It's too early to sing the internet TV industry

The collective appearance of Internet TV brands broke the long-term calm in the color TV industry and drastically changed the industry. Today, Internet TV brand camps account for about 20% of the market share of China's color TV market and have become the mainstream of foreign brands.

But it is this speed of development that makes the Internet TV brand has always been at the forefront and controversial. Since 2017, LeTV and other Internet TV brands have begun to decline due to the tight funding chain, which has slowed down the overall growth of Internet TV sales. As a result, the industry’s arguments for the decline of Internet TV brands have appeared from time to time. Some even assert that Internet TV brands are Toward extinction.

The author believes that the remarks on the demise of Internet TV brands are purely nonsense. After all, Internet TV brands such as Xiaomi and Kukai are better at smart TV operating systems, software, movie and TV drama content, and user experience, and bring new business models to them. The traditional color TV industry's "pure hardware operation model" has caused a huge impact, but also has a strong vitality, for the color TV industry to open up a new outlet.

Internet TV industry shuffles, market enters adjustment period

In previous years, the development of Internet TV brands has been smooth. On July 3, 2013, LeTV Super TV was launched for sale. Since then, the Internet TV brand has been launched. Since then, TV brands such as Xiaomi, Kukai, Storm, PPTV, Microwhales, Kansang, and Popular have successively introduced new products. With the advantages of cost-effective, low-cost e-commerce channels, and content operations, they have rapidly increased sales, and the Internet TV industry has entered gold. Development period.

However, the development of anything cannot be all the way to singing.

The overall color TV industry in China was sluggish in 2017, with the total sales volume and sales volume dropped significantly year-on-year. In the National Day Mid-Autumn Golden Week that has just passed, it has not been able to stop the downward trend. According to the data from Ove Cloud Network, the sales volume of the color TV market during the 11th promotional period decreased by 15.6% year-on-year, and its sales decreased by 11.9% year-on-year.

In a sluggish environment, the overall sales of Internet TV brands have been sluggish. They have entered an adjustment period and the speed of reshuffle has increased. In particular, the price of LCD panels in the upstream market has continued to rise since last year, making Internet TV brands under pressure, and the “negative-profit model of sales below cost” previously held by LeTV and other Internet TV brands suffered setbacks, and its market sales and share have begun to increase. Fell.

However, a small number of Internet brands such as Xiaomi and Cooca have brought gloomy opportunities to the gloomy market. They seized the opportunity of upgrading the consumer market and transforming the industry, followed the trend, strengthened their own brand building, enhanced their overall product strength, and achieved greater market breakthroughs. . For example, Xiaomi TV's sales have increased significantly year-on-year and its market share has improved. Cool TV is to accelerate the industrial layout, capital integration, product innovation and achieve steady development.

Backed by Skyworth's blessedness, Cool TV is accumulating

Xiaomi and Kukai were considered by the industry to be better in the Internet TV brand.

Millet TV has been the main cost-effective, "high-end configuration, mid-range price" positioning, has won market recognition. In recent years, Xiaomi TV has made all-round improvements in terms of sound quality, picture quality, technological quality, content resources, and smart control experience. This has made Xiaomi TV the first echelon of Internet TV brands and has maintained a strong growth momentum.

In contrast, although the sales growth of cool-on TV is not as strong as that of Xiaomi TV, it is still full of stamina. Cool Sky is a subsidiary brand of Skyworth. Since its inception, it has owned the dual genes of Internet TV brands and traditional TV brands. It is backed by Skyworth and has unique advantages.

The author believes that Cool TV's advantages are concentrated in five aspects: strong manufacturing capabilities, complete logistics and after-sales service systems, strong product innovation capabilities, strong user operations, and sufficient capital.

Most internet TV brands do not have production plants and can only choose to produce on behalf of factories. CoolTV is directly produced by Skyworth's factory. It is easier to control and adjust in terms of upstream raw material procurement, product process quality and reliability management, and shipping schedule, and is more secure in product hardware manufacturing.

