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Domestic color TV market early winter sales fell by 12.9% year-on-year in the third quarter
In the first three quarters of 2017, the Chinese TV market faced a challenging period due to rising panel prices and declining consumer demand. According to the "2017 China TV Market Summary Report for the Third Quarter," the color TV market experienced its worst quarter in history. Retail sales volume dropped by 12.9% year-on-year to 10.41 million units, while the sales area fell by 7.3% to 6.89 million square meters. Despite the overall decline, the industry saw a shift toward higher-end products. Large-screen TVs (55 inches and above) and 4K ultra-high-definition models became increasingly popular among consumers.
Industry experts attribute the drop in market size to increased panel costs and the fading of the internet-driven growth trend. In response, major brands like Xiaomi, Philips, and Sharp announced plans to boost sales in the fourth quarter through promotions such as "Double 12" and by launching high-end, smart TV models to meet evolving consumer preferences.
The domestic market continued to shrink throughout the year. By the end of September, retail sales had declined by 9.2%. Internet brands like LeTV and Storm also saw their market shares fall significantly. The average price of TVs rose sharply, reaching a peak of over 70 yuan in September, with a 16.3% year-on-year increase in the third quarter. This price hike contributed to a decrease in sales volume, particularly for mid-range models.
While traditional brands managed to maintain stable growth, many internet-based companies struggled. For example, LeTV reported a 37.64% drop in revenue and a net loss of 282 million yuan in the first half of the year. Storm TV's shipments fell from over 1 million units in 2016 to 500,000 in 2017, reflecting the tough environment.
Interestingly, foreign brands like Sharp and Sony performed well despite the downturn. Sharp, after being acquired by Foxconn, saw a significant turnaround, with a 34.7 billion yen profit in the April-September period. Its strong performance in the Chinese market was a key driver. Sony also saw impressive results, with a 22.12% increase in revenue and a 2602.44% jump in profit. Both brands focused on high-end markets, leveraging advanced technologies like OLED and smart features to attract consumers.
In the face of challenges, the industry is shifting toward premium products. Large-screen TVs, especially 55-inch and 65-inch models, saw the fastest growth, signaling a potential turning point for the sector. High-end TVs priced above 10,000 yuan saw a 2.1% increase in sales, while 65-inch models maintained steady growth despite price hikes.
Industry analysts believe that the future of the TV market lies in innovation, with a focus on display technology, design, and smart features. Sharp is expanding its product range and launching 8K TVs globally, while Philips is investing in voice recognition and intelligent user experiences.
Looking ahead, the fourth quarter offers hope. With easing panel prices and upcoming promotional events like "Double 11" and "Double 12," companies are optimistic about recovering lost ground. Xiaomi, for instance, reduced the price of its 32-inch smart TV to just 999 yuan, marking a new era of affordable smart TVs. The company predicts a 204% sales increase in the final quarter of 2017.
Despite these positive signs, some experts caution that short-term promotions may not be enough to reverse long-term trends. However, the industry remains resilient, adapting to changing consumer needs and technological advancements. As the market evolves, the focus on high-end, innovative products is likely to define the next phase of growth.