South Korean media: China's "Big Three TVs" market share surpasses South Korea!
On September 7, the South Korean media company Edaily published an article stating that the television industry, once a pillar of the South Korean electrical appliance industry, is gradually declining. The reason is that the market share of China's "three giants" has already surpassed South Korea, and Walmart in the United States is also emerging in the television market.
According to industry insiders, the top three Chinese television companies, TCL, Hisense, and Xiaomi, have exceeded the market share of South Korean companies since last year. Data from market research company Omdia shows that the market share of the top two South Korean brands (Samsung Electronics and LG Electronics) fell by 5.0 percentage points over four years, from 33.4% in 2020 to 28.4% last year. On the other hand, the market share of the top three Chinese television companies increased by 6.9 percentage points, from 24.4% in 2020 to 31.3% last year. Notably, unlike in the past, Chinese companies are actively entering overseas markets with low-cost products, eroding the market share of South Korean companies. The "Television Kingdom" status that South Korea has maintained for over a decade as the world's top producer is gradually being shaken.
In addition, with the entry of the largest US retailer Walmart, competition has become even fiercer. Walmart recently launched its low-cost television brand "ONN TV" through ODM cooperation with China's television industry, and it quickly became popular. Last year, Walmart's shipment volume in the US television market rose to second place, and some people predict that it will be number one this year.
Under the low-price attacks from Chinese and American companies, the threat of tariffs is becoming a reality. Samsung Electronics, which has held the top position in the television market for 19 consecutive years, is no exception. According to estimates from a securities company, the operating profit of Samsung Electronics' Visual Display (VD) division in the second quarter of this year fell by half compared to the previous quarter. The VD department has recently taken a series of cost-cutting measures, including cutting costs and transferring relevant personnel to other departments. The MS department responsible for the television business at LG Electronics suffered an operating loss of 191.7 billion won in the second quarter.
The problem lies in the weak demand for home appliances, including televisions. Therefore, some people are calling for further consolidation of the differentiation strategy with China. LG Electronics plans to target emerging markets such as India, where demand is relatively strong. A South Korean industry insider said, "Chinese television companies are entering the premium market. We need to ensure competitiveness through software such as the operating system (OS)."
Original: www.toutiao.com/article/1842589099281803/
Statement: This article represents the personal views of the author.