Why foreign brand TV has fled the Chinese market in succession

Foreign television brand, these years in the mainland to mix well? Look at the following news:

September 2009, Hitachi TV brand by Suning appliance agent, and the foundry will switch to Fujian crown Czech TPV

August 2010, Pioneer LCD TV brand to Suning appliance agent,

July 2010, Toshiba and TCL Joint venture, since the Chinese market Toshiba Color TV is made by Tcl Foundry

November 2010, the acquisition of Philips in China's television business

April 2011, SANYO TV brand by Gome agent,

December 2013, Toshiba announced the closure of the Dalian factory in China and the liquidation of Dalian Toshiba Television Co., Ltd.

......

Hitachi, Pioneer, Toshiba, Philips, Sanyo, one after another foreign brands have to use the actual action to express their "incompatible" with the Chinese market, although the incompatibility behind there are more puzzled and helpless ... What is it that makes the Chinese market hard to open up years of foreign-funded television companies, a succession of when the "Running Bride"?

First of all, the ability to grasp the domestic market is limited, this is a foreign brand of natural short board.

Unlike many Chinese TV companies rooted in deep Chinese cultivation, foreign-branded televisions, like their offices, are naturally rooted in the first-tier cities North and south: Samsung has its headquarters in Beijing, with a corresponding expansion capability for the northern region, Shanghai's Sony and Nanjing's sharp (Sharp's trading company, the sales team in Shanghai) is more dominant, it should be noted, however, that the north and south of this, in fact, are the first line and part of the second-tier cities and a very small number of strong consumption of three-tier cities, and for the broader market-the vast rural market, These foreign brands have little ability to deal with, that is to say, in the so-called huge Chinese market, the foreign television brand can carve up only a small piece of this big cake, become the literal meaning of a piece of cake.

For domestic manufacturers, the use of relatively low human costs and relatively sufficient push resources, can be opened to the village-level administrative units, and can provide comprehensive after-sales service, which makes them very easy to take the rural market, so that in product coverage to occupy the upper hand, with the help of sales, can also help them to gain a favorable position in the negotiation of procurement.

Second, the product design process is not enough to support a rapidly changing Chinese market.

For the Chinese people, television-related technology, they will never be clear: only starting from 2011, there are three-dimensional, internet, dual-channel, intelligent, 4K, boundless, do not flash, multi-screen interaction and so on and so on a lot of the term by the major TV manufacturers of the marketing staff to refine out, Constantly instilled into the minds of potential consumers, and the life cycle of a word may only be half a year-that is, after six months, product design and marketing staff have to continue to rack their brains to find the next one looks more "bright" marketing point.

This terrible rhythm is fatal to foreign companies: not because their products and marketers are not smart enough, but because internal processes cannot support such a decision: on the one hand, changes in the functional aspects of each product require a detailed demonstration of the logic and data to prove the accuracy of the judgment. On the other hand, for a feature, even if the argument for the Chinese market is passed, and whether the conclusion is valid globally, it will be considered as a new subject to be studied from scratch.

Not only does the function change, even the design appearance, but also need the designer to study in the global scope to make a design, and is simultaneously several designers synchronized design, will eventually in all design to choose to adapt to the global production, but for some domestic enterprises, To do more is to stare at the design of foreign capital to pursue doctrine, in the base or back, and other unimportant place to change slightly, a new design is released.

Again, brand awareness is not enough, not able to fully show their strengths

And most of the domestic TV brands are using Barker (kitchen appliances + living appliances) of the market strategy, several mainstream foreign brands of other kinds of products have already withdrawn from the Chinese market or even outright retreat, which also led to the market can not form a scale effect so as to better educate users. From the brand Synergy point of view, the best in foreign-funded television companies is Samsung, not only through the mobile phone and tablet computer marketing to promote the brand of Samsung, but also rely on culture (film and television dramas, stars, music, etc.) offensive gradually close to the life of Chinese consumers. In addition to Samsung, other brands have no chance and do not have the ability to do brand promotion, can only follow the pace of domestic manufacturers to promote the propaganda method, of course, can not get good results, but also not be able to find the right channel to promote their own advantages, as sharp, its social requirements of the quality standards, From the LCD screen point of view has required a high temperature and humidity environment of 1000 hours of trust, far more than its competitors; but unfortunately, for the quality of strict requirements, in the current environment can only be a teapot boiled dumplings-pour (road) not out.

Finally, the gradual loss of the leading edge of technology has become a major reason for foreign brands to flee the mainland.

Compared with the low market share and the weakness of marketing ability, also can let foreign television brand elated is the technical advantage: I believe everyone will remember at that time in the CRT era of Sony's Super Dragon is how to kill the quartet so that a monopoly of high-end TV market, but unfortunately this scene has been difficult to reproduce today, Whether it's Sony, Sharp or Samsung, at present, there is no advantage in technology, in the screen due to the factor of good quality, OLED cost is still high, the short time can not see the rapid price down to the current conventional market to accept the possibility, and in the mainland market is very concerned about the intelligent function, As the current global (including mainland) still do not have a very good business model, at the same time from the foreign market for intelligence is not an essential function, so in the "smart" aspect, the foreign brand's technical ability even inferior to some domestic brands.

For foreign television companies, gradually away from the Chinese market is not necessarily its business in China, there is a crisis, in a sense, but also for human resources input and income balance of the results, so some manufacturers adopt the way of brand rental, by the Chinese local partners on behalf of the design, production and other operating work, Not only reduces operating costs but also avoids business risks, but such actions bring more homogeneity to the market, and the observation that foreign firms still on the mainland, such as sharp, have also noted the advantages of product localization, if such localized measures can prove to be successful, to a certain extent, will also strengthen the confidence of foreign brands operating in China.