China’s local TV market, domestic brands occupy 96.5%
Samsung about 1%… Only Chinese TV is good for the subsidy policy
LCD panel prices are likely to increase next year… Concern about cost burden
TV products from Samsung Electronics and LG Electronics, which are very popular around the world, appear to be being neglected by consumers in China.
Despite the slump in global TV demand, Chinese companies are conducting sales offensives through patriotic consumption and subsidy policies, while Korean TV companies are experiencing a double whammy of having to bear the cost burden due to increased prices of TV panels.
According to Chinese market research company Runto Technology on the 25th, last month, when China’s largest shopping festival, ‘Singles’ Day’ (November 11) took place, shipments of finished products from brands in the Chinese TV market amounted to 3.815 million units, an increase of 6.9% compared to the previous year. .
The Chinese TV market has shown a decline in sales since the beginning of the year due to a slump in consumption, but began to rebound in the third quarter of this year (July-September). This is the result of the Chinese authorities providing a 15-20% subsidy to the consumption of energy-efficient home appliances to stimulate domestic consumption.
Chinese companies take all of these subsidy benefits. The domestic market share of Chinese TV brands reaches 96.5%.
Hisense ranks first in terms of market share based on shipment volume with 23.9%, and three major brands, including TCL and Skyworth, hold a 58.5% market share.
On the other hand, foreign TV brands are unable to gain foothold. According to Runto, the market share of the four major overseas brands in China, including Sony, Samsung, Sharp, and Philips, is less than 5%.
Samsung Electronics is certain to achieve first place in global TV sales for 19 consecutive years by this year, but it is facing great difficulties in targeting the Chinese market.
In order to expand its business in China, Samsung Electronics created a China Business Innovation Team under CEO and Vice Chairman Jong-hee Han in 2021, but the humiliation of only having a 1% share of the TV market continues.
LG Electronics ranks second in the world after Samsung Electronics in terms of sales, but has lost second place to Chinese brands in terms of shipment volume alone. The industry predicts that Samsung Electronics and LG Electronics’ performance in the fourth quarter of this year will not be easy.
Next year, Chinese companies’ offensive may become even fiercer.
LCD (liquid crystal display) panels for TVs are showing an upward trend again due to the increase in TV sales by Chinese companies that benefited from subsidies, which had been showing a stable trend for a while.
In addition to the impact of tariffs due to the launch of Trump’s second term next year and the sales offensive of Chinese TV brands, the Chinese TV industry is also able to withstand the cost burden due to the increase in component prices.
Omdia predicted, “All panel prices are expected to rise in January next year,” and “the price increase for large sizes will be significant.”
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