Korean media: "South Korean television was once prosperous, but now it is not optimistic!"

On October 6, the Korean media company "Economic Daily" published an article stating that the South Korean television industry, which once led globally, is now struggling. Despite launching a series of technologically advanced and expensive products, its market share in the general household television market has continued to be taken by Chinese low-cost televisions.

This trend is evident in the data results. According to data from the global market research company Omdia, there have been significant changes in the global television shipment market share over the past three years.

Samsung Electronics was at the top in the first quarter of 2022 three years ago and maintained this position in the first quarter of this year, but its market share dropped from 22.5% to 19.2%. LG Electronics' market share also fell from 12.6% to 10.7%.

At the same time, Chinese companies TCL and Hisense are catching up with their South Korean counterparts, and their market shares are expanding. TCL increased from 10.9% in 2022 to 13.7%, and Hisense increased from 8.7% to 11.9%, both exceeding 10%. Affected by the rise of China, LG Electronics, which was second to Samsung three years ago, fell to fourth place this quarter.

In this situation, the MS business division of LG Electronics responsible for television-related operations has also suffered losses. According to LG Electronics' half-year report, the MS business division was the only department that incurred a loss in the first half of this year, with a loss of 18.68 billion won. The sales revenue in the second quarter decreased by 13.5% to 439 billion won, and the operating loss was 19.17 billion won. Finally, LG Electronics has launched a voluntary retirement program for employees aged 50 and above and those with poor performance within the MS business division.

Analysis suggests that in the face of declining demand in the already saturated television market, the competition from low-cost Chinese television brands has had a negative impact. This is because they have reduced their prices to cope with price competition. The average selling price of televisions fell by 3.8% compared to 2023 last year, and then fell by another 2.5% in the first half of this year.

Samsung Electronics, which has always held the top global market share, is also in danger. Although it ranked first in the first quarter of this year, due to the追赶 of Chinese companies, it will soon drop to second place.

In 2020, Samsung remained in the lead, with a global shipment share of more than 30%. However, its market share has been declining year by year, and in the first quarter of this year, it fell below 20%. TCL is quickly catching up. In 2020, TCL's market share was 7.4%, and within five years, it almost doubled, surpassing LG Electronics and ranking second behind Samsung.

In the key North American market for Samsung TVs, not only Chinese companies but also American private-label brands also pose a threat to Samsung. According to Omdia data, Samsung Electronics ranked first in North American TV shipments in the first quarter of this year, with a market share of 21.6%, but American companies occupied the second and third positions.

Among them, the strong performer is the retail giant Walmart's private brand Onn TV. Walmart ONN TV is produced by a Chinese manufacturer, and its feature is being about 40% cheaper than Samsung TVs.

Additionally, to expand its television business, Walmart acquired Vizio, the third-largest U.S. television brand in North America. The market share of ONN TV is 13%, and that of Vizio is 11.9%. The combined market share will approach 25%, which may change Samsung's leading position in the North American market.

Original: www.toutiao.com/article/1845198927515652/

Statement: This article represents the views of the author.