In addition to the advantages in hardware manufacturing, Coolopen also owns Skyworth's service system throughout the country. Skyworth's service system includes warehousing, logistics, distribution, installation, and after-sales maintenance. Such a huge service system is not available in most Internet TV brands and cannot be established in a short time. They can only be outsourced to traditional TVs. Business to complete. Cool TV, on the other hand, has Skyworth's strong logistics and after-sales service system support from its inception.

Following the innovative spirit of Skyworth Skyworth TV, Cool TV pays attention to the innovative ability of the product, and the launch of new products is always accompanied by revolutionary technological innovation. For example, in 2017, CoolTV has launched two anti-Blu-ray education television products, Cool Open A3 and Cool Open U3B. These two new products have made Blu-ray and children's education a breakthrough and ingenious. Among them, Coolo's anti-Blu-ray technology solves the problem of loss of image quality caused by previous anti-blue light technology and can better protect both eyes. Cool open "optical anti-blue light" technology has been certified by Germany TUV Rheinland anti-blue light technology; and has obtained the "2017 innovative technology" certificate issued by the China Video Industry Association (CVIA). At the same time, these two new televisions, whether from the design point of view, or from the display screen, hardware configuration, are not lost to other brands of television.

In terms of user operations, the cool open system used by CoolTV has a large user base. According to the latest data, the number of users who activate the Cool Open system is as high as 24 million, and daily live users have exceeded 9.7 million. At present, not only Cool Open, Skyworth, Panasonic, Philips and many other big brands have adopted the Cool Open system. Based on the openness, the new open end of the Coolopen system is far more than your friend, and it is estimated that 15 million new terminals will be added every year. In addition, the cool open system big data shows that cool open smart TV users have three high characteristics of "high academic qualifications, high income, high positions," compared to other terminals, the user community is more quality.

The advantage of Coocaa has made the partners iQIYI and Tencent see greater cooperation prospects. In September 2016, iQiyi invested 150 million yuan in strategy to open Coocaa, and accelerated the development of the smart TV market in terms of “content + system + capital”. On June 6th, 2017, Tencent announced that it had invested RMB 300 million to open a new product launch conference. The relationship between the two parties has also extended to capital cooperation following content cooperation. Both iQiyi and Tencent have acquired shares and provided strong financial guarantees for the development of Coocaa.

Thanks to its multi-faceted advantages, the support of Skyworth, a major shareholder, and the financial protection of its partners, Cool TV has accumulated a strong foundation and has built a strong product competitiveness that stands out from the many Internet TV brands.

Promoting multi-faceted changes in color TV industry, Internet TV brands are booming

The traditional color TV brand has accumulated years of industry resources and product technology accumulation. Its product quality is excellent and its foundation is deep, which occupies most of the market share. Taking the performance of Sharp TV and Skyworth TV in the 11th promotion period as an example, according to the data from Ove Cloud Network, the two traditional TV brands of Skyworth and Sharp rank among the top three in terms of offline sales, and the top four in online sales share. .

The advantages of traditional TV brands are undeniable, but the power of Internet TV brands can not be ignored. Although the Internet TV brand was born late, it has contributed a lot to the development of the color TV industry. Its rapid rise has injected an important impetus for channel change, upgrading and transformation of the color TV industry and the shaping of new business models.

After the Internet TV brand entered the color TV industry, it vigorously explored online channels and greatly reduced channel costs. Terminal sales prices have obvious advantages over traditional channels, attracting a large number of consumers to purchase online. With the formation of online consumption habits, online channels have become an important channel for the color TV industry.

Through several years of development, various aspects of Internet TV brands have matured and their innovative business models are being formed. Internet TV brands and content, e-commerce, education, games, and more ecological cooperation, profit from content and services. Coolo chairman Wang Zhiguo once said that after the content was split into 2016, Kukai’s operating income was as high as 167 million yuan. It is expected that Kuokai's performance will continue to maintain its annual growth rate of more than two times in the next two to three years.

This year, although Internet TV brands have experienced storms, the camps have changed several times, and the survival of the fittest has become the norm. However, companies that can truly stand the test of wind and rain have already embarked on a new journey. Internet TV companies represented by Xiaomi and Kuakai are cultivating their products and their market competitiveness is becoming stronger. They are becoming a new force in the rise of Internet TV brands. Therefore, it is too early to sing the Internet TV industry.

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