Recently, Hisense and LeTV set off a battle for "first-to-market" issues, which led to the discussion of Internet brands and traditional home appliance brands inside and outside the industry. Whether Internet brands have replaced traditional household appliance brands and who can lead the development of the home appliance industry in the future? What should companies do when they want to be invincible?
A battle for sales
Recently, Hisense and LeTV set off a battle for sales on the issue of “first salesâ€. At first, LeTV quoted data from Ove Cloud.com, saying that LeTV recorded sales of 710,000 units in April, with sales accounting for 19% of the month, and the industry’s total channel sales. Subsequently, Hisense quoted the monitoring data of Yikang, indicating that in April, the total retail sales volume of Hisense was 14.68%, and the share of retail sales was 15.55%. It remained the first month of 2016 and the cumulative total. Since then, LeTV has continued to follow suit, quoting Yikang’s report in April that LeTV’s total sales in 2011 were 715,000 units, which accounted for 21.83% of total sales.
In your visit to China, LeTV's competition as a fast-growing Internet brand and the largest giant in China's color TV market, Hisense, has intensified. So, what exactly should be viewed by both parties on the competition for sales?
Responsible person of LeTV responded to a question from the China Business Daily reporter about the reasons for sales growth, said that LeTV's dramatic increase in TV sales in April is an indisputable fact, which is related to its launch of the “414 Hardware Free Dayâ€. April was the traditional low season for color TV sales. However, in this month, LeTV launched the “414 Hardware Free Dayâ€, which created a sales volume of 710 thousand units during the month.
However, the data of third-party research institutes can only serve as a reference and cannot fully reflect the actual sales of each company. The person in charge of the media of Hisense Group stated that the data of the third-party organizations are all data of the selected sample stores, because these sample stores have a certain representativeness and can partially represent the market share. But also because this is sample data, no manufacturer puts his actual sales into comparison with sample data of other brands. Therefore, the actual data of the manufacturer will be less than the actual sales data of the manufacturer.
At the same time, some people in the industry stated that the channels of traditional brands and Internet brands are different, and the flow of traditional brand official websites is less than those of LeTV and Xiaomi. Therefore, the official websites of Leshi and Xiaomi can bring sales to their products. For traditional brands, the third- and fourth-tier cities are areas where they have sales advantages. There are many stores in these areas, and third-party agencies cannot count.
This LeTV and Hisense contention for "first-rate sales" can be seen as a microcosm of the game between the current Internet brands and traditional brands. Hisense, TCL, Skyworth, and Konka are currently the major TV brands in China. The competition between brands is fierce. The addition of Internet brands such as Xiaomi and LeTV clearly divided the entire market into two camps - traditional brands and internet brands. The dispute between LeTV and Hisense in sales has once again triggered discussions within and outside the industry about the current competitive landscape of the TV market. Some people even see it as a precursor to the possibility that Internet brands may surpass traditional brands. So, what exactly is the market competition?
The above-mentioned person in charge of the media of the Hisense Group said in an interview with a China Business Daily reporter that for Hisense, the Internet brand did not affect its market share, and Hisense’s market share and market share not only did not decline, but also rose. However, after the appearance of Leshi and Xiaomi brands, the overall growth of the Chinese TV market has not been seen. These companies are indeed occupying a certain market share.
At the same time, Peng Xiandong, general manager of China Blackcom Research Center, said that the current Internet brand sales growth is greater than traditional brands. Because the traditional brand channels and markets are more mature, the annual sales volume is relatively fixed. Although there will be growth, the growth will not be great. The Internet brand is from scratch, with a small base and rapid growth. It is normal.
However, Peng Xiandong added: "The question whether Internet brands exceed traditional brands should not be viewed in the short-term, but should be viewed from a long-term perspective." According to the statistics of Yikang from January to May, the traditional brand will have a larger body. .
Hardware and content contest
In fact, the competition between the two camps of traditional brands and Internet brands is based on different profit models and different development routes. Dong Min, General Manager of AVC's Black Power Division, told the China Business Daily that in terms of business models, traditional brands rely on hardware for profit, while Internet brands use profitable software, content and services. mode.
