"Policy vacuum" superimposed on internet to disrupt the performance of TV industry decline

2014, become the inflection point of China's color TV industry: According to the statistics of Oviyun net, the domestic color TV market total fell for the first time in 30 years. In 2015, a joint report by the China Electronic Video Industry Association and the Connaught Market research company even predicted that color TV would be a loss to the whole industry.

Market capacity is reduced, sales and revenue decline, the industry meager profit. Companies to change executives, change organizational structure and net war to burn money, but also to take into account the pressure of performance assessment.

Liu Yan, vice president of Skyworth, said in the second quarter of last year's China Electronics Industry Economic Operation Conference that there is no growth or negative development, which may be the new normal of the future color TV market.

How is the color TV industry in winter? 21st Century Economic Report reporter interview results are home appliances intelligent is the direction. The home Internet player is not only the traditional home appliance enterprise, finally realizes "the Software + hardware + the Internet".

Traditional color TV is facing new opponents, new war.

Core Summary

The killing of Internet enterprises brings the revelation to the traditional color TV enterprises. Yang Dongwen said: "The most important revelation is the business model, the Internet companies let color TV companies more aware of the color TV screen behind the value." ”

Newspaper reporter Ye Bihua guangzhou report

Under the triple pressure of energy-saving subsidy policy withdrawal, real estate market regulation and Internet enterprise grabbing food, the 2014 China color TV industry faces severe challenge. January 20, Beijing-dimensional Cloud network Data Technology Co., Ltd. (AVC) in CRC meeting disclosed that last year, the average net profit margin of the domestic color TV industry has fallen to about 1.5%, is truly a major household appliances category in the most meager profit industry. Oviyun NET latest data show that 2014 China's color TV market total of 44.61 million units, down 6.6% year-on-year, sales 146.2 billion yuan, down 14.5% year-on-year. As of September 30, 2014, a number of color TV companies have seen a sharp decline in performance. TCL Multimedia (01070.HK) achieved revenue of HK $23.601 billion in the first three quarter of last year, reducing by 15.4%, Skyworth Digital (00751. HK) Overall revenue was reduced by 7.7% to HK $18.478 billion in the second half of the fiscal year (April 2014 to September). Skyworth Group President Yang Dongwen that the color TV enterprises to adapt to the "new normal". In his view, the slowdown in China's economic growth, so that the weak confidence in personal consumption, coupled with the government's policy is still in the wait-and-see stage, the traditional color TV industry face a severe test.

Color TV "New Normal"

Early last year, the Oviyun Network released a report predicting that the color TV industry will usher in a negative growth year.

The data show that the forecast is quite accurate. Oviyun Network data show 2014 year color TV sales 45.09 million units, down 5.6% year-on-year. The market makes the color TV enterprises feel the chill of bone invading. TCL Multimedia Three quarterly bulletin shows that 2014 years ago, the three quarter of the company to achieve operating income of HK $23.601 billion, the year-on-year reduction of 15.4%. The data show that in the first 9 months of last year, TCL Multimedia sold 11.9 million LCD TV sets, down 1.5% year-on-year. But if the overseas market to eliminate 6.12 million sales, TCL Multimedia in the first three quarters in the country sold only 5.78 million LCD TVs, the year-on-year decline of 17.7%.

Another big domestic color TV giant Skyworth digital 2014/15, the semi-annual report showed that, as at September 30, 2014, within 6 months, the group turnover amounted to HK $18.478 billion, a 7.7% reduction from the previous year, net profit of HK $824 million, and a year-on-year increase of 14.6%. In the case of the average price decline, Skyworth digital TV sales in spite of six months to reach 5.04 million units, compared with the same period last year, the number increased 4%, but the turnover or negative growth.

Sichuan Changhong (600839. SH 2014 Quarterly display, the first three quarters to achieve operating income of 41.3 billion yuan, down 1.82%, to achieve the ownership of the listed company's shareholders net profit of 314 million yuan, the same period last year for profit of 310 million yuan. Konka (Shenzhen Konka a,000016.sz) 2014 1-September to achieve revenue of 13.468 billion yuan, a decrease of 7.42%; The net profit attributable to the shareholders of the listed company is only 47.579 million yuan. Hisense Electric Appliances (600060. SH) The first three quarter to achieve income of 21.09 billion yuan, an increase of 2%, the realization of the parent company net profit of 920 million yuan, the year-on-year decline of 18%.

At the end of last year, the companies are not beautiful performance let the industry constantly sigh: "Color TV industry has entered a micro-growth era." "The pan Skyworth more than 10 years of Skyworth Group President Yang Dongwen to the reporter regrets:" We are more and more profound understanding of the ' new normal '. ”

A meager profit

In the interpretation of the performance decline of color TV companies, none of them mentions the influence of policy.

May 31, 2013, energy-saving appliances subsidy promotion policy ("Energy-saving subsidy" policy) officially ended, announcing that the color TV industry lasted five years of policy stimulus all withdrew, the first time the color TV industry faced "policy vacuum period" showed a lack of growth. The weakness of market demand continued and intensified in 2014.

