With the rise of domestic mobile phones, the domestic power of the consumer electronics industry has gradually stabilized, and many major international manufacturers have pointed their anchors to the TV market of greater interest. Recently, it has been rumored that the major players in the mobile phone industry such as OPPO, VIVO, and Huawei are investigating the TV market and may start to get involved in the TV industry. Compared with Gree making mobile phones, the news of OV and Huawei making TVs did not make people feel particularly surprised, and even some expectations. So, why do so many bigwigs want to "plug in" in the face of the cold winter of the Internet TV industry?
What makes manufacturers flock to
Reason 1: Be jealous of the success of other brands
In the previous TV industry, only traditional TV brands, such as TCL, Hisense, and Sony, occupied half of the industry. With the development of the Internet, people's demand for smart TVs is getting higher and higher, and traditional manufacturers feel powerless in this regard.
In 2013, a brand called "LeTV" appeared in front of the public as a "disruptor". It turned from a video website company to a TV brand, rushing out of the market with super cost-effective and super high configuration. The emerging Internet TV brands once held the No. 1 position. At the peak of sales of LeTV TVs, it even reached that for every 5 TVs sold in China, one of them was a LeTV Super TV. This number is enough to make this "rising star" feel proud.
However, LeTV’s good times did not last long. Although LeTV TV has a good reputation among consumers, the shortage of capital chain once caused LeTV Group to fall into the bottom. Just as LeTV TV was losing ground, Xiaomi TV took the opportunity to counterattack, and it was also a hit. Cost-effectiveness is king, and with the brand effect of mobile phones, TV has developed explosively. Today, Xiaomi has become the number one in both sales and sales in the online TV market. Although offline data is not included, this achievement is also gratifying for Xiaomi.
Seeing that their competitors are making a lot of money in the TV market, of course the major mobile phone manufacturers can't stand still.
Reason 2: Take the ecological chain model, expand the ecological chain, and share the risk
The ecological chain is like the food chain, one link is one link, and each link influences each other. The current corporate strategy has gradually matured and the ambitions are getting bigger and bigger. Choose a position in the value chain to focus on development. Up to now, we have built our own platform and formed an ecology based on the platform to build our own ecological empire. Coupled with the implementation of "Internet +", the "ecologicalization" of the industry is imperative.
Ecologicalization is also a way to diversify the risks of an enterprise, and it is also the trend of future enterprise development. Many people have such awareness and ideas. It is the so-called "principle of risk diversification." Take Xiaomi mobile phones as an example. From making mobile phones to today's "department stores", to build an ecological chain around the core of mobile phones is to spread risks on a large scale.
The sales of Xiaomi mobile phones fell by as much as 36% in 2016, and the sales volume dropped by tens of billions. Fortunately, the ecological chain is competing, claiming to sell 15 billion, making up for the loss of the mobile phone sector, the so-called "seesaw effect."
From this point of view, OPPO, VIVO, and Huawei’s involvement in the TV industry guarantees the endurance of the mobile phone industry to a certain extent. The two complement each other to strengthen their own ecosystem and share certain risks.
Reason 3: The mobile phone industry is stable and the dividend is not enough
With the steady development of smart phones, it is difficult to achieve a huge breakthrough in the sales of mobile phones. The dividend period of domestic smart phones has become a thing of the past. At the same time, the shipment of smart phones has also begun to show a downward trend. According to data, the domestic mobile phone market shipped 36.61 million units in June this year, a year-on-year decrease of 12.4. The cumulative shipments in the first half of the year were 196 million units, a year-on-year decrease of 17.8%.
OV and Huawei, as leaders in the mobile phone market, also know that the domestic market is no longer the same year. Although they continue to expand overseas markets and increase sales, for the main domestic market, they must actively seek new business expansion and follow-up development.
As a brand with a mobile phone origin and expanding other businesses, TV is the best way out. TV can be said to occupy a large scene in home applications. With such a large economic value, OPPO, VIVO, and Huawei naturally don’t want to miss such a large one. Market opportunities.
TV market today
Internet vendors
As mentioned above, LeTV TV, as the source of the Internet TV industry, once led the sales volume, but fell to the bottom due to the shortage of capital chain. The opening of the trading board took place after 11 consecutive months of falling limit.
On the other hand, Xiaomi TV has the highest sales volume in the industry. With such beautiful data, Xiaomi has also maintained a steady growth. In the Internet TV industry, Xiaomi is well-deserved as the boss, and one of them dominates half of the Internet TV industry.
Traditional manufacturers
The traditional TV brand camps Hisense, TCL, and Sharp are accelerating their competition for the market of Internet TV brands and occupying the market with profits. After experiencing the blow of Internet manufacturers, traditional manufacturers have become more and more mature. A large number of giants have begun to deploy online and offline, and focus on creating TV content, which makes Internet TV brands unable to breathe.
Difficult to enter the market across borders
Although the industry still has opportunities for latecomers, for an emerging industry, OPPO, VIVO, and Huawei cannot replicate the success of the mobile phone industry to the TV industry. At the same time, due to the differences between the TV industry and the mobile phone industry, as a novice, they will face difficulties. Fewer problems.
On the one hand, Internet TV brands are constantly struggling in the TV industry. Xiaomi TV has always wanted to seize its position. It is already difficult for other Internet TV brands to find new profit points in this industry. It is impossible for a novice to challenge the industry giants. .
Secondly, the television industry is an extremely money-burning industry. Once there is a problem with the capital chain, it will instantly change from a "giant" to a "cross-street rat". In recent years, LeEco is the best example. LeEco’s TV sales have plummeted, largely because of the lack of capital chain leading to a crisis of trust, which eventually formed a vicious circle, and the entire company fell into a quagmire. If you want to enter the TV industry, you must have sufficient funds as support.
On the other hand, chips and content are very important in the TV industry. However, today's chips still have to rely on imports. Localization is still a big problem. In terms of content, OV and Huawei are not originally video websites, and they need to spend on copyright. With more costs, there is naturally no advantage in terms of resources.
What are the problems after the spoiler
Let's assume that if OV and Huawei enter the TV market, what changes will they bring to the market?
The price war will ease
The impact of Internet TV on traditional TV has resulted in traditional TV manufacturers having to lower prices to fight a price war, and the two sides suppress each other. Today’s Internet TV can be said to sell one and lose one, relying on content to subsidize hardware losses, and joining OV and Huawei to join the TV industry, according to the usual small fresh meat endorsement routines used in the mobile phone industry, will inevitably be to a certain extent To raise the price level of the overall TV industry, the price war in the TV industry will be eased, and prices may return to a reasonable price range.
Innovation will become the main line
The evolution of mobile phones is always going on, from Apple’s notch to lifting camera, OV’s innovation in this area plays a pivotal role. Joining OV and Huawei to the TV industry may bring more novelties in the future. TV, foldable TV? Automatically hide the border TV? In short, innovation will become a good card for these manufacturers.
to sum up
The addition of OPPO, VIVO, and Huawei is not only a complementary business, but also a dispersion of risks. From the current TV market, competition is still fierce. It is still unknown whether mobile phone brands can succeed in cross-border TV production.
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