“Traditional enterprises view content and services as added value, while Internet companies regard hardware as the carrier of content, and instead pay more attention to software, content and services.†said Dong Min.
Indeed, unlike traditional brands that emphasize manufacturing and the hardware itself, Internet brands are more focused on software and content. According to LeTV's 2015 financial report, LeTV, which is LeTV New Electronic Technology (Tianjin) Co., Ltd., reported revenue of 8.693 billion yuan in 2015, 4.117 billion yuan in 2014, an increase of 111.65% year-on-year; and a net loss of 731 million yuan in 2015. In 2014, the net loss was 386 million yuan, and the loss range increased by 89.09% year-on-year.
In the case of LeTV's own loss, LeTV has placed profit targets on content, advertising, and applications. The above-mentioned person in charge of LeTV told the China Business Daily that in addition to content payment, the company also has various profit models such as hardware, advertising, and applications. In the era of hardware negative and even free, LeTV does not rely on hardware to make money. Taking advertising as an example, she said that monthly revenue from LeTV’s large-screen advertising is already close to 50 million yuan, which is a multiple of the same period last year. "Simply put, sales of LeTV are increasing at a rate of 100%, and the big screen advertising revenue that they can pull may be 500% or more. The bigger the sales, the more profitable it grows geometrically." Similarly, Xiaomi TV had previously It is also studying ecology and trying to make money through the Internet ecology.
However, at present, Internet TV is still at an exploratory stage. There is no particularly mature model yet. According to the above-mentioned heads of media of Hisense Group, whether the so-called Internet companies have an advantage in television in the end or whether they rely solely on burning money to fight for low prices is currently inconclusive. Like Microsoft, Apple, etc., want to be a home entertainment center, but none of these companies do television hardware products, but just do the box. Now that the way users receive multimedia information is changing, family entertainment centers do need to change, but there is still no successful Internet TV model.
So, which hardware and content model is more advantageous in the current consumer environment? First of all, Peng Xiandong believes that the advantage of traditional brands lies in the improvement of upstream hardware and manufacturing, downstream after-sales service, and installation of a complete industrial chain. The advantage of internet brands lies in content, which can provide users with rich choices.
"Hisense has a technological advantage. Now the first demand for television is still picture quality and experience, and Internet brands do not have the advantage in this regard, generally using OEM production, it is difficult to control product quality. In terms of technology, new display It is impossible for these brands of technology to be used,†said the person in charge of the above-mentioned Hisense Group Media.
According to the above-mentioned person in charge of LeTV, LeTV is different from traditional TVs. In the era of traditional TVs or the era of first-generation smart TVs, the core value of TVs is hardware, which is the screen and structure of televisions. The chip constitutes more than 90% of the value of the terminal product, but the value of the hardware itself is greatly reduced in the form of Super TV. It only occupies 1/5 of the value element, while the other 4/5 elements are exactly behind the hardware. The things are Internet applications, content, and cloud platforms and big data platforms.
In addition, from the perspective of channels, Internet brands have more advantages in online sales, while traditional brands have obvious advantages in online sales. In Peng Xiandong's view, traditional brands have developed for many years under the offline channels, and they certainly have a mature channel system, and they have a relatively stable position in this channel. Internet brands have little advantage if they want to join in, while online channels have a clear advantage over Internet brands. One of the reasons for the rapid development of Internet brands in recent years is the rapid development of online channels such as Tmall and JD.
It can be said that comprehensive comparisons between traditional brands and internet brands have their merits.
Fusion is the future
At present, the competition between traditional brands and Internet brands is still inconclusive, and it takes more time to observe. However, "A brand can only be sustainable in the market only if it has both the manufacturing capabilities of traditional brands and the operating capabilities of Internet brands. Traditional brands are currently developing very hard, and Internet brands have achieved sales of 2 million units and 3 million. Taiwan’s time will also have a variety of problems. This is the result of the incompletion of both capabilities,†said Dong Min.
