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by Seth Tisue

Article by jekky

2007 first half, China’s household electrical appliance? Consumer electronics industry as a whole is relatively smooth, flat-panel TVs, air-conditioning industry remains a bright spot. Flat-panel TVs maintained strong growth momentum, particularly in retail sales of LCD TVs accounted for nearly 70% of the proportion of color TV sets, while plasma TV seems to be out of the relatively depressed state, but the market trend is also to be seen; air swept away the haze in previous years, the domestic market is gradually Zouwang; washing machine, refrigerator market, the two industries is relatively stable, but high-end products are gradually becoming mainstream. Overall, prices have no longer affect our home appliances, consumer electronics industry development constraint, but the price remains the principal means of competition, but more than a rational enterprise.

LCD TV: sustained growth January to May this year, CRT TVs, plasma TVs and rear projection TVs in terms of volume of retail sales or retail sales areas, showed negative growth. In sharp contrast, the LCD TV is still going on since 2004 the rapid growth trend: January to May this year, China’s LCD TV market, accounting for all the TVs in retail ratio 33.76%, reaching 2.034 million units, an increase of 149.90 percent; the total retail sales ratio of 69.74 percent color TV, has reached 16,691,815,000 yuan, up 94.48 percent.

Other three types of color TVs negative growth, while growth momentum is still rapid LCD TV mainly due to the collective firms, power and strategy in the flat-panel TV to the LCD TV tilt. At the same time, LCD TV products across the board layout, to meet consumer demand for different sizes, up, squeeze, plasma televisions and rear projection television market space, down to snatch CRT TV inherent territory, so that plasma TV, projection TV and CRT TV in market share has been challenged.

LCD TV brand in the war, the domestic brands in marketing advantages no longer exist, foreign brands began to rise suddenly. January to May this year, foreign brands share of retail sales reached 38.97 percent, while retail sales share of more than domestic brands, reaching 50.05%. Domestic brand market share in LCD TV is gradually falling, while the share of foreign brands in the market for further growth to three factors: foreign brand price adjustment, the LCD TV market structure to the large size of the transfer and foreign brand strategy for the implementation of the concentration of superior resources.

The mainstream LCD TV sizes than in 2006 could be more diversified, the mainstream size in 2006 was 32 inches and 37 inches, to May 2007, due to sudden emergence of 40-inch and 42-inch mainstream size expanded to 32 inch, 37 inch and 40-inch, 42-inch. In terms of price, 37 inch and 47-inch a critical point, 37-inch space below the price reduction is very limited, in dozens of yuan to float between a few hundred dollars, 37-inch to 47 inch drop down in the thousands, while the 47-inch LCD TV over the largest price cut, a decrease of nearly 10,000 yuan.

Plasma TVs: suspected of monopolistic market
2007 the first half of the plasma TV market to continue in the doldrums, and this downturn further deepening trend. Ministry of Information Industry, the PRC, and Sino statistics show that the overall plasma TV sales fell more than 3 percent year on year, while sales of plasma TVs accounted for the proportion of all TV sales fall below 2%, marking the lowest point in recent years. In addition, the brand through a high concentration of problems in the past six months have not been resolved, Panasonic, Hitachi, Changhong, Hisense, Samsung and LG that six companies each Area in the country’s market share up to 90% of sales, the basic monopoly this market.

Although the overall plasma TV sales are down, but the mainstream size plasma TV prices relatively stable in the first half, 42-inch plasma TV prices remain at around 10,000 yuan. But another major dimension 50-inch plasma TV price drop has reached a million reasons, plasma makers this and collectively toward large-screen 50-inch market development strategy are inseparable.

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