Triple positive boost, the Chinese market OLED TV sales into the blowout era
Dec 12, 2019
With the acceleration of consumption upgrading and the increasing demand of consumers for TV products, OLED TV, which is recognized as the next generation of display technology in the industry, has officially entered the era of blowout. More and more consumers are choosing OLED TV as their first choice.
According to the sales data of OLED TV in China market this year, as the first home appliance store, the sales of OLED TV in Suning in the first half of the year increased by 74% year on year. During the period of JD 618, OLED TV was only sold for 10 hours, and the turnover exceeded the whole day of the same period last year. However, the turnover of high-end OLED TV increased by 300% year on year since the "opening day" of the recent JD 11.11 global good things Festival.
With the momentum of OLED, upstream suppliers, major TV manufacturers and terminal appliance stores have also begun to work together to help the market development of OLED. At the beginning of this year, Suning joined hands with many TV brands to launch the "OLED three super plan", and set up a sales target of 130000 OLED TVs in Suning platform in 2019 and 300000 in 2020. As the largest OLED panel manufacturer, Wu Zhanghao, vice president of LG display and director of TV business, predicted that China's OLED TV sales will reach 300000-400000 in 2019, and that China's OLED TV sales will reach more than 1 million in 2020; as the elder Skyworth of OLED camp, it launched a huge "OLED popularization storm" for the whole country, attracting consumers to buy through low price policy In fact, Chen longjiu, director of Skyworth's TV marketing department, set the flag of "this year, one million Chinese families will use OLED" at the "OLED times" media conference.
Behind it is the upgrading of the upstream OLED supply chain capability, the conformity of OLED technology advantages with user consumption upgrading needs, and the joint efforts of upstream and downstream manufacturers to jointly promote the implementation of OLED TV preferential policies.
I. user demand: OLED technology advantages meet the needs of user consumption upgrading
From the perspective of user demand, OLED TV shows a blowout momentum, which is the inevitable choice for user consumption upgrading. For the purchased products, price is no longer the most concerned problem of consumers, but more concerned about product quality performance. In the aspect of TV purchase, image quality performance, design aesthetic feeling, eye health protection, etc. have become the standard of consumers' purchase. OLED TV, which has the advantages of self illumination, high contrast, power saving, eye protection and other technical features, perfectly meets the highest requirements of users for TV products, and becomes the most recognized high-end TV products. According to AVC data, users' satisfaction with OLED TV is as high as 97%, and 94% of users are willing to recommend OLED TV.
Why does OLED TV have such obvious product advantages over traditional TV? This is mainly due to the OLED self illumination characteristics, so that compared with the LCD screen that needs to rely on the backlight for illumination, there will be no light leakage, the image quality is more clear, and the color is more real and full. With the arrival of 5g era, 4K and 8K Ultra HD content will gradually rise, OLED will become the best display device in 5g era.
In addition to black field performance, OLED TV also has obvious advantages in color gamut performance and visual angle. The NTSC standard color gamut of OLED is up to 110%, while LCD is generally only 70% - 90%; in visual angle, the brightness angle of view of LCD TV is generally 60 °, the chromaticity angle of view is 40 °, while OLED TV has a broader gamut performance and visual angle, even if viewing TV from side angle is not There will be color deviation, which will greatly improve the user's viewing experience.
In addition, OLED TV is also more eye protecting, which also benefits from the self luminous property of OLED TV. According to the data, the harmful blue light emission of OLED screen is 72% less than that of LCD TV. According to the comparison test of 13 electronic products (including 5 mobile phones, 4 tablet computers and 4 TV sets) conducted by China Consumer Association, OLED screen is more eye protecting than LCD screen. TUV, an authoritative German certification agency, has also proved that OLED TV has more advantages in eye health from four aspects of image quality, blue light, flicker and reflected light.
II. Panel supply promotion to promote the price of large size OLED panel
For OLED TV, the first reaction of users is super high-end and the consequent high price. Indeed, according to the data previously released by IHS Markit, as early as 2017, the market share of OLED TV has reached 51.3% in the high-end TV market above US $2500 (about RMB 15833). According to the actual market price, the average price of 55 inch OLED TV is more than 10000 yuan, and the average price of 65 inch OLED TV is more than 15000 yuan.