In fact, under the influence of internet brand content profitability and ecological profitability, traditional brands are also investing more in content and ecology. The relevant person in charge of TCL said in an interview with a reporter from China Commercial Daily: “We used to emphasize products more and more, but now we have focused on user experience. Not only selling products, but also from smart application platforms, game operating platforms, education services. Platforms and other multi-dimensional user operations, enhance user stickiness, provide more value-added services, make full use of our hardware and service advantages. According to reports, the current TCL content is Huan Wang, global broadcast, games, education and many other layouts. The goal is to reconstruct the innovative business model of TCL in the Internet era, achieving 50% of the profits contributed by products and services within five years.
At the same time, Internet brands are also making up for the industry chain's ability to use music as an example. They are also strengthening their capabilities in production and offline channels. According to the above-mentioned person in charge of LeEco, in terms of hardware, LeTV began to join traditional TV manufacturers such as TCL to increase the brand's technology and quality in the hardware field. In addition, the offline channel, she said: "The current share of LePar offline has reached 30%, and will continue to expand in the future. LePar currently has more than 5,500 in the country and will reach 10,000 at the end of this year." It is understood that In 2014, LeTV launched the “LePar Super Partner Program†to recruit partners in the third, fourth, and even fourth- and fifth-tier cities, and establish an experience store with the cooperation and cooperation.
At the same time, Wang Zhiguo, chairman of Kukai Network Technology, recently stated that hardware cannot be truly free. If the hardware is free, consumers may not have much hardware to choose from. The reason why consumers buy hardware of different value is only for higher quality. Big content and good TV complement each other. The thing that cool to do is to use the most professional hardware to present the highest quality content to users.
It can be said that at present, traditional brands and internet brands are moving closer to each other. TCL and LeTV are just one example. The relevant person in charge of TCL said in an interview with a reporter from China Commercial Daily: “In the era of advocating industrial integration and innovation, the definition between the traditional brand and the Internet brand has begun to blur, and more and more TV manufacturers have come to both of them. The intermediate form is closer; and there is an increasing number of 'positive relations' between the two, which urges both parties to optimize their resources."
However, it should be noted that Dong Min believes that now the two camps are integrating with each other and the boundaries will become smaller and smaller. However, the boundary is not reduced because of mutual learning between them, but through the cooperation between capitals, such as the cooperation between LeTV and TCL, the interests and the thinking of both parties agree or move as close as possible. However, if there is no cooperation between capitals, but traditional brands learn from Internet brands, or Internet brands learn from traditional brands, this is hard to learn, because the two genes are different.
“For example, traditional brands make business assessments based on sales volume and profits, so after all, they can't get rid of the criteria of hardware evaluation. It's unthinkable for traditional companies to think that Internet brands use content rather than sales to make assessments. Genes are different, so it is very difficult to learn. It is difficult for traditional brands to learn the operation of users of Internet brands, content construction, and online marketing. It is difficult for Internet brands to learn the manufacturing and after-sales capabilities of traditional brands.†Min added.
Indeed, there are essentially different genes in Internet companies and manufacturing companies. The organic combination of the "heavy" industrial chain and the "lightness" of the Internet has become an issue that companies need to consider. In addition to the cooperation between TCL and LeTV in the industry, the independence of Skyworth's Internet TV brand "Cool" can also be viewed as one of the typical explorations in this area. There are still other ways in which the company still needs continuous exploration.
Disposable elastic earloop Face mask is made of non-woven fiber fabric, comfortable and breathable, soft and skin-friendly, and easy to use.
These Face masks are made to use in an easy and friendly way comfortable and breathable and will not be stuffy but breathe freely, extra soft elastic earloop will make it fit comfortable on your face.
Disposable face mask are effective in protecting against germs, dust and air pollution, safeguard your health and life.
Face mask
Surgical Mask,Disposable Face Mask,Medical masks ,Disposable medical mask
Dongguan City Leya Electronic Technology Co. Ltd , https://www.dgleya.com