Internet TV brand low price war can not stop the road to burning money

The low prices of Internet TV brands have been rekindled and the road to burning money has not stopped. Just in September of the past, a large number of new Internet TV teams set off a low-price war and once again triggered the attention of the industry, market and consumers. Why in the past two years or so, Internet TV brands have been fighting for price wars. How long can these internet TV brands fight at low prices?

In fact, behind the low price wars of a group of Internet TV brands, such as LeTV, PPTV, and Cool Open, a group of internet companies that have high-profile access to the TV industry are experiencing “life-and-death”: market stagnation, marketing stall, and sales promotion. The tide of shuffling is attacking all Internet TV companies.

Internet TV brand low price war can not stop the road to burning money

Low price war re-launched TV

After entering the era of LCD flat panel TV industry did not expect, but in a few short years, the price of a 50-inch smart TV, even fell below 2,000 yuan, can not keep up with the price of a mainstream brand 5-inch smart phone.

Since September, a large number of enterprises dressed in the coats of “internet TV brands” have launched a round of low-price chaos in the Chinese color TV market in the name of brand day and activity day. And it also announced that it has captured more than expected performance.

The little-known TV viewer still claimed that the entire network had an appointment of over 450,000 units. Behind it is: 42-inch smart TV 1199 yuan, 4K50-inch smart TV sold 1999 yuan. Set a new low price of color TV industry.

Similarly, micro-whale TV, which is backed by the Chinese Cultural Fund, claimed that the entire network has booked over 318,000 units. The price of related television products also set a new low, and shouted the slogan "than free value."

The PPTV backed by Suning Yunshan Dashan announced that it had sold over 96,000 units in 15 minutes. This time, PPTV didn't fight a low price war, but borrowed LeTV's "hardware free" to launch "0 yuan purchase" and buy members to send TV.

The goal of LeTV's 919 is to target 4 billion yuan, deducting hardware such as mobile phones and accessories. It is roughly estimated that LeTV sold nearly a million units (actually more than 800,000 units). In the same way, in order to achieve this goal, LeTV will continue to implement the "buy member to send hardware" gameplay. All hardware TVs will be sent free of charge as long as members purchase relevant years.

Although in this round of low-price wars, Storm TV and Xiaomi TV did not announce follow-up, but as the Internet TV brand wants to ignore this round of low-price wars, it is obviously only possible to face an embarrassing situation.

Why Internet Companies Play Cheap

It can be seen that the protagonists of this round of low price wars are all Internet TV brands. There is no figure in traditional TV companies. The reason behind this phenomenon is very simple. In the color TV market competition, in addition to the low price war, Internet TV brands can no longer find other better methods.

First, these Internet brands are still in the offensive stage and they do not occupy a place in the color TV market. In particular, for the market share of Hisense, Skyworth and TCL, the three brands have continued to increase, and these Internet brands have no choice but to die.

On the other hand, these Internet brands can no longer find other market competition means and methods besides playing a price war or implementing a “buy member sending hardware” promotion campaign. After all, price promotions are simple, direct, and effective.

In fact, it should be noted that whether it is to look at still, small whale, barley, popular, or storm TV, PPTV, in the color TV market is only a short 2-3 years, and even some only one year. Most of the companies belong to “speculators and purses” in the TV market: they do not have their own professional product technology R&D team and system; 2 they do not have a perfect supply chain and industrial chain; 3 they manufacture basic outsourcing OEMs; Sales are basically concentrated in e-commerce online shopping;

As a result, many Internet TV brands are a typical "marketing company", "planning company", and "advertising public relations" company. The core of the company is not to provide users with a high-quality TV product, but to constantly take it. Some promotion methods, create some concepts, cater to the so-called consumer demand and eyeballs. After all, playing a low price war is the easiest way to become famous.

The truth behind the "low price war" game played by a large number of Internet TV brands is that the new round of corporate shuffling in the color TV industry has been fully started and opened in 2016. There are a large number of new television players that are branded with user thinking and the Internet banner. Its development and competition in the market have been pushed to the corner, either advancing or exiting.

What kind of business story is hidden behind

A new round of low-price war hits behind the Chinese color TV industry. Although the protagonist has changed from a traditional color TV giant to a new army on the Internet, its efforts have reduced the price of the whole industry and all categories into the model of the kingpin and the explosion. Price reduction and eye-catching, in essence, contradicts the arrival of the three major turning points of industrial development and reform.

First, the industry's new entry barrier has improved. Every round of low-price competition in the industry is a round of industry-related companies. The important moment of reshuffling through price wars is also an important means of raising and pushing the industry to enter the threshold. In the past, after traditional companies launched multiple rounds of shuffling online, the six brands of Hisense, Skyworth, TCL, Changhong, Konka, and Haier were basically formed.

However, this round of more than 20 Internet TV brands gathered behind the color TV market, you need a new round of reshuffle so that good money to drive out bad money. As a result, this has also become a new round of reshuffle for Internet TV brands, pushing the industry into an important moment for entry barriers.

Second, the industry ushered in a new turning point in development. In the past, the turning point in the development of the color TV industry was mainly focused on display technology. LCD panels replaced CRTs, and current OLEDs, even lasers, wanted to replace LCDs. Now, the new turning point in the development of the industry has become a hardware, competition with content, and ecology, and even new business models such as selling content, selling advertisements, and investing in money, grabbing users, and so on.

As a result, there have been many Internet TV brands rushing to grab users and grab the market through the “below cost” strategy. Even these low-price wars are not small and powerful. In essence, these methods are not wrong and right, but they are just new changes since the era has reached a certain stage.

Third, the industry is experiencing a phoenix nirvana. The entire color TV industry has been driven by hardware from the past, ushering in a new era of hardware, content, and ecological multi-wheel drive. Therefore, people can not easily deny the value of hardware, the ecological significance of content, we must build a multi-legged walk of innovation.

From this point of view, for traditional enterprises that are good at hardware and Internet companies that are good at content and ecology, they need to embrace each other and take advantage of each other. It is definitely not a simple confrontational relationship, but a continuous deep integration relationship.

From this point of view, the low price wars of future Internet TV brands can also burn for a long time. Not only depends on the endurance and ability of some Internet TV brands, but also on the reshuffle process of the entire color TV industry. After all, as soon as the entire TV market is reshuffled, the price war of a large number of Internet TV brands is bound to “fail”.

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