In China, television is beginning to become an optional home appliance. In 2019, the Chinese TV market is not environmentally friendly for most brands, but although there are not many bright spots, they all have the ability to have a huge impact on the future development of the industry.

1.8K TV exposure ignites high-end contention

8K TVs are coming together. Samsung, Sony, TCL, Skyworth and other domestic and foreign manufacturers also claim to lead the TV industry into the 8K era. Following the high level of product maturity and the supply chain situation, the competition slowly opened the gap, and Samsung and Sony became the two brands capable of providing complete 8K TV solutions in 2019.

2.Smart screen enters the market, industry exclaims wolf is coming

Honor and Huawei have announced the entry into the large-screen home market with the name of smart screens, perfect interconnection with mobile devices, rich and practical low-level programs, and unique and innovative functional designs. Once the smart screens are released, they will immediately attract the attention and changes of the TV industry Overnight, various "smart screen" products flooded the e-commerce platform.

3.OLED opens new plant, supply shortage is eased

OLED TV with 26.8% attention has become the most popular TV category in China's TV market in 2019. South Korea's LG Display, the sole supplier of TV OLED panels, is seeking a solution for OLED panel supply in short supply. On 29th, LG Display's Guangzhou 8.5 generation line OLED panel factory was completed, and the production capacity obstacles that plagued the further expansion of OLED TVs became history.

4.Millet sells tens of millions, hidden in new record

In the release of the final sales results for 2019, most brands appear to be quite low-key. Only Xiaomi TV announced a high-profile annual sales breakthrough of 10 million, which is commendable for an Internet TV brand with a history of less than 10 years. It is understandable to regard this achievement as the success of Xiaomi TV at the strategic level, but a series of hidden worries behind it should also attract the attention of the industry, with homogeneous products, sluggish technological innovation, and unregressive experience.

A brief review of several major events in the Chinese TV market in 2019, let's look at 2020 and see what changes we will see in the next time:

1. Market sales stopped falling and stabilized

Since the Internet TV entry has triggered the TV generation trend, the growth stage of China's TV market sales volume has come to an end in 2018. Judging from the data not yet released by some organizations, the sales volume of China's TV market in 2019 is also a year-on-year decline. It is expected that in 2020, the Chinese TV market will briefly shake off the downturn and achieve positive growth. The three basis of this forecast is: The old TV user base in China is relatively large. According to the 7-year service life of TV products, it will still be TV in 2020. In the peak period of replacement, the demand for replacement consumption is strong; in 2020, the Tokyo Olympics will realize the 8K video signal broadcast for the first time, and the stimulation of new technologies will trigger the replacement demand of high-end users; In 2020, the traditionally positioned high-end TV categories are expected to significantly adjust the market strategy , Began to capture the low-end market, such as OLED TVs, or 8K TVs that attracted a lot of attention in 2019.

Due to the existence of the above industry trends, we are optimistic that the sales situation of the Chinese TV market will be improved in 2020. Consumer demand is expected to stand up on the strength of the lack of real estate and other favorable economic conditions.

2. Price war spreads in mid-to-high end

In 2018 and 2019, the price war in the TV market is booming. The weak market demand has further exacerbated the dependence of brand manufacturers on price leverage. As a result, a large period of decline in TV prices has occurred. As a result, upstream display panel companies have been affected. Even in the third quarter of 2019, 55-inch and other mainstream LCD panels were sold below the cost price. On the other hand, in the context of the "unprofitable" traditional mainstay of shipments such as 55 inches, large-sized products such as 65 inches and above have become manufacturers' exports that maintain normal profits. In 2020, the upstream panel production capacity will continue to exceed supply under the dominance of Chinese companies. Brand manufacturers can only compete for profits in the large-size, mid-to-high-end markets to make up for losses. Therefore, the price war spreading to the mid-to-high-end markets is also a high probability event in 2020.

3. 8K TV expects stress to erupt

8K TV has completed its dazzling appearance in 2019. After a series of hype and controversy, 8K TV has become an important choice in the upgrade target. In March 2019, the Ministry of Industry and Information Technology issued the "Ultra HD Video Industry Development Action Plan (2019-2022)" and gave the expectation that "the overall size of China's ultra HD video industry will exceed 4 trillion yuan in 2022", which will undoubtedly Bring great boost to China's ultra-high-definition video industry. 2020 is a key year in the Plan. The 8K broadcast of the Olympic Games and the hosting of the European Cup events will provide rapid penetration of ultra-high-definition television, especially 8K television. Good environment. Especially under the background of Samsung, Sony, Sharp, LG and other leading brands digging up the space of the 8K TV market, 2020 will be the year when the 8K TV market explodes.

4. OLED continues to increase penetration

OLED has established a good image of professional imaging, art design, high-end consumption, and quality of life in the Chinese TV market. In 2020, after the mass production of LG Display's Guangzhou factory is completed, and OLED panel supply is in short supply, OLED TVs will welcome With a new strategic upgrade, it is reported that 48-inch OLED TV panels are already in mass production plan. Compared to 55-inch, 65-inch, and 77-inch flagship OLED TVs, the emergence of 48-inch also released the signal that OLED began to snatch the central market. In addition, Huawei and Xiaomi, the two most influential brands in the Chinese technology market, have also announced that they will join the OLED camp in 2020 to launch related products. This is undoubtedly exciting news for the further expansion of OLED TVs in the Chinese market.

5. Innovative product form

In 2020, we may see a TV form that is different from the previous boxy one screen. These innovative products include curled, folded and even transparent TV products. Of course, smart screen products based on the "living room large screen mobile phone" as a blueprint. Also falls into this category. The richer forms correspond to user-generated or potential application requirements. The emergence of these products will greatly expand the applicable scenarios of the TV category, and we maintain high expectations for this.

6. Huawei/ Xiaomi is worth watching

In terms of TV brand manufacturers, we think that Huawei and Xiaomi deserve special attention in 2020. Huawei Smart Screen has screamed the "10 million units" sales target at the beginning of its debut, and this result was first achieved by Xiaomi in 2019. Judging from the Chinese TV market's annual sales of 45-50 million units, it is unlikely that two brands will achieve 10 million sales at the same time. Therefore, in 2020, the competition and wrestling between the two brands may be an interesting aspect. In the end, the quality experience of smart screens prevails, or the price war of advertising TVs dominates the ups and downs, please wait and see with us.

Source: China State Grid