In 2017, the color TV market entered a challenging phase, often referred to as an "ice period," with Internet-based brands gradually losing momentum. By 2018, the question became: how could the industry break through this stagnation? What were the key directions for growth in the color TV sector?
The domestic color TV market experienced a significant downturn last year, with sales dropping by over 5-10% according to various reports. The third quarter saw a historic decline of nearly 13% compared to the previous year. From a profitability standpoint, most traditional manufacturers and emerging Internet brands faced losses or declining performance.
Four years ago, when traditional TVs struggled with low usage rates, Internet companies identified an opportunity. Brands like LeTV and Xiaomi revitalized consumer interest, especially among younger audiences. This shift helped boost TV engagement, proving that Internet TV had a crucial role in shaping the future of traditional TV brands.
From its rise to peak, the Internet TV segment grew rapidly. By 2015, the number of Internet TV brands matched that of traditional ones, reaching nearly 20. In 2016, the retail sales of color TVs surpassed 50 million units, showing strong momentum.
However, 2017 brought sudden changes. Major players like LeTV faced sharp declines, while others struggled with financial issues and unstable business models. Many Internet TV brands found themselves unable to sustain growth without solid production systems or long-term investment.
According to Lu Jianbo, Deputy Secretary General of the China Electronics Chamber of Commerce, while Internet TV initially gained traction through content and marketing, it eventually faced challenges when competing on hardware and technology. Without a sustainable model, these brands lost direction and struggled to survive.
As the market cooled down, the question remained: how could the industry break out of this slump? Industry experts believe that brand value, personalization, high-end positioning, and technological innovation would be key factors in determining future success.
First, technological innovation remains at the core of the color TV industry. As consumer expectations evolve, innovation drives progress. While some Internet brands have faded, competition in new technologies is expected to spark fresh opportunities.
Second, upgrading the high-end product structure is a critical direction. With the growing middle-class elite population, consumers are prioritizing quality over price. High-end TVs, including large-screen, 4K, and AI-enabled models, are gaining traction. Products like quantum dot, laser, OLED, and 8K TVs are becoming key profit drivers.
Third, building a smart home ecosystem is essential. Smart TVs are replacing traditional models, with projections showing over 280 million smart TVs by 2020. The ultimate goal is to make the TV the central hub of a connected smart home, enhancing user interaction and engagement.
Despite the challenges, the market still offers opportunities. Companies that adapt and focus on innovation, premium products, and smart integration will likely lead the way in the coming years. The path forward may be difficult, but it's also full of potential.
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