Who is the savior of "Changhong" who is tied up with Deng Chaochao?

In the headline that Xiaomi Rice always occupies, the traditional home appliance brand that does not sell well has finally occupied the front page of each page. Changhong disclosed a loss forecast of nearly 2 billion for 2015 annual results. As a traditional color TV giant, this allows People can not help but lament that the old color TV giants seem to have gone.

Recalling last September, Deng Chao converted Changhong’s spokesperson from Changhong’s spokesperson to Changhong’s product manager. He was full of topics in the home appliance industry and the entertainment industry. However, the popularity of the running captain still could not save Changhong’s disease. In 2015, more than a dozen Internet TV companies entered the Chinese color TV market. In the face of the market and the impact of Internet TV, Changhong, these traditional color TV brands have indeed not comfortable.

According to the data monitored by AVC, the market share of domestic traditional brands was 77% in 2015, a decrease of 3.8 percentage points from last year; the market share of internet brands was 10%, up 5.1% from last year. On the online front, sales of color TV reached 1.301 million units in 2015, which accounted for 28% of the total channel, an increase of 10% from 2014.
Overall, the increase in the market share of color TV brands in 2015 was faster, and most of the online sales came from the contribution of Internet brands, which had to directly threaten the status of the top five color TV giants. In this tide, why do traditional TVs decline?

For the loss of traditional color TV companies, the first and foremost is the impact of Internet TV. Xiaomi, Leshi, etc., used their own advantages to play a large price war, and pushed the price of TV very low, prompting the price of the entire industry to keep falling. This kind of marketing can not afford traditional enterprises. And with the development of smart devices, users tend to be younger, and Internet TVs that can be independently selected are certainly more popular. Can not meet the new needs of users with the times, bring new experiences, then the influence of traditional television is only in the previous generation.

In addition to the price war and the lack of Internet genes, the impact of the environment has also directly led to the loss of traditional home appliances - the revaluation of the storm and the depreciation of the exchange rate of the RMB against the US dollar.
It is understood that at the end of 2015, the “retreat door” resulted in TV companies requesting refundable subsidies of up to RMB 900 million. The government's subsidy for the home appliance industry began in 2007. The initial motivation was to stimulate domestic demand. However, in the process of implementation, "cheat" acts have always existed.

In addition, fluctuations in exchange rates between China and the United States have also brought losses to traditional household electrical appliance companies. Industry insiders said that "many manufacturing industries are now doing global business. The impact of exchange rate fluctuations on the performance of companies is becoming more and more obvious, especially those outside the country. Industries with a high degree of market dependence, such as steel and petroleum."

In the face of the invasion of the Internet and the factors of the environment, the most important killer is to combine deep technology and Internet thinking, and take the lead in completing the intelligent transformation, so as to maintain their leading edge. Then in 2016, where is the traditional air outlet business?

Innovate hardware and control costs
Hardware manufacturing is the basis for traditional color TVs to survive. Although Internet companies have the ambiguity, it is difficult for them to actually invest in the production of production lines. For traditional color TV companies, the most important thing to do is to use the advantages of being a color TV manufacturer to innovate and make up for the shortcomings of Internet companies.
First of all, as a color TV manufacturer in the field of domestic color TV display technology for several decades, witnessed the development of CRT TVs, LCD TVs, and curved TVs. Of course, its display technology capabilities surpass those of the Internet.

Secondly, in addition to the complete machine production line, like TCL owns Huaxing Optoelectronics LCD screen production line, this production line is rated as first-class in China, Skyworth also shares LG Guangzhou panel factory, in addition, Hisense, Skyworth, Konka and other color TVs also have their own Module production line. In contrast, the biggest weakness of TV brands such as LeTV is that there are no production lines. Whether it is materials or assembly lines are in the hands of others, the control of costs cannot be compared with traditional brands.

In addition, according to Bloomberg data, display screen costs account for 80% of the total equipment cost on many TV sets. And smart phone screens account for only 20% of the total cost of equipment, there is a big gap, that LeTV, Xiaomi have to fully realize the "hardware free", he does not produce, relying solely on OEM pressure is still very large. And these are precisely the strengths of traditional brands.

Fully enter smart home
In the traditional bottleneck development of household electrical appliance companies, it is better to change their minds and focus on a larger place than the living room - smart home. With the improvement of people’s living standards, people’s demands for their own living environment have been continuously improved. Especially in recent years, people’s demands for the home environment have increased dramatically. People want to enjoy a safe and comfortable living environment, and smart home products can precisely help consumption. Provide such "services." As a pure blue ocean market, smart home has attracted a number of giants to start the layout, and in this area, home appliance brands actually have more say.

The data shows that the average number of active daily users of Hisense Smart TV reaches 4.03 million; the cumulative number of activated users of Skyworth is 10145487, the average number of active users per week is approximately 5951080, and the average number of active users per day is approximately 436, 1394; TCL's smart network TV terminals cumulatively activate users. It has reached 18,808,000, and the daily average number of active users is 7,022,000. Deep-rooted traditional TV makers have a reputation for the accumulation of users and the time that Internet TV cannot match. From the extension of the living room to the family, from the black and white to the exchange of electricity, from the concept to scale, the traditional manufacturers have a unique advantage in sizzling and entering the field of smart home. Although a number of manufacturers have launched products at the 2016CES show, how to successfully unlock the market depends on how the traditional corporate brand is known.

Layout virtual reality technology
VR, the next generation of interactive products, “2016 will be the year of VR outbreak” may be the most reliable prediction in the world of technology.
VR allows out-of-focus smartphone makers to find new directions, as well as to open up a new world for traditional appliance makers who are at the bottleneck. At the CES 2016, game and VR exhibitors increased by 77%. More than 40 exhibitors with VR systems and related content, the latest game hardware, software and accessories for mobile devices, PCs and game consoles are numerous.

As a more comfortable living room TV, there are advantages in the use of the scene and experience, VR is also likely to become a part of the traditional home appliance business ecosystem. Although LeTV has launched the first VR glasses, the diversification of the traditional manufacturers can make people have more reason to expect and believe that in the VR industry, everyone is the same starting line.

For traditional enterprises, Changhong and Konka have suffered huge losses. Although Hisense, Skyworth and TCL are still in a good position, they can still feel the impact and shock brought about by Internet TV. For Changhong, the lack of Internet gene is more to say than the full explosion in the Internet age. This lacks the original strength. In fact, for Xiaomi, Leshi and other internet companies, 2015 is also a sword-fighting strike, making the hero a stop. Even if the two sides had fierce confrontation, but there is no lack of cooperation between the two sides to build a product + service ecosystem, in the competition to find the difference in the opportunity to open up new directions, "all-round" players will be the last laugh. Although the road to transformation will not be smooth, the Force has awakened, and fission and agitation have only just begun.

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