The growth of flat panel TV consumption further slows down, and brand competition will intensify. 3D functions boost the growth of plasma TVs, while the demand for smart TVs exceeds forty percent.
[China Digital Audio-Visual News] In 2011, ultra-thin LED backlit LCD TVs were already visible in almost every home appliance store. From the initial entry of LED TVs into the market to their widespread adoption today, it has taken less than three years. According to data from the Consumer Electronics Product Survey Office of the China Electronics Chamber of Commerce's "Research Report on the Status of Urban Consumer Demand for Flat Panel TVs in China from January-June 2011": By the end of 2011, LED TV sales are expected to reach 18 million units. The report also pointed out that due to the rapid decline in 3D TV prices, this year’s 3D TV consumption has exceeded expectations, with annual sales likely to break through 6 million units. Additionally, smart TVs, which major color TV brands began promoting heavily in March this year, are also expected to reach a consumer demand of 4 million units this year. Experts present unanimously believe that 3D smart TVs will lead the trend of flat panel TV consumption in 2011.
A mature market often implies a high degree of brand concentration. Since the launch of the flat panel TV consumption market in 2004, at its peak, nearly 30 brands participated in the competition. In less than ten years, brands have undergone multiple rounds of consolidation, with New Science (Xinke), Shanghai广电 (SVA), Hitachi, and Philips all having successively exited the flat panel color TV stage. Currently, domestic flat panel TV market competition is mainly concentrated among ten brands, with foreign brands accounting for 35% of sales volume, and domestic brands holding a 65% share. Looking at the market and product segmentation, the adoption rate of LED technology in Chinese brand LCD TVs was faster in 2011, increasing from 17% last year to 62% this year, with Hisense, Skyworth, TCL, Changhong, and Konka occupying a significant share. Meanwhile, for foreign brands, despite Samsung and LG leading the way in LED TVs, their market share only increased from 22% to 42% within one year. Fiber-to-the-home and HD have become new trends in the development of video conferencing.
Lu Renbo, Deputy Secretary-General of the China Electronics Chamber of Commerce (via Weibo), stated that after several consecutive years of rapid growth, the domestic flat panel TV consumption market has now entered a mature phase. At this stage, the growth in flat panel TV sales in first and second-tier cities has basically stagnated, relying on the growth in demand from third and fourth-tier cities to maintain a low-speed steady growth in overall flat panel TV consumption. Data from the "Report" shows that from January to June 2011, the demand for flat panel TVs in the Chinese market reached 15 million units, with the full-year demand expected to reach 38 million units.