And this also makes OLED TV less "grounded". Wang Zhiguo, chairman and President of Shenzhen Skyworth RGB Electronics Co., Ltd., once said: "everyone knows that OLED is good, but the biggest disadvantage of OLED is that it is expensive, and there is no grounding in price.".
It can be said that Guicheng is the biggest obstacle for consumers to choose OLED TV. So why is OLED TV expensive? The core reason is that the capacity of large-scale OLED panel is insufficient, which makes large-scale OLED in short supply and high price, so it can only become the exclusive configuration of high-end flagship products.
Now, as the world's largest OLED TV panel supplier, LG display has invested in the construction of an 8.5 generation OLED panel production line in Guangzhou this year, with an initial capacity of 60000 pieces per month. With the capacity of 70000 pieces of glass substrates per month in its pozhou factory in South Korea, LG display OLED panel production capacity will increase to 3.8 million pieces this year. It is estimated that in 2021, the 8.5 generation OLED panel production line in Guangzhou will achieve 9 pieces per month With the production capacity of 10000 pieces, Wu Zhanghao, director of LG display TV business department, also said that with the mass production of the 8.5 generation production line in Guangzhou, LG display's global OLED shipments will reach 11 million pieces, realizing the full coverage of 4K products from 48 to 77 inches and 8K products from 65 inches, 77 inches and 88 inches. At that time, with the release of OLED panel supply, the cost price of OLED TV will be lowered, and OLED TV will become more and more popular More and more consumers can undertake the high-quality TV categories.
III. landing: upstream and downstream manufacturers jointly promote the price of OLED TV for the people
Under the favorable market environment of OLED, upstream panel merchants, major TV brands and terminal channel merchants all work together to boost the development of OLED and accelerate OLED TV to enter thousands of households.
From this year's multi form and large-scale market actions of major manufacturers, it can be seen that OLED is definitely the future trend. In April this year, Suning teamed up with LG, Hisense, Skyworth, Konka, Sony and other OLED camp brands to launch the "OLED three super plan", boosting the rapid development of OLED TV, bringing the OLED TV super experience and price ahead. For example, during the "national color TV contest", Suning released the fourth quarter estimated price of 55 inch OLED, which dropped below 7000 yuan, and 65 inch OLED, which dropped below 13000 yuan.
In May, Jingdong joined hands with seven leading brands in the color TV industry, including Skyworth, LG, Hisense, Philips, Konka, Sony, Changhong, to establish OLED alliance, open the official flagship store of OLED TV, and jointly promote the popularization of OLED TV.
In June, LG display, the upstream supply chain manufacturer, joined hands with Jingdong, Gome, Suning and other channel providers, as well as Skyworth, Changhong, Konka, Sony and other complete machine manufacturers to hold the "OLED big bang prairie fire" tour in 16 cities across the country to show the advantages of OLED TV, so as to realize the sinking of OLED TV user audience.
In July, Skyworth launched the "OLED popularity storm" and announced that the prices of 55 inch and 65 inch OLED TVs would be directly reduced from 4000 yuan and 5000 yuan to 7999 yuan and 15999 yuan, respectively.
At the same time, all OLED TV manufacturers have also launched various forms of profit giving activities in various activities in combination with Jingdong, Suning, Gome and other home appliance sales channels. During the double 11 event, all major TV manufacturers have launched profit giving activities in combination with Jingdong, Suning, Gome and other sales platforms, such as Jingdong kaimenhong, Suning 11.11 national carnival, to trigger the user's consumption of OLED TV Cost enthusiasm. Data shows that the turnover of high-end OLED TVs increased by 300% year-on-year in the first hour of the "opening day" of JD 11.11 global good things Festival.
It can be said that the downward price of OLED TV panel brought about by the increase of upstream supply chain capacity and various preferential profit giving activities offered by downstream TV manufacturers and channel providers have started to make OLED TV gradually show the characteristics of being friendly to the people in terms of price, which has also accelerated the release of accumulated OLED TV demand potential energy and made OLED TV more and more popular.
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