Japanese and South Korean TV companies adjusting industrial structure behind losses

In 2012, Japanese and Korean companies showed signs of significant decline in the Chinese market. In this global recession, the huge market scale has played a leading role in the global market. In fact, the global display industry is brewing in the past two years from the liquid crystal display technology upgrade to a new generation of display technology upgrade, especially since the second half of last year TV sets and panel giants, including Japan, South Korea, and Taiwan, face collective and sustained losses. The intention of the giants to weaken the already “cheap” LCD TV industry chain is becoming increasingly apparent.

Japan and South Korea color TV giant body loss, why not?

It is understood that Japanese companies, Sharp's fiscal year 2011 (as of March 2012) shows that from the estimated first half profit of 80 million US dollars to the actual annual loss of 3.8 billion US dollars, mainly accounting for 60% of its sales revenue of LCD TVs and The panel business deteriorated sharply in the middle of last year and has not yet improved. According to Sharp insiders, in January 2012, Sharp completed only 20% of the expected sales in the Chinese market, a decrease of 60% from the same period in the previous year; Panasonic and Sony are expected to lose a total of 10.2 billion US dollars in 2011, dragged down by the color TV business. And 2.8 billion US dollars; while Hitachi, Toshiba is due to the size of color TV business is not too lucky to escape the loss, but profits have fallen year-on-year. Korean companies, as of December 31, 2011, LG Electronics 2011 net loss of 247 million US dollars, LGD because of the "greatest loss in history" and had to layoffs, caused a great uproar in the industry; Samsung Electronics despite strong 2011 performance However, the biggest contribution to profits is its smart phone products, which suffered losses for the entire year. What are the reasons for the loss? According to Lu Jiebo, deputy secretary-general of the China Electronic Chamber of Commerce and a well-known household electrical appliance expert, when consumer demand changes rapidly, these enterprises cannot accurately grasp consumer demand and thus cannot achieve the connection between supply and demand, resulting in the above-mentioned loss. The sales strategy of foreign-funded enterprises in China is worth considering.

Domestic color TV sales thrive, opportunities increase Facing the weakness of foreign brands, domestic brands are clearly "scenery" here is good, in 2011, due to changes in the economic situation at home and abroad, the domestic market continued to increase the number of products, several domestic color TV giants The sales scale exceeded 10 million units, and the domestic color TV market is heating up. Some domestic color TV companies have achieved outstanding performance. Among them, TCL ranks seventh in global color TV sales with over 10 million units, behind Samsung, LG, Sony, Toshiba, Panasonic, and Sharp. Lu Jiebo, deputy secretary-general of the China Electronic Chamber of Commerce and a well-known household electrical appliance expert, said that the leading part of domestic brands’ market share in China has benefited from policies such as home appliances going to the countryside and trade-in replacements. In the TV sales of home appliances to the countryside, the six domestic brands accounted for 90% of the market share. The reason for the rebound in the sales of domestic color TV brand market is mainly due to the continuous decline in panel prices, leaving room for price operation for domestic TV companies. However, at the same time, domestic companies should also realize that in the face of the goals of the “one hundred billion” plan put forward by the companies within the circle, it is understandable that domestic companies will grow and grow in size. However, at present, some companies are inflexible and should not be too fast.

Under the circumstances of diversification, the technology is the most important in the LCD panel industry. China's corporate development has been lagging behind. China's LCD panel industry has just entered the stage of development, while leading companies such as Japan and South Korea have begun to abandon the LCD panel business and switch to China's panel. The OLED panel business that has not yet been involved in the enterprise has gradually shifted to OLED LCD panel production, and the market will gradually mature. However, the time for Chinese companies with mature LCD panels to continue to follow up is not much. Now China's LCD panel companies are facing a severe test. With the formation of the OLED panel market, there is not much time left for Chinese LCD panel companies to continue to develop. Once the future OLED panel market matures, and with the decline in product prices, once the LCD panel is reached 1.5 times the price, the panel market will face product replacement, but the current market will still be dominated by LCD LCD panels, so domestic companies still need to vigorously develop LCD business, but at the same time we must start to actively layout OLED research and development so that the market will not fall in the future After people.