Big Screen Scramble Battle Over Vietnam

After repeated attacks by the Internet's cutting-edge companies, traditional color TV giants gradually stabilized their positions and divided themselves online and offline. They sought to regain the initiative in the smart TV market by opening up the second battlefield.

TV giants take the initiative to “divide”

On April 1st, the online brand “Cool Open” of Skyworth, a color TV company, announced its independent operation and acted as a “pointer” for Skyworth in the operation of Internet TV. After the "Cool Open" debuted, the smart TV products use a smart screen to provide exclusive experience interfaces for children, the elderly, and young people to meet the content needs and usage habits of different groups. This breaks through the mindset of Internet TV focusing on young people in the market and integrates the needs of the two groups of children and the elderly. Wang Zhiguo, chairman of Coolopen, expressed that the essence of competition is still product innovation. Internet TV not only needs a breakthrough in technology, but also requires the user's experience to be recognized.


Not long ago, Konka's online brand "KKTV" also set up the company to operate independently, with the goal of "rebuilding a Konka online." The strategy of “KKTV” is to upgrade from “selling TV” in cooperation with Internet companies in the past to “cooperation with television”. According to the person in charge of the company, the brand will use Taobao, a massive user platform, to collect user demand data, reverse custom configuration, functions, modules and application combinations to integrate film and television, games, music, shopping, education and services on the Ali platform. Life service applications to meet the individual needs of young users.

The above-mentioned enterprises split online brands, indicating that the color TV industry has achieved preliminary results in the "testing water" of the smart market.

Face the harsh test of online competition

In 2013, Internet companies such as LeTV and Xiaomi have strongly attacked the smart TV market. In 2014, LeTV Super TV sales exceeded 1.5 million units, completing the annual sales target one month ahead of schedule.


In order to seize the large screen of the living room, Internet companies use hardware cost pricing, channelization, content charging and other new games, breaking the bottom line of the smart TV market again and again, winning the support of many fans. Under the impact, the color TV giants such as Konka, Skyworth, Changhong, and TCL have started to create online Internet TV brands that are different from the traditional main brands in response to new demands and purchasing characteristics of Internet consumer groups. competition.

At present, the online brands of the color TV industry have gained autonomy in personnel, business, and finance. They also directly face the rigorous test of online competition and began to “hardcast” companies such as Leshi and Xiaomi. From the point of view of the most concerned about the cost performance of the online market, Xiaomi has just launched a 40-inch TV with a price of 1999 yuan. The new price of the “cool open” 43-inch TV is locked at 1999 yuan, which is more aggressive in creating a cost-effective explosion model. From a marketing point of view, "KKTV" and "Koukai" have adopted marketing methods such as sales on Tmall, Jingdong and other online sales, scheduled sales, and limited purchases, which greatly reduce the cost of channels, and are on the same starting line with Internet TV companies. . From a production perspective, Coolo and KKTV rely on the parent company's color TV production advantage over Levision and Xiaomi.

Steady Transformation Layout Market Blue Ocean

According to the analysis of experts, the color TV industry sub-brands are so brazen on the line, there are short-term and long-term considerations in terms of scale and effectiveness, reflecting the strategy of color TV giants seeking steady progress.

On the one hand, it is for the purpose of speeding up and scaling up. Last year, the overall market for China's color TVs experienced a negative growth, with total color TV sales totaled 44.61 million units, a year-on-year decrease of 6.6%. The overall color TV sales this year are also expected to be less optimistic. Compared with the sluggishness of the offline market, sales of color TVs in the online market have shown a rising trend. In 2014, online sales reached 7.87 million units, accounting for 18% of the total channels. Domestic color TV companies that are in an excessively competitive state, if they want to consolidate their market share or even rewrite the market structure, it is a key move to force online sales. For example, “Cool Open” sold 550,000 units last year. In the first two months of this year, online sales exceeded 200,000 units, and the annual sales target was set at 1.5 million units.

On the other hand, it is to promote transformation and compete for more business opportunities. According to the estimation of Ovid Cloud, the annual sales value of smart TV hardware is about 150 billion yuan, and the annual value of smart TV content and applications is about 300 billion yuan. Under the Internet economy, the pattern of relying on hardware to make money in the color TV industry is gradually failing. Some new entrants sell TV hardware at all costs, in order to gain credibility and circle users, and possessing operational users has strategic assets. For example, LeTV does not rely on hardware to make profits. Instead, it provides users with valuable value-added services and continues to have a strong relationship with users. It has content, services, advertising, and multiple profitability models. However, the transition from a traditional color TV enterprise to a new business model cannot be accomplished overnight. Starting with the sub-brands, piloting and creating replicable experiences is an active and safe choice.

Wang Zhiguo revealed that the position of “Cool Open” is to become the entrance of Skyworth Group’s Internet TV. According to the current plan, this year's Internet TV activation target is to reach 15 million units, and the number of weekly active users is expected to reach 10 million. The general manager of “KKTV” Zhang Junbo stated that they will value the conversion, activity and connection strength of users more. The 1.5 million active users are the goals to be reached this year. "With the user's foundation, product sales and extended applications and value-added services will continue."

“The color TV industry needs to stand on the door of 'Internet +' and follow the trend.” Liu Wei, vice president of Aowei Cloud Network, believes that traditional TV companies can speed up online distribution and intelligent development, and they are expected to open up a new market blue ocean.