Samsung pushes cheap TV sets to pressure Chinese brands

In order to expand the market size, Samsung, the world's largest TV maker, decided to launch a cheap TV. This is not good news for local Chinese companies that have been winning by low prices. Although Samsung does not specify the time and volume of distribution in the Chinese market, it will take some time for the channel to be laid. It is not known whether Chinese companies can seize the opportunity to come up with solutions.

Kim Hyun-suk, executive vice president of the Samsung Display Division, said: "As low-end TV demand increases, we have been preparing for the launch of cheap TVs, and we are also working hard to optimize production costs and reduce retail prices. Cheap TV sets will Sell ​​in one or two months."

In fact, in recent months, Samsung has launched a number of flat-panel TVs at local retail stores in South Korea, which are 40% cheaper than other products.

The industry generally believes that the Chinese market will become the main destination for its low-cost televisions. This has a great relationship with China's 34th-level market that has gradually become the main force for color TV sales. Previously, the "China White Paper Consumer Market Development White Paper 2011-2012" published by the China Electronic Chamber of Commerce pointed out that the domestic primary and secondary market sales accounted for 55% of the total sales, an increase of only 4.5% year-on-year, and TV companies have been regarded as the main battlefield. TV sales in first-tier cities such as Beijing, Guangzhou and Shenzhen began to decline, and this year saw negative growth for the first time. Sales volume in the 3rd and 4th tiers, which accounted for 45% of sales, rose by 17.5% year-on-year. The industry generally believes that the three or four-tier market will become the main driving force for the color TV industry growth this year. In this trend, foreign-funded enterprises are naturally reluctant to give up opportunities.

Compared with Chinese companies, Samsung has more brand advantages. According to industry insiders, consumers are paying more and more attention to the brand. Samsung's development speed in recent years has made its brand deeply rooted in people's minds, which is unmatched by domestic companies. Moreover, Samsung has an upstream industrial chain of panels, chips, etc., which can significantly reduce the production cost of the whole machine, which makes Samsung more competitive in the 3rd and 4th markets. "It is inevitable that Chinese manufacturers will be pulled into a price war, and gross profit cannot be guaranteed."

However, for Samsung, the channel is its biggest weakness. From the record of home appliances to the countryside in recent years, it can be seen that the expansion of foreign brands in the markets of the third and fourth levels is not yet smooth. In fact, as early as the beginning of 2010, Sony, the Japanese color TV giant, tried a low-price strategy in the Chinese market and launched a pro-people product. However, due to the small number of channels, the effect was not obvious.