Who is leading the TV Revolution in the new consumption view?

For the traditional TV industry, the days in recent years have not been too good. Due to the impact of super TV, smart TV and other products, traditional TV has become somewhat "old-fashioned", which is not surprising, in the new consumption view, the entire user demand will change. products conforming to this trend will naturally stand out. products that do not conform to this trend will be ruthlessly eliminated.
Frankly speaking, nowadays, traditional TVs watch Smart TVs, just like black and white TVs watch color TVs, and there is a kind of "look up" mentality. In this regard, some traditional appliance manufacturers are also actively seeking for transformation and constantly rely on Intelligence. However, some Appliance Retailers are reluctant to give up the traditional model. Taking Suning as an example, in August 18, Suning will hold its fifth anniversary TV crazy profit-making program. The seemingly powerful low-price sales promotion reflects the ills of the traditional TV industry.
To some extent, Suning's so-called most popular color TV month is still a traditional sales promotion model. The purpose of price reduction is to improve the product's cost effectiveness and gain greater competitiveness. However, with the new concept of consumption, users have more ways to horizontally compare the product's cost effectiveness, rather than focusing on how much the price of a product is lower than the previous one, because the previous price has a large bubble, it has no reference significance. Therefore, this promotion model is difficult to attract users.
As we all know, the core of traditional TV is hardware, and manufacturers only have one business model, namely, making money through hardware. To get enough profits, they have to increase product pricing. In other words, traditional TVs actually deviate from the price/performance ratio. In this case, the promotions made by Suning are only promotions made on the basis of high premium and high marketing expenses. They are discounts offered on the basis of high prices, but even if the prices have been reduced, it is still significantly higher than its hardware cost.
Letv has its own views on this. letv's philosophy is "serving and content-oriented, supplemented by hardware and channels ". The reason why Leeco's price can be very low is that Leeco makes money not through hardware and channels, but through services and content. Of course, in this case, Leeco can naturally establish a strong price advantage and win the favor of consumers with outstanding cost effectiveness.
For example, in January 15 of this year, letv TV once again launched 8999 TVs at a price as low as 70 inch yuan with the advantage of vertical integration, and reduced 60 inch of its products to 4999 yuan, this strategy undoubtedly makes letv TV a "Price killer" in the TV industry again ". Why does letv do this? Does letv deliberately set a lower price threshold to rival traditional TV manufacturers?
As we all know, mobile Internet is providing us with more possibilities. Compared with function machines and smart phones, we find that software and services are much more important than hardware, this idea also applies to the TV industry. Compared with traditional TVs and Smart TVs, we find that the content and services on Smart TVs are truly innovative and revolutionary to users. In this case, consumers' consumption concepts will inevitably undergo subtle changes, as shown in the following aspects.
First, consumers have a clearer understanding of the brand added value of TV products. For example, the birth of letv super TV is telling consumers that TV products do not have a high technical level in terms of hardware, therefore, the business model that makes money by sticking to a brand is gone forever, because TV products do not have much brand value-added.
Second, consumers' demands for TV products are constantly changing. Before Smart TVs and super TVs appear, TV products can only provide basic watching experiences, just like the previous function machines could only provide the call and text message functions. After the advent of Smart TVs and super TVs, consumers found that in addition to the basic viewing functions, we were able to experience more and more functions, such as playing games and watching online videos, and so on. This disruption has a huge impact on users' Consumption Ideas.
Third, consumers will have a deeper understanding and understanding of traditional channels. Why is super TV so cheap? It cut down the channel cost, marketing cost and unnecessary brand premium. The whole process goes directly to the user and achieves cost compression and control. This is not what traditional TV manufacturers do. Because they have paid too much cost in terms of channel and marketing, they can only cover this cost with higher prices, this is precisely the heart of the traditional TV industry.
Certainly, in the new consumer view, the dominant TV Revolution will no longer be a traditional TV manufacturer, nor a channel provider like Suning, but letv, which can provide excellent TV products, it can also provide new power for a whole ecosystem. (Text/Wang yijian QQ: 543415188)