After seven months of persistent market downturn, color TV retail sales finally showed signs of recovery in August. According to data monitored by Ovid Cloud, during the "8·18" promotional period, domestic color TV sales surged by 66% year-on-year, while revenue jumped by 102%. This unexpected rebound brought a glimmer of hope to TV manufacturers, many of whom had seen their net profits hit rock bottom.
Industry experts believe that as TV panel prices stabilize and adjust, the profitability of the color TV sector is expected to improve. However, with the overall market still weak this year and a high base from the same period last year, the upcoming "11" Golden Week promotions are likely to yield some positive results, though year-on-year sales growth may remain challenging.
The decline in domestic color TV performance has been driven by rising panel prices, the fading of internet-driven growth, and an early draw on consumer demand. In the first half of the year, China’s color TV retail sales fell by 7.3% compared to the previous year, and the industry's net profit margin dropped below 1%. Sales continued to fall in July, with TV companies remaining cautious about purchasing panels.
“From April last year to June this year, panel prices rose by an average of about 40%, but TV prices increased by less than 20%,†said Cui Jilong, Deputy Director of the Display Industry Chain Research Division at Ovid Cloud. “This has benefited panel manufacturers but put pressure on TV companies.†The drop in TV shipments and panel purchases led to an oversupply of panels, and after June, panel prices began to decline from their peak.
Looking ahead, Cui noted that new production capacity will gradually come online, and as demand from TV manufacturers adjusts, panel supply will remain ample, with prices continuing to trend downward.
According to Ovid Cloud’s forecast, large-size panel prices are expected to drop significantly in October. While falling panel prices have eased cost pressures for companies, a price war in the color TV market is unlikely to return soon. Instead, innovative products like OLED TVs and quantum dot TVs are expected to take center stage in the upcoming November promotions.
Cui added that the focus is shifting toward product innovation and differentiation, which could help drive consumer interest and support long-term industry recovery.
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