Korean Media: South Korean TVs Are Stagnant, Chinese TVs Are Rapidly Rising!

On March 11, the Korean media outlet "Today's Finance" published an article stating that Chinese TV manufacturers are exerting significant pressure on Samsung Electronics and LG Electronics in the global market. While South Korean TV companies are experiencing stagnant growth, Chinese companies are continuously expanding their market share. With the addition of high-end market strategies, competition in the global TV market is expected to intensify further.

Data released by the market research company Counterpoint Research shows that Samsung Electronics maintained a 16% share in the global TV market last year, while LG Electronics remained at 9%. In the face of a sluggish overall TV market, both companies could only barely maintain their shipment volumes.

Meanwhile, Chinese companies continue to maintain their growth momentum. TCL and Hisense both saw a one percentage point increase in market share, reaching 12% and 11%, respectively. TCL's shipment volume also increased by 9%. Adding Xiaomi (4%), the combined market share of Chinese TV manufacturers reached 27%, surpassing Samsung Electronics and LG Electronics (25%). This indicates that the strategy of Chinese companies, driven by price competitiveness and product line expansion, is yielding results.

TCL's expansion has been particularly rapid. Taking November of last year as an example, TCL's market share reached 16%, just one percentage point behind Samsung Electronics (17%). TCL's shipment volume increased by 22% within a year, which also led to a three percentage point increase in market share. This success stems from its strategy of focusing on price-sensitive emerging markets.

TCL recently expanded its influence by acquiring Sony's television and home audio business. TCL and Sony have established a joint venture, with each holding 51% and 49% of the shares, respectively. Sony will transfer its television business to this joint venture. The joint venture will retain the Sony brand and its premium brand BRAVIA.

By acquiring Sony's television business, TCL not only has the potential to expand its market share but also to address its structural weaknesses. Last year, Sony held a 2% share in the global television market. By absorbing Sony's share, TCL will further narrow the gap with Samsung Electronics. Market analysts predict that if this trend continues, TCL may rise to the top of global television shipment rankings as early as next year.

Although TCL has competitive pricing and production capabilities, it has long been considered to lack a premium image and brand reputation. However, by acquiring Sony's television business, TCL has addressed this issue. It is expected that competition in the high-end television market, where Samsung Electronics and LG Electronics have advantages, will become even more intense.

The competition in the Chinese TV market is also placing increasing pressure on the profitability of South Korean TV manufacturers. Samsung Electronics' display and home appliance divisions reported an operating loss of about 200 billion KRW last year. LG Electronics' television business division (MS) also recorded a loss of 750.9 billion KRW.

Original: toutiao.com/article/1859328007879680/

Statement: This article represents the views of the author.