According to data released by Aowei Cloud, in January this year, TV sales in the offline market were 2.764 billion yuan, a year-on-year decrease of 38.06%. During the same period, the overall domestic TV sales fell by 27.9% year-on-year. TV sales in the market are growing, and it is not good for traditional TV companies to maintain a strong online market.
The overall development of China’s TV market is not conducive to traditional TV companies
Data in 2019 showed that the overall sales of China’s TV market was 47.72 million units, down 2.0% year-on-year; TV sales were 134 billion yuan, down 11.2% year-on-year. TV sales fell more sharply than sales, showing that the average domestic TV sales price continued to decline.
In recent years, due to the continuous decline in the price of LCD panels, the average price of the overall TV has also declined, which is the general trend of the market. Another reason for accelerating the decline in the average price of TV is the rise of Xiaomi TV. Xiaomi TV has continued its cost-effective strategy in the mobile phone business, providing higher-quality TV products at lower prices, bringing huge benefits to domestic TV companies. pressure.
Data shows that in 2019, Xiaomi TV’s shipments in the Chinese market exceeded 10 million, ranking first in China’s TV market share. Xiaomi TV was established in 2012, but its rise came after the fall of LeTV in 2016. It surpassed traditional TV companies in less than three years, which shows how fierce its development momentum is.
Xiaomi TV mainly relies on online market sales, while traditional TV companies mainly rely on offline market sales. However, Xiaomi has quickly surpassed traditional TV companies because of this, which undoubtedly highlights the increasing influence of the online market on China’s TV market. Previously Some data show that the proportion of TVs sold online is approaching 50%, and Xiaomi, which has the advantage of Internet marketing, can be described as a duck to water.
Taking advantage of the advantages of the online market, Xiaomi’s rapid growth in shipments undoubtedly poses a huge threat to traditional TV companies. For this reason, traditional TV companies have also tried to make changes. TV companies such as TCL and Skyworth have launched online TV brands Thunderbird, Cool open, but apparently they didn’t stop the Mi TV from moving forward.
The further shrinking of the offline market is not good for traditional TV companies
January was supposed to usher in the traditional peak sales season of the Spring Festival holiday. Many TV companies have been preparing for this peak season, hoping to boost sales, stabilize their positions and even make breakthroughs. However, the arrival of the new pneumonia epidemic disrupted the pace of TV companies. .
In late January, due to the outbreak of the new pneumonia epidemic, offline stores, shopping malls, etc. were closed one after another, which caused traditional TV companies that mainly rely on offline channels to suffer heavy losses. From the data given by Aowei Cloud, we can see the offline market TV sales The amount has dropped by nearly 40% year-on-year, and it can be seen how much they have been hit.
In contrast, e-commerce channels have maintained a relatively normal operation during the epidemic, and the shipments of TVs in the online market have even increased. Naturally, the shipments of Xiaomi TVs, which have an advantage in the online market, are likely to be achieved. With the further growth of shipments, Xiaomi’s leading edge in the domestic TV market is expected to further increase.
It is not known how long the epidemic will last, but in February, due to the impact of the epidemic, most offline channels were still suspended. It is estimated that the blow to traditional TV companies will be even greater in February, and from the current situation, at least the first half of this year will be affected. Will be affected, the market share of traditional TV companies may further decline.
With the continuous growth of Xiaomi TV shipments, its momentum in the domestic market can be said to be booming, which helps it to further promote the growth of shipments. It may usher in another substantial growth this year. Faced with this How should traditional TV companies deal with the situation?