Large-scale transformation of traditional color TV setbacks

Zhou Houjian, deputy to the National People's Congress and chairman of Hisense Group, announced during the two sessions this year that it will launch Internet TV for the "sinisters" and "wireless families" and achieve "a TV with massive video content without having to pay cable TV." Conjectures of this model from the outside world. The traditional TV industry has never been so lively. Recently, the TV industry bigwigs have also expressed their attitudes towards the end of Internet TV. The topic of Internet TV has once again become hot.

However, the latest sales figures are actually pouring cold water on the big brothers. Since LeTV and Xiaomi entered the Internet TV industry last year, the traditional industry seems to have been completely subverted overnight, and traditional TV giants that are unwilling to wait for them have also started operations. Hisense VIDAATV, Konka KKTV, TCL iQIYi TV+, Changhong CHiQ have emerged as the times require. . According to the latest data, last year, the traditional home appliance business Internet TV accounted for less than 0.6% of the industry's sales, with only more than 300,000 units, and only LeTV and Xiaomi's sales volume exceeded 300,000 units, causing the outside world to question the origin of the former's outbreak. Department. According to the industry, in the face of the invasion of the Internet companies, traditional TV-transformation of Internet TV is not "box-based watching TV," but the use of Internet thinking to transform business models.

Sales-to-cold-transition flagship product sales accounted for less than 0.6%

Recently, Zhou Houjian, deputy to the National People's Congress and chairman of Hisense Group, announced that it will launch Internet TVs for the "Xiangzu" and "Wireless" to realize "there's no need to pay for cable TV, but TVs with massive video content."

Zhou Houjian said that this change was due to changes in the user base. He focused on the “line family” (ie, no longer pays for cable TV charges and switched to watching Internet video), “wireless family” (that is, even the cable TV Do not take) these two young 80s and 90s later. Hisense hopes to launch an Internet home smart terminal for webcasting and video aggregation. However, Hisense did not disclose more details of the plan.

In addition to Hisense, traditional business leaders such as TCL and Changhong have also frequently stated their position recently, constantly declaring their determination in the transformation of Internet TV and updating the strategic layout of Internet TV in succession. In fact, starting from last year, Hisense VIDAATV, Konka KKTV, TCL iQIYI TV+, Changhong CHiQ, and Haier Mooka have been launched in succession. On February 14th this year, TCL and iQI The launch of 9 new products, known as the "TV+ family," and boasts that the family will sell 1 million units in 2014.

However, this series of products of traditional household appliances companies encountered Waterloo in the market. According to Ovid Consulting's data, in 2013, the total volume of domestic retail sales in China's color TV market was 47.81 million units, an increase of 13% year-on-year, with total domestic sales of 172.2 billion yuan. However, according to the current official statistics, the Southern Reporter’s statistics show that the sales of Internet TVs launched by traditional household appliance companies are only over 300,000 units, accounting for less than 0.6% of the entire industry, which is almost negligible.

Maybe it can be explained that the layout of the company's Internet TV has not yet begun, may need to run-in period, but on the other hand LeTV and Xiaomi TV, as of now, the former sold more than 300,000 units, the latter's official website booking has exceeded 60,000 units. It should be noted that the latter two are far inferior to traditional enterprises in terms of hardware.

The business model remains unchanged
Why the traditional Internet TV sales are cold? In the industry's view, in addition to Internet products intensified market competition, the price war is prevalent, the fundamental lies in the traditional appliance company's Internet thinking is still not really formed, this kind of thinking is embodied in the profit and marketing business model The transformation. According to Liu Buchen, chief consultant and home appliance analyst of Kuafu Enterprise Management Consulting Group, Internet TV is not just a "box" port link, nor is it simply watching TV online. It is essentially a change in the profit model.

The price war is a magic weapon for Internet companies to subvert the industry. The Internet has played the role of price killer since LeTV and Xiaomi entered the war. LeTV 39-inch S40 priced at 1999 yuan; millet TV 47-inch top version with 2999 yuan; TCL iQiyi 48-inch classic version of 2999 yuan ... ... now low-cost trend is still spreading, LeTV TV introduced at the beginning of the 70-inch TV M ax70 The price is 6999 yuan, and the X60 super TV will be reduced to 4,999 yuan.

Although the Internet is notoriously a money-burning company, it is definitely not a money-making business. Liu Buchen said that hardware sales are not the main source of profit for LeTV and Xiaomi, and its profit model is entirely based on the Internet. Liu Buchen said that LeTV once stated that at the very beginning, the profit model relied on services, and secondly advertising, and then expanded to a new model of multidimensional integration of hardware, platforms, services, applications, and advertisements, while traditional TV companies still rely on selling hardware to make money. According to its introduction, the current sales of traditional TV hardware account for 98% of the total industry, and only 2% of the profit channel comes from other services and applications.

In addition, the marketing strategy is also an important reason for both parties to open the gap. LeTV and Xiaomi are all masters of Internet marketing. In marketing, LeTV adopts the “CP2C” model, cuts marketing, channel costs, and unreasonable brand premiums. The entire process reaches the users, and Xiaomi consistently hunger and thirst for marketing. accurate.

Liu Buchen stated that the traditional enterprise's new profit model for Internet TV products has not yet been formed, but Le Shi, Xiao Mi's model certainly represents the future direction, and the market must pay for the price it must pay. This time is at least three years, and hardware sales may be three years later. Can be reduced to 70%.

Online and offline seamless marketing

How to have "Internet gene" has become a headache for all big brothers. Li Dongsheng, chairman of TCL, once stated that as an industry with a relatively high manufacturing threshold, the advantage of traditional home appliance companies lies in hardware manufacturing. Hardware is indeed a weakness of Internet companies, but hardware can be outsourced and technologies can be realized, but Internet thinking cannot be changed overnight. The core of the so-called Internet TV is still the transformation and upgrading of traditional TVs through Internet technology. The Internet is the key. From the above, it can be seen that the Internet thinking will not change and it will be difficult to see the current pattern.

In summary, the so-called Internet thinking is that the business model changes from “earning the money from the hardware” to “making money from the operations”, the product model goes to the integration of “hardware+software+services”, and the marketing model “customer service” to the “users” Service "change.

Liu Buchen believes that the transition from traditional TV to Internet TV should start from three levels. First, at the product level, product features should be implemented intelligently to highlight the user experience; second, how the Internet should be closely integrated with physical stores; and third, the Internet of the enterprise. The formation of consciousness, managers must change from the ideology and organization, and formulate new organizations and systems suitable for the era of the Internet.

From the point of view of marketing strategy, Liu Buchen stated that traditional enterprises must not only contact e-commerce, but also play their innate advantages. Online e-commerce and platform e-commerce can be operated on line, and sales channels can be expanded offline. Stores, chain stores, and small and medium-sized distributors need to form in-depth coverage of online and offline seamless coverage.