Internet TV has strong momentum how traditional manufacturers can fight

The gameplay of the past has been unable to adapt to the current market trend. Traditional TV manufacturers are suffering. In the context of the Internet age, people hope that the ingestion of information will be more efficient, direct and fast. The time before the family was sitting around the TV and waiting for the start of the program is over. Although the recent rise in the price of LCD panels has caused many Internet TV manufacturers to continue their turmoil, this does not mean that the marketing model of Internet TV will disappear, and Internet + TV is the trend.

For a long time, the traditional domestic TV manufacturers and foreign joint venture brands have always occupied half of the TV market. Although the production technology has been continuously upgraded and the productivity has been steadily increasing, as the essential household electrical appliances in the home, the price of TV is not too high. The large drop in the content side is mostly just to look like. Under the impact of the Internet tide, no industry has survived, and traditional TV manufacturers are no exception.

In the past two years, many Internet companies have rushed into the TV industry, swept the TV market with high-quality content and ultra-low prices, and many traditional TV makers could not sleep at night. Internet TV probably appeared in early 2012. In just a few years, the market penetration rate has exceeded 80%. From the third quarter of this year's ZDC consumer research report, the attention of Internet TV has reached a staggering 42.4%. Take the recent double 11 as an example. Many Internet TV companies reportedly followed one after another, and sales records were often broken. Has caused a strong impact on traditional TV manufacturers.

LeTV, Xiaomi, Xiao Wei, Ku Kai, PPTV, Debut, Storm, KKTV... These small fish shrimps that did not flow a few years ago now occupy half of the entire TV market. In the past, the double eleven people seem to buy clothes and buy mobile phones. Home appliances have never been the first choice, but TVs have sold exceptionally well in the past two years. Speaking of ecology, content, hardware, and price, TV seems to be a fast-moving consumer product. The 55-inch TV is pulled to a price of 2,000 yuan. The price of 65-inch TV products is as low as 4,000 or less. Do they really want to subvert the market because they are losing money and earning money?

What are the advantages of Internet TV?

Now 80 and 90 are becoming the mainstream consumer groups in the Chinese home appliance market. This consumer group is highly influenced by the Internet, with a high level of knowledge and aesthetics, and advocates the pursuit of personality and fashion. When the younger generation enters the marriageable age, television is becoming a rigid demand. In order to win a place in the fierce market competition, the Internet TV brand takes young people as its strategy and takes young people as the top priority of its brand upgrade. It has captured the pain points of younger consumers.

From the aspect of product appearance, with the rapid rise of younger generation users, consumers are no longer solely evaluating the picture quality of television. The appearance part has also become an important standard for purchasing television. As the center of family entertainment, it has a great influence on the whole family style. Internet TV is often new in appearance design, minimalist, ultra-thin, all-metal, split design, creative elements and diverse, these are more in line with the current aesthetic standards of the younger generation.

For Internet TV, content can be said to be the core competitiveness. At present, almost all Internet companies involved in the television industry are also at the end of the network video content layout. For example, LeTV has LeTV and LeTV. As the second largest shareholder of iQIYI, Xiaomi naturally can enjoy the exclusive resources of iQiyi. Cool Open respected "big content" on content resources, returning and focusing on user needs and values. Covers video, health, travel, shopping, and games to enhance content quality and personal service. PPTV has Juli Sports, while Watch is the first Internet TV brand in the background of the license plate.

Focusing on content to attract consumers to stop, for users, the Internet video content is more attractive than a pure TV video source. At the same time, you want to see what you feel is free to choose, regardless of time and other factors. Point-and-click broadcast viewing mode captures the hearts of many users. It can be said that Internet TV brands have taken advantage of the content.

Speaking of price, this should be the point that everyone is most concerned about. Price competition is the fastest and most effective way to grab market share. As Internet TV enters the market, it attracts consumers' attention with price advantage. The emergence of Internet TV companies is almost at a loss. TV prices, the current price of a TV has been astonishingly low, and even not as good as an ordinary mobile phone. The price of the TV is controlled at a cost price, which has caused certain changes in the views of other traditional manufacturers on profits. However, the low-cost strategy is not a long-term solution. Coupled with the continuous price hike of LCD panels in the near future, some Internet TV brands have begun to try to make brand transformations and began to pay attention to their healthy development.

How can traditional TV manufacturers fight?

Unlike the strong Internet TV companies, Skyworth, Hisense, TCL, Changhong, and Konka, which have occupied the top five in the domestic color TV market for a long time, have entered the low or even negative growth status of the remaining three companies. In the first half of last year, traditional home appliance companies invariably performed "changing coaching." Among the home appliance companies, the four companies of Konka, Skyworth, Changhong, and TCL have experienced changes in management, which shows the impact of the entry of Internet companies into these enterprises.

The era of relying on hardware for profit has passed, and today is an era that depends on products and content services to win. For veteran TV makers, no matter how strong they are, if they are not stagnant due to innovation, they will be discarded by consumers. Without innovation, they will surely perish. There are countless such examples. In 2008, Nokia's mobile phone market accounted for 38.6% of the global market, 2.4 times the number of the second Samsung, and 35 times the eighth Apple. However, with the advent of the smart phone era, Nokia, which clung to traditional thinking, was quickly knocked down by Samsung and Apple. Today, people only have memories.

Fortunately, several old TV manufacturers have already begun to look for change. Hisense has launched its first Internet TV brand VIDAA this year and is leading the industry in content-end and HUAQI, iQiyi, and Tencent videos. The platform reached a strategic cooperation and launched a good-looking platform as a supplement to the content. Skyworth created its Internet brand Cool Open and created a big content model with hardware and content. Konka has established the Internet brand KKTV, and TCL has chosen to cooperate with Tencent Video to adopt the "double +" strategic transformation of "product + service" and "smart + Internet". Through the joint construction of hardware and content, it has hit consumer pain points.

In spite of its advantages, the traditional TV manufacturers also rely on the influence of the brand and the inherent advantages in hardware, continuous innovation and research and development in the field of technology, and in the traditional brand online, high-end product status is not an Internet TV station. Be able to shake (Internet brands are mainly located in entry-level TV products).

From the current point of view, both Internet manufacturers and traditional vendors have realized that a big price war will push both sides to a desperate situation, and they will end up with a visit to Huangquan. Therefore, to realize the complementary advantages of hardware and content, to seek a balance and win-win situation in quality and price, to create a harmonious and win-win situation is the future development of the television industry.

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