In fact, the industry's criticism of the stimulus policy, one reason is the excessive stimulation of market demand overdraft. Industry forecasts include home appliances to the countryside, the old for new, energy-saving subsidies and other stimulus policies to make the domestic color TV market demand is overdrawn up to 12 million, the impact will continue for the next 3 years.

Oviyun Network Black Power Division analyst Wang is to reporters analysis: "Color TV industry decline in the main reasons there are three: one is the withdrawal of the policy; second, the real estate industry is unable to support the city, commercial housing and residential turnover fell sharply year-on-year, reduce the new demand of 1.5 million Taiwan Third, the development of intelligent terminals replaces part of the demand for the replacement of color TV. ”

In addition, the new entrants from the Internet industry are also eating cakes originally belonging to the five domestic color TV brands. The Secretary-General of the Chinese Federation of mobile phones has said that the 2014 video super TV sales exceeded 1.5 million, ahead of the goal, 2015 video Super TV will set 4 million sales target. This means that Le Vision will become the sixth largest color TV giant. Music and millet Enter, do not rely on hardware to make money, relying on the profit model of software earning and low-cost competition to the traditional color TV enterprises a great impact. Le See has played "subversion of the traditional color TV industry," the banner of Millet, "fan economy" for the traditional color TV companies explain what is "internet thinking." "The internet is really bad for us," Yang Dongwen said. ”

In the face of low price competition, domestic color TV enterprises almost without exception to follow up, resulting in the low margin of color TV enterprises profit margins further narrowed. In the color TV industry, Skyworth has always been to 20% of the gross profit margin, Skyworth semi-annual report although not showing the decline in gross profit margin, but Skyworth group vice president and color TV business headquarters Liu Yan Branch, Skyworth can "keep" high margin is quite difficult. But other color TV enterprise's gross profit margin is generally below 19%. Household appliances industry veteran observer Liu Haoqing said: "Color TV has become the lowest gross profit margin of the category." ”

Data show that since 2012, the overall net profit margin of domestic color TV manufacturers remained basically hovering at 3%, but Oviyun Network Black Power Division general manager Dong Min that the actual number is lower, "like Hisense Changhong they not only have color TV business, I am very difficult to get the actual data, but I personally think it is lower than 2%." ”

"On the one hand, the color TV industry cake is becoming smaller, on the other hand, eating more people, the family can eat to the mouth of the reduction." "Dong Min said.

NET Crisis

For color TV manufacturers, this long winter has just begun, according to the Oviyun network forecast, 2015, the domestic color TV market has 44.29 million market capacity, the 2014 decline 1.8%; 2016 also maintained in 44 million units, 2017 years before the resumption of 45 million units. In the winter, almost all the color TV companies are pinning their hopes on the Internet transformation.

Internet enterprises to kill into the traditional color TV enterprises have brought enlightenment. Yang Dongwen said: "The most important revelation is the business model, the Internet companies let color TV companies more aware of the color TV screen behind the value." "TCL Chairman Li's reflection is:" The biggest problem of traditional color TV companies is no users, the TV sold to the consumer and cut off contact. "The goal of the color TV Enterprises ' transformation is to find and operate users like internet companies.

To this end, TCL launched the "Smart + Internet" transformation, the establishment of "products + services" of the new business model; Skyworth idea is "double brand", "double platform", dual brand refers to the line of cool open and offline Skyworth dual brand operation, dual platform refers to the online electric business, official website and other network platforms and offline channels, store platform to go hand Konka set up the first intelligent TV operating platform in the industry, Changhong launched smart home appliances strategy.

But the process is not going well and is not going to produce immediate results. The most loudly shouted TCL to the organizational structure of the deep changes, just took office a year of TCL Multimedia CEO Shanyi was "degraded in disguise": from the original management of domestic and overseas markets into competent overseas markets. In the number of active users of the smart TV companies most eager for color television, Tcl revealed that at present Tcl has more than 1 million fans and the number of active fans is more than 10,000. The consensus in the industry is that a level of less than 5 million users is not commercially available for subsequent commercialization.

Transformation of the same time, enterprises can not avoid the performance pressure. "The transition cannot be at the expense of loss," said Li, chairman of TCL Group. "and Yang Dongwen's statement is more image:" Color TV companies turn big bends can not turn sharp. ”

"There is a wind behind the millet, Lok see behind the content, they can play a very low price." And the traditional manufacturers must maintain a certain profit, there is no KPI evaluation of the content and wind to compensate, so they can not use the millet and Le view of the way. "Oviyun Network Black Power Division general manager Dong Min said.

Last April, Skyworth confirmed that because the performance did not meet the target, Liu Yaoping, vice president of color TV division had to "class". Last November, TCL executives made a big shift: CEO Shanyi, who took office in 2013, returned to the post of general manager of his overseas operations Center, a successor who was just appointed chairman of the Executive Committee of TCL Multimedia strategy.

But Dong Min that the frequent turnover of executives is fatal to color TV companies, "traditional manufacturers are actually not ignorant of the business model of the content business, but they have to the operation of the requirements, performance assessment has to worry, no way to burn money like the content business, so this cross-border currently has no successful case. ”