase of 49.2%, and the overall average price of online channels is 2,635 yuan.
Offline: Xiaomi TV has an average market price of 2,330, Redmi TV has an average price of 3488, and the overall average price of offline channels is 2,764 yuan. Although the average market price will increase to a large extent in 2021, Xiaomi products are still concentrated in the low price segment.
According to Taobao official flagship store price statistics, the mainstream price range of 40-inch to 75-inch TVs is between 2000-5000 yuan. On August 10, 21, Xiaomi’s new product launch conference officially released two new OLED TVs, namely, the Mi TV Master 77” OLED, which is positioned upwards, and the Mi TV 6 OLED, which has a high-standard OLED screen.
The current Xiaomi products continue to extend to the high-end field under the premise of the main price-performance ratio, reflecting the company's trend of two-way efforts to high-end and younger TV products.
2) Huawei products are positioned as high-end products, while Honor products are positioned as mid-range. The online average prices of Huawei TV series are all above the average market price, and the offline average prices of Honor are below the average market price.
According to data from Zhongyikang, the online end: the average market price of Huawei TV in 2021 was 4,791 yuan, a year-on-year decrease of 28.6%; the average price of Honor TV was 3,098 yuan, a year-on-year decrease of 3.8%.
Offline: The average market price of Huawei TV is 6515 yuan, down 6% year-on-year, and the average price of Honor TV is 3104 yuan, down 5.2% year-on-year. The price range of Huawei products is smaller than that of the Mi series. The mainstream price range of 55-75-inch TVs is 3500-8000 yuan.
TV brands:
Hisense , TCL , Skyworth have achieved a comprehensive layout of low, medium and high-end price bands.
Among them, Hisense TV and TCL TV in the 50-75 inch size area mainstream price range are concentrated in the 2000-15000 yuan; Skyworth TV is limited by the more dispersed SKU distribution, 50-65 inch size area mainstream The price range is concentrated in 2000-10000 yuan.
Figure 3: Comparison of Xiaomi TV's average price and market average price (yuan) Figure 4: Huawei's TV's average price and market average price comparison (yuan)
3. Market performance
3.1. Online market
TV retail online has shown obvious advantages and its proportion is still increasing. In the context of mobile phone brands represented by Xiaomi relying on their online channels Advantages, continue to catch up with traditional TV manufacturers in terms of sales.
In July 2021, Xiaomi series + Huawei series + OPPO online sales accounted for 34.1%, and Hisense + Skyworth + TCL + Haier online sales accounted for 32%.
The performance of mobile TV brands in domestic online channels is evenly equal to that of traditional TV brands, and the overall market share is stable at around 30%.
1) Xiaomi series: Currently, Xiaomi maintains its leading position among mobile phone manufacturers.
According to data from Zhongyikang, from January to July 2021, the online end: Mi TV’s cumulative sales volume from January to July 2021 is 2207.7 thousand units, with a market share of 21.9%, ranking first in the market; red The cumulative sales scale of Mi TV is 707.9 thousand units,With a market share of 7%, it ranks sixth in the market.
The online market size of Xiaomi + Redmi is 29156,000 units, with a market share of 28.9%. With the brand appeal and cost-effective strategy of its online channels, Xiaomi has made it stable to occupy a high market share online.
2) Huawei series: The market share of Huawei series products is temporarily low.
According to data from Zhongyikang, from January to July 2021, the online end: Huawei TV’s cumulative sales volume from January to July 2021 is 167.1 thousand units, with a market share of 1.7%, ranking 12th in the market; Honor The cumulative TV sales scale is 149.5 thousand units, the market share is 1.5%, and the market ranks 13th.
The online market of Huawei + Honor is 316.6 thousand units, with a market share of 3.2%. The mid-to-high-end pricing of the Huawei series restricts product sinking and increased sales. We expect its audience to be relatively narrow. According to data from Zhongyikang, in July 2021, the online market for products below 3,000 yuan accounted for 72.1 %, while only three Huawei TVs are priced less than 3,000 yuan.
3) OPPO: In terms of sales, OPPO’s sales scale is at the bottom of the market
According to Zhongyikang’s data, the cumulative market share of M1-M7 in 2021 is only 0.3%, due to the late entry into the TV field With a lack of superimposed product lines, OPPO is in the initial stage of development in the TV market.
3.2. Offline market
Traditional TV manufacturers have complete offline channel layout and promotion capabilities, high barriers, and offline mobile phone brand penetration span_span2 2 At a low level.
According to data from Zhongyikang, the cumulative sales volume of Xiaomi TV from January to July 2021 is 43.0 thousand units.The cumulative sales scale of Redmi TV is 56,000 units, and the market scale of Xiaomi + Redmi offline is 486,000 units, with a market share of 1.5%.
