Internet manufacturers who enter the color TV market with the intruder's attitude are collectively ushering in the first major development problem, that is, costs have risen sharply. According to the latest data, in August of this year, the prices of mainstream-size TV panels increased, with 40-inch and 43-inch gains rising by as much as 12%-15%, which means that the cost of color TVs has risen sharply. Industry experts pointed out that this will have a greater impact on LeTV, Xiaomi, and popular Internet TV brands that are known for their low prices. At the same time, they will further verify the feasibility of the new “content profitability†model advocated by Internet companies.
It is understood that the panel price increases are mainly affected by factors such as earthquakes and corporate adjustments.
In fact, as early as two months ago, the voice of the color TV to increase prices was heard in the industry. In July, Tao Jinghai, executive vice president of Suning Yunshang Black Power Co., Ltd. pointed out in an interview that the price of LCD panels has been retraced, especially in the 40-inch segment. Because the price of the panel has affected the conduction period of the price of the TV set for about two months, it is only now that companies have begun to adjust the selling price of the product.
Just recently, LeTV also took the lead in issuing an announcement saying that since September 20th, the price of the fourth-generation LeTV Super TV models has been raised by RMB 100-200, which is due to the influence of panel prices. In an interview, LeTV’s new CEO, Liang Jun, said that this round of price increases on the entire market panel is very rapid. LeTV’s pricing is different from other manufacturers and is based on cost. Therefore, LeTV’s pricing is largely Follow the panel price fluctuations. “But we will insist on the strategy of negative-pricing pricing. When the panel price goes down, our prices will also be lowered.†In this regard, industry sources pointed out that LeTV’s move on the one hand is to reduce losses, but more importantly, it is to test the market for LeTV Super. TV model recognition.
In the past few decades, there have been price hikes in color TV panels, but TV manufacturers often seldom directly increase prices. Most of them are to ensure the overall revenue of the company by reducing production capacity, controlling losses, replacing new models with disguised price increases, and reducing allocations. These strategies can improve business operations in the previous competitive environment, but now they are not desirable under the impact of the Internet model.
Yu Chen, an analyst of Yuqi Consulting, pointed out that the joining of Internet companies has increased the competition in color TV industry. On the one hand, companies compete with each other in price and service, on the other hand, the popularity of e-commerce has broken the regional restrictions and information asymmetry of TVs. Enterprises must develop in all directions. In the face of large price increases in the face of the panel, a slight adjustment in product prices to ensure product quality and service, in fact, is a good way.
Talking about the rise in panel prices, the industry generally believes that it will impact the existing pattern of the entire television industry, especially the Internet brand camp. Li Chen said that Internet TV camps can rise rapidly. In addition to providing smart applications and video-on-demand services, they are closely related to the low price positioning of products. Behind the support of Internet companies to sell at a low price is the market conditions in the television panel industry over the past few years with excess capacity and panel oversupply. Under this background, panel makers welcome the entry of new brands. However, once the panel is in short supply, the entire situation may be reversed.
Industry watcher Hong Shibin also believes that the pure OEM model is destined to the lack of right of the Internet TV camp in the upper reaches of the industry chain. When the panel supply falls short of demand, they will become more passive, either with limited production capacity or a substantial increase in costs. In this case, unless the loss of hardware can be filled through content operations, it will be difficult for Internet TV makers who have been at a loss. The company is either acquired or withdrawn, or it has alliances with traditional TV manufacturers, such as LeTV and TCL, and the popularization of Haier's industry.
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