Tuesday, November 18, 2008

China-made LCD prices further, "diving" to continue to market "A Sigh"

LCD panel prices to stimulate

In this round of price tide, a lot of bold domestic LCD TV prices down 30%, which analysts have pointed out that the main reason stems from the cost of LCD TV to occupy nearly 60% of the LCD panel prices continuing. From the beginning of the third quarter of this year, a variety of specifications of the LCD panel prices down month by month, especially in mid-October, the LCD panel prices began a further decline. According to research firm Displaysearch announced a new LCD panel prices in early November, from 32 inch to 46-inch LCD panels dropped again, with 32-inch LCD panel prices have dropped to 220 U.S. dollars, compared to the year July fell 21.4 percent, 42-inch LCD panel price is 415 U.S. dollars, compared to July's decline is 16.1 percent.

Specific to the LCD panel manufacturers, due to the continued deterioration of the situation in the global economy, Taiwan's major LCD panel manufacturers in October showed a decline in revenue. Taiwan LCD panel line leader AU Optronics (AUO) recently released the latest data on revenue, the company combined revenues in October amounted to NT 27,260,000,000, or about 831,000,000 U.S. dollars, in September compared with the 20.6 percent The decline in year-on-year decline in the rate is as high as 48.7 percent. In addition, Chi Mei, Chunghwa Picture Tubes merger of the amount of revenue also varying degrees of decline compared to last year, nearly half of the shrinking, Chi Mei combined revenues in October amounted to 20.8 billion Taiwan dollars, or about 634,000,000 U.S. dollars, compared to Over the same period last year, down 45.4 percent, CPT combined revenues in October amounted to NT 7.5 billion, or about 228,000,000 U.S. dollars, down 53.8 percent year-on-year.

Displaysearch According to the analysis of the impact of global economic weakness, terminal manufacturers will be more cautious order, for LCD panel manufacturers have to drive through to consumer prices, and this will drive LCD prices further down.

Stock price pressures down

There is no doubt that LCD TV manufacturers made a collective price, in addition to the upper reaches of LCD panels due to lower cost factors, the recent worldwide financial crisis, has made overseas demand for LCD products in general to reduce the domestic LCD TV manufacturers are faced with most of the exports and Stock of the double pressure of the test.

"In the current global economic pressure on the environment, the disruption of domestic exports and domestic sales, such as poor as the world's color TV industry's problems, which also brought business to the cash flow and inventory of dual-pressure test." Li said, Price end of the year, not only can ease the provider's own inventory pressure, but also on domestic demand to promote the domestic color TV has a positive role in promoting.

Liu appliance industry observers step dust in an interview with reporters that the new round of price war expected, especially at this time near the end of the year, many companies are facing cash flow pressure. However, after the Golden Week 11, including LCD TVs, including a variety of products have been weakness, LCD price cuts inevitable.

Chinese e-commerce Lu Renbo, vice president of the association also suggested that the winter color TV enterprises are doomed to "work overtime" to the enterprise, to lay down their burden, to ensure that cash flow, improve the core technology, differentiated competition to choose the Blue Ocean strategy Bring to the consumer price more transfer business is to ensure that the prerequisite for the winter.

Ahead of time to seize market opportunities

According to recently released by the Chinese in the third quarter consumer flat-panel television demand for the city state of research reports indicate that the market in big cities, to Sharp, Samsung, Sony, Toshiba, and other mainstream brands share of foreign investment is still dominated more than 60%, but in three Four cities in China-made brands of the market is relatively obvious advantages, Hisense, TCL, Changhong, and other mainstream domestic brands accounted for more than 80% market share. The report also showed that the share of foreign investment growth due to the use of pricing strategies, especially for small and medium-size mainstream flat-panel TV prices down so that the foreign brand flat-panel TV surge in consumer demand.

The price for the offensive, said Li Bin, mainly in order to seize market opportunities. Orville advice from (AVC) released data show that in the first three quarters of this year, domestic sales of color TV showed a slight growth in retail volume reached 27,040,000 units, up 3.9 percent.

As the price of the offensive started early in the third quarter of the Olympic TV on the battlefield, regardless of the domestic color TV brands from the market share or the actual sales and profits an average water and leap in the development of large, in order to TCL, Skyworth, Hisense, Konka, and other brands represented by the domestic color TV brands, sales of flat-panel television showed more than 100% growth. This is also a color TV sets since 2006, foreign investment enterprises to launch large-scale price war forced the domestic color TV market, the domestic color TV Legion first collective victory.

TCL Multimedia Han Qing, general manager of China Business Center, told reporters that in addition to transfer pricing, color TV manufacturers must take strict precautions against further into the "vicious circle of price war," while the nature of color TV products to enhance the domestic LCD TV market more competitive. "In the Chinese LCD TV market to overcome the technological upgrading of the entire high-definition post-bottleneck, TCL launched X9, has changed the traditional definition TV to make it from the traditional passive acceptance of the extension of the watch features an interactive home entertainment to the carrier."


The more afraid to buy the more down

After less than two months, China-made color TV showed once again the price butcher's knife in the face at every turn 30% of the price increase, I believe the brand has a chilling effect on foreign investment. National Day period, due to pricing strategies, flat-panel had made more than 4 percent of the market share, this, copy the Golden Week price seems to be more offensive mode for granted.

But in the global financial crisis over, the general tightening of the consumer in the store, this is definitely not a good thing. To this end, expand the sales channels for the occasion no doubt will become an act, it is learned that the Suning Appliance to carry out activities in the countryside, out unilateral 50,000,000 yuan in cash, for consumers in rural areas across the country, according to the 13% discount given to farmers Rangli , Which also ranked preferential LCD TV products.

However, the only cities to the countryside to alleviate weakness in sales of limited effectiveness in the face of the traditional off-season sales of electrical appliances, factories, stores have to take the initiative to provoke a price war to win the attention of consumers, can only be described as Aibing play, there is no courage Work. The more price cuts, the more people dare not buy or hunters Herd.

Burglary that, of course, price promotions can be left to the consumer impulse purchase, but the impulse of action, more or rely on the "quality", China-made color TV manufacturers need to go a long way to go, once the price war into a vicious circle, Will be very difficult to extricate themselves.

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