BEIJING, Aug. 25 /Xinhua-PRNewswire/ -- CCID Consulting, China’s leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong (Hong Kong Stock Exchange: HK08235), recently released a report on China’s flat panel TV in 2008H1.
In 2008H1, the Olympics continues to be the major demand driving force in flat panel TV, amid impact of the snow storm and 5.12 Earthquake. At the eve of Olympic Games, manufacturers maximize their promotion efforts and make full use of final marketing opportunities. CCID Consulting’s data shows that the sales volume of China’s flat panel TV market in 2008H1 reaches 6.1179 million sets, up 84.9% year-on-year. The share of flat panel TV accounts for 30% of the total color TV market. Flat panel TV market continues to grow rapidly.
Figure 1: Sales Volume and Growth of China’s Flat Panel TV Market in 2008H1
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Source: CCID Consulting, July 2008
China’s LCD TV market has the following characteristics in 2008H1:
Characteristic 1: PDP TV Campaign a Huge Success
Manufacturers of PDP TV seize the Olympics opportunity to advertise the products’ sports viewing advantage. Together with the launch of 37" PDP TV, the share of PDP TVs in 2008Q2 is 11.4%.
Figure 2: Technical Type Structure Change of China’s Flat Panel TV Market in 2008H1
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Source: CCID Consulting, July 2008
Characteristic 2: Size Structure Reflects the Olympics Effect
In 2008, major flat panel TV manufacturers launch many kinds of new products with special Olympics viewing features: super size, full HD, HDMI interface and high dynamic definition. CCID Consulting’s data shows the sales volume of LCD TV with more than 40" accounts for 35.4% in 2008H1, and the share of LCD TV with 32" is 34.8%. Meanwhile, the Olympic Games also drives up demand in traffic, hotel, restaurant and entertainment sectors.
Figure 3: Size Structure of China’s LCD TV Market in 2008H1
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Source: CCID Consulting, July 2008
Characteristic 3: Chinese and Foreign Brands Share TOP10 in LCD TV Market
With the enlargement of China’s flat panel TV market size, Chinese and foreign brands expand all-round competitions in product, technology, price and service. The one high-end image of foreign brands has come down to be more economical, and as prices before more affordable their market share expands rapidly. On the other hand, Chinese brands strive to improve service quality, strengthen channel construction and improving brand publicity. Chinese and foreign brands bisect TOP10 in LCD TV market in 2008. Samsung is the champion in 2008H1, whose share is 10.3%; the second is Hisense, whose market share is 9.4%; the third is Skyworth, with a market share of 8.2%; Sony’s market share increases rapidly, with 7.9%; the fifth is KONKA, with 7.7%.
Figure 4: Brand Structure of China’s LCD TV Market in 2008H1
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Source: CCID Consulting, July 2008
Characteristic 4: The Olympics Effect
In 2008, flat panel TV manufacturers make use of Olympic marketing to attract consumers’ attention. Sponsoring Olympic Games is the best marketing strategy. According to their own strengths, major brands sponsor one or several matches to enlarge brand popularity.
Chinese domestic brands: KONKA sponsors and becomes China’s national sailing team’s strategic partner; CHANGHONG signs a contract with China Table Tennis Team. By means of China Table Tennis Team’s popularity, CHANGHONG improves its brand image. Skyworth signs the contract with national shooting team, and becomes the only sponsor of national shooting team. TCL is the official sponsor of China women’s tennis team.
Foreign brands: Samsung signs a contract with Chinese Gymnastics Association and becomes Chinese Gymnastics Team’s major sponsor. Panasonic is Olympic Games’ global strategic partner, the 30 Olympic venues’ TV rediffusion equipment sponsor.
Major brand manufacturers set eyes on Olympic Games’ great commercial effect; Olympic marketing is like a raging fire, which adds many highlights to China’s flat panel TV market.
By means of Olympic Games large environment, China’s flat panel TV market size in 2008H2 will further enlarges, CCID Consulting forecasts that China’s flat panel TV market will appear the following three trends in 2008H2:
Trend 1: The Share of LCD TVs Is Larger
After Olympic Games, China’s flat panel TV market size will continue to enlarge, the market share will reach 40%. There are two reasons:
Firstly, flat panel TV will replace CRT TV. As for technology, compared with CRT TV, flat panel display has obvious advantage in display function and display effect. With improvements in living standards, not only city market, but also country market’s demands for flat panel TV will increase.
Secondly, China vigorously supports flat panel display manufacturing, and issues relevant financing and tax policy to support China’s flat panel industry. Major color TV manufacturers’ development strategies focus on flat pane TV.
Trend 2: LCD TVs Enlarge Infiltration to 3-4 Tier Markets
With competition heating up, 3-4 tier markets will become the next battlefield. Samsung, Sony, and other foreign brands begin to strengthen channel construction and extend to 3-4 tier markets, which will be a challenge to domestic brands. KONKA, Haier, Hisense, and other domestic brands develop new channel strategy to cope with this situation.
KONKA has launched rural market activities to build thousands KONKA flat panel stores in country-level market so as to achieve brand promotion and sales growth. Hisense enhances 3-4 tier markets development and sales network reaches more than 20,000. Haier pays more attention to potential of rural market and spends a lot in rural market channel construction.
Trend 3: Share of PDP TV Will Increase
As LCD TV market being more competitive, some domestic brands turn to PDP TV market. As one of the PDP display projects of Changhong, Panda have achieved primary results. Changhong releases its PDP display in SINOCES exhibition in Qingdao, which shows China’s position in PDP upstream industry chain.
Besides, Skyworth, Hisense, KONKA, and other domestic brands increase investment in PDP TVs. PDP TV manufacturer camps are enlarged. PDP TV market scale will keep growing and PDP TV market share will increase in flat TV market due to consumers’ better knowledge to PDP products and lasting impact from Olympic Games.
About CCID Consulting
CCID Consulting Co., Ltd. (hereinafter known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: 8235.HK), is directly affiliated with China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen, Wuhan and Chengdu, with over 300 professional consultants after many years of development. The company’s business scope has covered over 200 large and medium-sized cities in China.
Based on major areas of competitiveness: industrial resources, information technology and data channels, CCID Consulting provides customers with public policy establishment, industry competitiveness upgrading, development strategy and planning, marketing strategy and research, HR management, IT programming and management. CCID Consulting’s customers range from industrial users in electronics, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks. CCID Consulting commits itself to becoming the No. 1 advisor for enterprise management, the No. 1 consultancy for government decisions and the No. 1 brand for informatization consulting.
For more information, please contact:
Cynthia Liu
Coordinating Manager
CCID Consulting Co., Ltd.
Tel: +86-10-8855-9080
Email: liuyan@ccidconsulting.com
