Internet + Promoting Industry Transformation Color TV as a Cross-Border Integration Pioneer

If LeTV was released on May 7, 2013 as a landmark event for Internet companies to enter the traditional color TV industry, the concept of “Internet Plus” has entered the color TV industry for two years. From the development of these two years, we can see that the color TV industry presents three major characteristics.


First of all, in the catalytic smart TV market, high and low prices will accelerate product structure upgrades.

The greatest value of the Internet lies in its ability to use information exchange and rapid dissemination features to help other industries improve operational efficiency and produce unexpected "hybrid effects." "Internet + color TV" for two years, the Internet to give color TV market is the biggest help is to "smart TV" concept to a large range of consumer, high-frequency transmission, so that intelligent on-demand, independent installation, iterative upgrades and other new features known. Internet companies have also promoted the popularity of smart TVs through high and low-priced product strategies. According to AVC's omni-channel push total data, in April 2013, the average price of smart TV in China's color TV retail market was 5,288 yuan, and its sales penetration rate was 42.2%. By March 2015, the average price of smart TV was 4010. Yuan, the sales penetration rate was 72.1%, the average price dropped by 1,278 yuan; the penetration rate increased by nearly 30 percentage points. In addition, the development of smart TVs has led to the migration of user attention and media attention, prompting home consumers to return to television.

Secondly, the e-commerce channels are normalized and this year's online market sales will break 10 million units.

Most Internet companies choose low-cost, high-efficiency online channels for sales. Currently, not only is LeTV and Xiaomi with a strong self-owned e-commerce channel, but more and more traditional color TV companies also adopt new online first-line marketing strategies and launch new products according to the online sales rhythm. According to AVC's omni-channel push total data, the sales volume of online channels in China's color TV retail market accounted for 22.3% in the first quarter of this year. In the first quarter of 2013, the online market accounted for only 5.9%. We forecast that the total retail volume of online color TVs will reach 11.7 million units this year, and the sales volume will reach 25.6%. The online market is gradually becoming the main channel for color TV sales.

Third, reshaping the color TV business model, 2018 smart TV ecosystem output or up to 360 billion yuan.

With the improvement of smart TV video content, interactive games, TV shopping, and living services, the traditional color TV business model centered on “hardware sales” is gradually being replaced by a new business model centered on “user services”. The "production, sales, and storage" competition surrounding the traditional model will be replaced by entry competition, traffic competition, and transformation competition under the new model. Hardware + content + services have brought great imagination to the development of the television industry. At the same time, the color TV, which has the largest display screen, was revalued. According to estimates, in 2018, the living room eco-sphere encompassing smart TV terminal sales, peripherals purchase, video on demand, video games, TV shopping, living services, etc. will generate an output value of approximately RMB360 billion.


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