The cumulative sales volume of Huawei TV from January to July 2021 is 67.4 thousand, the cumulative sales of Honor TV is 0.4 thousand, and the offline market of Huawei + Honor is 67.8 thousand, with a market share of 2.1%.
In comparison, Hisense’s annual cumulative sales market share is 22.8%, TCL’s sales market share is 20.7%, and Skyworth’s sales market share is 17.2%.
4, AIoT ecological layout
mobile phone brands generally regard TV as the core product layout of smart homes. We believe that the logic behind it is that mobile phones and TVs are the core screens for going out and at home respectively. If these two screens can be better connected, the connection and control of other smart home peripheral products will take the initiative.
On November 19, 2019, Xiaomi confirmed the IoT category strategy 1+4+X for the first time, and released Xiaomi's IoT industry interconnection solution.
Xiaomi is not the first to deploy the Internet of Everything. From the past, relying on the mobile phone business to complete the scene extension through the hardware layout is an important logic for Xiaomi's development, but the rich product categories and ecology make Xiaomi face the boundary in the open IoT ecosystem Vague question.
So Xiaomi confirmed for the first time that its category strategy on IoT is 1+4+X, clarifying the positioning of each product in the AIoT ecosystem. Among them, 1 is a mobile phone, 4 includes TVs, smart speakers, routers and laptops , and X is other products provided by eco-chain companies and cooperative companies. In Xiaomi's IoT strategy, TV is positioned as the core product second only to mobile phones.
In the continuous advancement of the mobile phone + AIot strategy, Xiaomi continues to enhance the synergy between Xiaomi mobile phone and IoT products. For example, Xiaomi officially released the "One Finger Link" technology in October 2020, by pointing the phone to the TV Realize directional control.
as of 2021H1,Xiaomi achieved 374.5 million AIot connected devices, a year-on-year increase of 34%; the number of users of more than five AIoT connected devices was 7.4 million, a year-on-year increase of 44.5%.
2021H1 Xiaomi's IoT products have accumulated revenue of 38.98 billion yuan, a year-on-year increase of 38%. By enhancing the connection between mobile phones and TVs, and strengthening the closed loop of large and small screens, Xiaomi realizes the mutual drive between the AIoT ecosystem and TV.
With the support of the AIoT ecosystem, OTT profitability logic has been strengthened.
Xiaomi conducts a large number of users and services of mobile phones to the TV field through closed-loop large and small screens and AIoT ecology, and realizes the realization of Internet service content.
Compared with the hardware business, the profitability of the OTT business is stronger. In 2021H1, Xiaomi Internet Services achieved revenue of 13,604 million, accounting for 8.2% of total revenue, gross profit of 9,968 million, accounting for 34.0% of total gross profit, and gross profit margin as high as 73.3%.
Among them, TV Internet services continue to contribute part of the total revenue of OTT: In addition to advertising revenue, as of June 30, 2021, Xiaomi TV paid members increased to 4.7 million, a positive increase of 17.1% year-on-year.
At the end of 2020, there are 4.3 million paid members. Assuming that the average number of paid members in the past six months is 4.5 million, according to the price of 49.8 yuan/month for film and television members, 2020H1 TV paid members will contribute 1344.6 million in revenue, accounting for total Internet services About 10% of revenue. With the increasing trend of paying TV users, it is expected that TV products will contribute higher profits to Xiaomi in terms of software.
Before Huawei’s first TV release in 2019, on June 27, 2019, Huawei announced the implementation of a 1+8+N full-scene strategy on its terminals. “1 sun” refers to mobile phones, “8 "A planet" refers to the eight major businesses of tablet, TV, audio, glasses, watches, car machines, earphones, and PC.And "N satellites" refers to the extended business of mobile office, smart home, sports health, audio-visual entertainment and smart travel.
When announcing the full-scenario strategy, Huawei’s 8 satellite product lines have not yet been involved in TVs. Two months later, Huawei launched the first Hongmeng system smart screen. Huawei's entry into the TV industry in order to achieve a full-scenario strategy proves the necessity of TV in the AIoT ecosystem.
At the Wisdom Life conference where the TV was first released in 2020, OPPO also launched its new IoT brand proposition-Wisdom Life.
theme is based on human technology, beautiful design and seamless experience, giving people a warm and comfortable life.
OPPO will build three circle-level product systems around the three scenarios of health, entertainment, and home, enrich the IoT ecosystem through independent research and development and ecological cooperation, and achieve a new experience of multi-terminal and cross-scene smart integration.
In OPPO's Internet of Things ecosystem, TV is the core entrance to link homes to realize smart homes in addition to mobile phones.
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report original name: " 2021W35 Weekly Study: Smartphone Brands Entering the Traditional TV Industry Review "
Author and analyst: Sun Qian1span_spanspan_span2 For more PDF versions of the report, please log on to the [Yuanzhan Think Tank Official Website] or click on the link: "Link"
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