The contribution of the large home appliance chain to the growth of the flat-panel TV market has shown a decline for the first time, and the contribution of local home appliance monopoly and boutique stores surpassed that of the large chain for the first time. The monthly summary data of Ovey Consulting, an industry organization, shows that in the first 11 months of 2011, the sales of flat-panel TVs accumulated by large-scale chains accounted for a drop of 3 percentage points from the same period last year.
Previously, home appliance stores such as Gome and Suning have occupied a very proactive position in the sales of flat-panel TVs. In the past five years, their share of color TV sales has been on an upward trend, firmly occupying over half of the market share. However, this situation changed in 2011.
The industry generally believes that the decline in sales share is mainly due to the increase in the number of specialty stores that divert consumers. Since last year, Changhong Group has established specialty stores through the way of Changhong TV and Meiling Baidian Black Power. Skyworth has piloted TV stores in Guangzhou and plans to open hundreds of stores in the country. The responsible persons of Hisense and TCL also told reporters that they are increasing their efforts to open stores in the 3rd and 4th markets.
There are two main reasons why companies increase their efforts to open stores. The first is the shift of sales main battlefield highlights the importance of the store channel. Since the third quarter of last year, the primary and secondary markets have gradually become saturated, and color TV companies have extended their reach to the tertiary and tertiary markets. Yu Weixing, general manager of Ovid Consulting, pointed out that the layout of many large-scale chains in the 34 markets is not perfect, and sales of flat-panel TVs have to rely on boutiques and specialty stores.
Another important reason is that large-scale chains have exploited the substantial profits of color TV companies and these companies have to open their doors. It is understood that the color TV's profits only about 30% of the cost price, but the large chain will receive the total cost of the forest, the store is generally on the monthly return of 16%, the store management fee is 3%, the counter production costs 2% -3%, promoter commission 2 %, promotional fees and entry fees average 4%-5%, plus other freebies, additional rebates, etc., the total cost rate is at least 25% -30%, which makes TV companies have no profits.
Appliance analyst Liu Buying pointed out that with the improvement of self-built channels for manufacturing companies, the leading position of large-scale chains is facing challenges. For a long time, color TV companies have weaker channel capabilities and are more dependent on this large chain of sales chains. However, color TVs are beginning to show signs of being out of store development, not to mention the more powerful white power channels.
Previously, home appliance stores such as Gome and Suning have occupied a very proactive position in the sales of flat-panel TVs. In the past five years, their share of color TV sales has been on an upward trend, firmly occupying over half of the market share. However, this situation changed in 2011.
The industry generally believes that the decline in sales share is mainly due to the increase in the number of specialty stores that divert consumers. Since last year, Changhong Group has established specialty stores through the way of Changhong TV and Meiling Baidian Black Power. Skyworth has piloted TV stores in Guangzhou and plans to open hundreds of stores in the country. The responsible persons of Hisense and TCL also told reporters that they are increasing their efforts to open stores in the 3rd and 4th markets.
There are two main reasons why companies increase their efforts to open stores. The first is the shift of sales main battlefield highlights the importance of the store channel. Since the third quarter of last year, the primary and secondary markets have gradually become saturated, and color TV companies have extended their reach to the tertiary and tertiary markets. Yu Weixing, general manager of Ovid Consulting, pointed out that the layout of many large-scale chains in the 34 markets is not perfect, and sales of flat-panel TVs have to rely on boutiques and specialty stores.
Another important reason is that large-scale chains have exploited the substantial profits of color TV companies and these companies have to open their doors. It is understood that the color TV's profits only about 30% of the cost price, but the large chain will receive the total cost of the forest, the store is generally on the monthly return of 16%, the store management fee is 3%, the counter production costs 2% -3%, promoter commission 2 %, promotional fees and entry fees average 4%-5%, plus other freebies, additional rebates, etc., the total cost rate is at least 25% -30%, which makes TV companies have no profits.
Appliance analyst Liu Buying pointed out that with the improvement of self-built channels for manufacturing companies, the leading position of large-scale chains is facing challenges. For a long time, color TV companies have weaker channel capabilities and are more dependent on this large chain of sales chains. However, color TVs are beginning to show signs of being out of store development, not to mention the more powerful white power channels.
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