Sina Technologies Zhang Jun
Behind the naming of products, there are considerations of glory avoiding direct conflicting with traditional TV companies, as well as the intention of trying to open up new growth space.
Television companies are equally complex. There are millet and millet before.One plusetc.Mobile phoneWhen manufacturers enter the market, they will not give up their original market share, but expect Huawei and Glory to bring new ways to play beyond the price war for the TV industry.
TV industry meets growth bottleneck
Since 1958, the first TV set in China was successfully manufactured. In less than 30 years, China's TV output surpassed Japan in 1987 and became the largest TV producer in the world.
In 1989, Changhong lowered the price of its products by 350 yuan, which triggered the first large-scale price war in the domestic television industry, and further brought television into ordinary people's homes. However, reviewing the development history of China's television industry, price war has always been a lingering shadow.
With the advantage of price, domestic TV companies gradually dominate the Chinese market monopolized by international brands in the past. However, this has also brought a series of sequelae, China's television industry once fell into a large area of losses. Driven by the growth of household appliances in the countryside and smart TV, China's TV sales exceeded 50 million units for the first time in 2016, but soon ushered in two consecutive years of market downturn in 2017 and 2018.
According to Zhongyikang Tui's total data, the retail sales of color TV in China fell by 4.2% and 13.6% from January to May 2019. From January to May, the cumulative average market price is only 2986 yuan, which is less than 3000 yuan. Oviyun also expects that the retail sales of color TV in China will be 46.96 million units in 2019, down by 1.6% and 136.9 billion yuan, down by 8.1% over the same period.
In fact, this can be compared with the smartphone industry in China. Data show that the average switching period of Chinese users on flagship aircraft has been extended from 18 months to 27 months. Compared with mobile phones, TV switching cycles are longer and increments are more limited.
At the same time, because smart phones, tablets and other smart terminals occupy users for a long time, the frequency of television use is also declining. Data show that the average daily power-on rate of TV has dropped from 70% three years ago to 30%. Consumers over 40 years of age have become the mainstream of TV viewers.
What is more criticized is innovation. Liu Zuohu, CEO of Yijia, said in announcing his entry into TV that there are four main Internet scenarios in users'lives: mobile, home, car and office. As a very important scenario in life, home internet intelligent experience is still at a very early stage, lacking the sense of science and technology, and has not seamlessly docked with several other major life scenarios.
Zhao Ming, President of Glory, also believes that the R&D investment in TV industry is seriously inadequate at present. "After entering this industry, I found that R&D investment is even less than I expected." Zhao Ming said, "The R&D investment of the glorious single model is even greater than that of a company in the whole TV category."
With the introduction of 5G and the outbreak of IoT, smart home scenario may also be a new growth opportunity for the TV industry.
Huawei's Performance Pressure
In addition to the current situation of the television industry, mobile phone manufacturers are also facing their own difficulties.
According to the data of China Institute of Communications and Communications, smartphone shipments in China have declined year-on-year for two consecutive years in 2017 and 2018. In the first half of 2019, China shipped 178 million smartphones, down 4.3% year on year.
Although mobile phone manufacturers are looking forward to a new round of growth of 5G, at present, the status of network laying this year is still in its infancy, and 5G mobile phone is still in its infancy. Next year or even the next year, 5G mobile phones will be popular on a large scale.
For Huawei, the situation is even more grim.
According to Huawei's annual report for 2018, the sales revenue of operators was 294 billion yuan, down 1.3% year-on-year; the proportion of consumers'business in total revenue in 2018 had reached 48.4%, surpassing operators' business for the first time and becoming Huawei's largest revenue source.
On the one hand, Huawei is seeking new business growth points, such as the intelligent vehicle solution BU, which was just established in June this year, in the hope of gaining a share in the upgrading of traditional cars to smart cars; on the other hand, Huawei is also increasing its investment in consumer business.
After the announcement of the annual report in 2018, Ren Zhengfei's speech at the Consumer Business Oath Conference was exposed. He hopes Huawei's consumer business will reach a sales revenue target of $150 billion in 2023, while the whole Huawei Group will be between $25 billion and $300 billion.
Yu Chengdong once said frankly, "Ren always raises the goal so high that he feels he can't jump up." On the one hand, Yu Chengdong continued to strengthen Huawei's mobile phone business. He set a target of 250 million smartphones shipped in 2019 and 300 million smartphones in 2020. At the same time, he also increased his investment in IoT. His target is to generate one third of the $150 billion revenue in 2023, or $50 billion, from non-mobile products.
Huawei had previously proposed a full-scene strategy for 18 N, and during this year's MWC conference, he Gang, president of Huawei's consumer line, unveiled Huawei's full-scene strategy for the 5G era. It is worth noting that television has become part of the eight categories for the first time.
From eight categories, after mobile phones, Huawei has developed successively on PC and tablet, and is becoming the growth point of consumer business. Television is undoubtedly the next major potential growth business.
Where do traditional TV manufacturers go?
