The emergence of the new crown pneumonia epidemic has given most people the opportunity to return to the TV screen this holiday. According to the research report on the viewing inventory during the Spring Festival provided by Gouzheng Data, the average daily activity rate of domestic smart TVs during the Spring Festival reached 52%, a year-on-year increase of 15.6%. During the Spring Festival, the average daily active scale of domestic smart TVs reached 114 million units, an increase of 35.7% over the Spring Festival last year. During the Spring Festival, the average daily TV viewing time was 6.33 hours.
Different from the optimistic situation of the growth of smart TV usage data, TV companies have not had a good time recently. The shortage of labor and blocked logistics are seriously affecting the trend of China’s TV market in 2020. Ovi Ruiwo predicts that, partly affected by the epidemic, global TV panel shipments in the first quarter of 2020 will drop by 8.7% year-on-year, and there is a risk of tight supply. On the other hand, the market demand in the first quarter will also decline due to the impact of the epidemic. It is judged that the price of TV panels will continue to increase slightly in February.
Will TV prices go up in 2020?
Since TVs are different from health home appliances, they are less affected by major health and safety incidents. In addition, most TV products do not require professional installation. Similar to the recent special period, the impact of TV online sales is relatively optimistic. Therefore, we believe that consumer demand for TVs is limited by the impact of the epidemic.
As the development trend of the epidemic becomes clear, the overall demand for the TV market will recover, and the overall sales throughout the year will advance at a rhythm of low and high. Important sales nodes were released centrally.
After looking at the demand side, let’s talk about the supply side.
The cost of Display panels dominates the price change of TVs. Wuhan, where the epidemic has been severe this time, is also an important town for optoelectronics. Many upstream display companies are deploying production capacity here, but most of them are small and medium-sized panel production lines, or TV panel production lines are still in production. Not fully operational. Therefore, the Wuhan epidemic has limited impact on the existing production capacity and supply of TV panels. Moreover, the manufacturing environment of upstream display panels has been highly automated, and the demand for personnel usage is low, so it can be optimistically judged that the price change of TV panels after the epidemic will continue the previous trend of small growth.
Since both the demand side and the supply side are less affected by the epidemic, will TV prices remain the same in 2020?
We feel that other factors should be considered, and we believe that the obvious difference exists between low-end products and high-end products. The reason comes from the impact of the epidemic on sales channels. Due to the potential health and safety hazards, offline sales have been under great pressure recently, and online sales channels have taken advantage of the trend to grab offline shares. Looking back on before and after the epidemic in 2003, online channels ushered in the first take-off of market share. Aowei Cloud predicts that domestic online TV sales will account for more than 60% in 2020.
Offline channels are greatly affected by the epidemic Offline channels are greatly affected by the epidemic
The best-selling products in online channels are often low-end products, and users focus on price; offline channels carry the sales of most high-end products, and users focus on quality. The special situation in 2020 will drive out high-end products and fully join online channels to compete with cost-effective products. It is bound to require high-end products to continue to squeeze the price water and expand the audience. Therefore, we believe that the price of high-end TVs will increase in 2020. There is a certain downward trend. The mid-to-low-end products have been squeezed out of profit margins in the uninterrupted price wars in 2018 and 2019. Continuing to survive will inevitably strengthen shortcomings in terms of picture quality, functions, and experience, and improve the gold content of “cost-effectiveness”.
To sum up, we believe that the average price performance of China’s TV market will continue to decline in 2020, but whether it is low-end entry-level products or high-end flagship upgraded products, their own purchase value will be truly improved, which is only for consumers. more meaningful.
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