Although Glory has named the product Smart Screen, it is still unavoidable for some TV companies to be vigilant.
Coincidentally or intentionally, on the eve of the glory announcement that a smart screen will be launched,HisenseIt has released what it calls the world's first overlapping screen TV, and Millet TV has joined hands with TCL SCBC to celebrate its second anniversary of cooperation, saying that in the past two years, the volume of production of Millet TV and TCL SCBC has reached 7 million units. All of these are quite muscular.
In fact, when Lexin and Xiaomi entered the TV industry, TV companies have already started the road of transformation.
In 2013, millet, which is firmly established in the mobile phone market, announced the launch of smart TV products. In the same year, Skyworth launched the cool TV brand, Kangjia launched the KKTV brand, Hisense launched the VIDAA brand, and TCL established the Internet TV brand Thunderbird Technology by 2017.
In the face of the wave of 5G and IoT, TV companies have once again begun to change.
In Zhao Ming's plan, Glory positioned the smart screen as a dual center of smart life with mobile phones. Zhao Ming said that the smart screen should become the family's emotional center: audio-visual entertainment center, information sharing center, control management center and multi-device interaction center.
After the previous wave of smart speakers boom, the industry seems to have gradually reached a consensus that television may be the most promising home intelligence control center. "It's hard to imagine a family surrounded by a smart speaker. TV seems to be more suitable for this situation." Zhao Ming said.
This is actually the transformation thinking of household appliances enterprises.
Taking TCL as an example, the TCL intelligent terminal service group was established at the beginning of this year, and the intelligent terminal system architecture based on AI × IoT was established. According to the plan, the future products of the TCL intelligent terminal business group will range from home appliances to personal ecological products, to pan-intelligent devices, and to intelligent solutions.
Chang Dong, Co-Vice President of Kangjia Group, also said during this year's AWE that in 2019 Kangjia will build a TV-centered family IoT control around the multi-dimensional vertical layout of AI, 5G and 8K.
It also means that Millet, Yijia, Huawei and Glory, these mobile phone manufacturers, enter the TV industry, not only to compete positively with TV companies in the TV category, but also to compete in the family IoT entrance and ecology.
Interests have always been complex, not only competition, but also cooperation and reference between the two camps.
Before entering the TV industry, Huawei had already provided Haise TV chips and software processing solutions for TV companies. According to Zhao Ming's description, the goal of Glory TV is not to kill the Red Sea market into a sea of blood, but to make the industry revitalized with technology and innovation, and to give the industry the whole design and innovation experience of the smart screen.
A Skyworth executive commented in his circle of friends that Huawei's entry into the television industry is different from the low-cost disruptors and destroyers; Huawei's entry is bound to activate the industry and make the competition develop in the direction of benign brand and technology competition. "Skyworth opened his arms and welcomed high-quality catfish Huawei," he said.
Huawei vs. millet?
Some analysts believe that Huawei, Glory and traditional TV companies still have room to cooperate in chip, software, IoT ecology and so on. Therefore, the number one competitor of entering TV is millet.
Millet has really developed rapidly since it was introduced into TV. At home, it has repeatedly declared itself the highest-volume TV brand in the Chinese market in a single quarter. At the beginning of 2019, Li Xiaoshuang, General Manager of Millet Television Department, even set the goal of hitting the first place in China in the whole year. At the same time, Millet also accelerated its expansion in overseas markets such as India and Russia, trying to replicate the successful experience of Millet Mobile Phone overseas.
But Huawei's glory strategy is different from Xiaomi's, which has been demonstrated in the mobile phone business.
Millet still uses the strategy of high performance-price ratio on TV, and with the help of millet online channels and its own layout of offline stores, it can make small profits and sell more money; Huawei's strategy of glory will undoubtedly continue the technical line.
Television chips and software processing solutions are Huawei's own technological accumulation in the television industry. At the same time, whether the smart screen will use Huawei's self-developed Hongmeng system will also become a big concern.
The Glorious Official Xuanzhi Wisdom Screen will be released in early August, and Huawei will hold a global developer conference in early August. It is rumored that Hongmeng system will probably appear at the conference, so the smart screen with Hongmeng system will also become a big selling point. Huawei has been preparing for the ecology of smart screen. Glory has announced the "Yaoxing Star Plan" for smart screen developers, which encourages and supports excellent developers. At that time, Huawei will successfully launch applications in the smart screen application market. Huawei will not participate in the division, and 100% of them belong to developers.
In addition to cost-effective, millet has also established its own threshold in family IoT ecology. Millet has entered many IoT categories, even extending its antennae toWashing machineAndAir conditionerAnd so on. At present, millet TV has the functions of controlling AIoT electrical appliances, displaying intelligent device notification, and interacting with far-field voice. The home intelligent control center has begun to take shape.
Whether Huawei and Glory can make a comeback in the field of television by relying on technological routes is still unknown. But it can be predicted that after mobile phones, tablets, PCs and TV, Huawei Glory and Millet will meet in more fields.