CCID Consulting: Sales Revenues from Flat-Panel TV Sets in China Drops 7.8% in 2007Q3

CCID Consulting: Sales Revenues from Flat-Panel TV Sets in China Drops 7.8% in 2007Q3

BEIJING, Nov. 20 /Xinhua-PRNewswire/ -- CCID Consulting, China's leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong (Hong Kong Stock Exchange: HK08235), recently released its article on the 7.8% decrease in sales revenues experienced by China's flat-panel TV sets in 2007Q3.

CCID Consulting released its 2007Q3 China's Flat-Panel TV Market Research Report, which lays the foundation for enterprises to establish competitive strategies on products, services and technologies through studying the present status and development trend of the market.

The sales volume and sales value of flat-panel TVs dropped in the 3rd Quarter of 2007

According to the report, 1.4635 million flat-panel TV sets were sold in China in the 3rd Quarter of 2007, down 6.3% over that in the 2nd quarter, and the sales value reached RMB 12.24 billion, down 7.8% over that in the 2nd quarter. The accumulative total sales volume of flat-panel TVs in China in the first three quarters of 2007 was 4.7721 million and the total sales value reached RMB 40.86 billion.

In the 3rd Quarter, the sales of flat-panel TVs presented the well-marked seasonal feature, namely the sales of flat-panel TVs entered the slack season and the sales volume and sales value dropped as compared with that in the 2nd quarter. To be concrete, the sales volume decreased owing to the following reasons: first, the 3rd Quarter (July, August and September) was just prior to the Golden Week (National Day Holiday), thus the consumers mostly waited for sales promotions during the holiday. Second, the manufacturers were making preparations for the coming holiday and thus launched few sales promotions. Meanwhile, the falling selling price also resulted in the falling sales value.

Figure 1: Sales Volume of Flat-panel TVs in China in the 3rd Quarter of 2007 and Growth Rate

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Source: CCID Consulting; Oct. 2007

Figure 2: Sales Value of Flat-panel TVs in China in the 3rd Quarter of 2007 and Growth Rate

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Source: CCID Consulting; Oct. 2007

BRAND STRUCTURE CHANGES

1. LCD TV Brand Structure Changes

On the whole, consumers were more rational when purchasing flat-panel TVs in the 3rd Quarter and they began to evaluate product value from more angles, such as function, resolution and definition, rather than just considering price. In the second place, before the "National Day" price war, the price of major brands was kept stable and the competition among brands was mainly over the market cultivation and accumulation in the prior stage.

According to the report released by CCID Consulting, the Top 3 in China's LCD TV market in the 3rd Quarter of 2007 were Hisense, Samsung and Skyworth, as to the sales volume, their market share was 10.4%, 8.93% and 8.54%, respectively. Hisense was the first owing to its powerful brand operation and refined management, and Skyworth took third place thanks in part to its powerful R&D strength.

The market share of the Top 10 reached 75.16% of the LCD TV market as to the sales volume. Of the Top 10, 6 are domestic brands and 4 were foreign brands.

Figure 3: Market Share of the Top 10 Enterprises in China's LCD TV Market in 3rd Quarter of 2007

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Source: CCID Consulting; Oct. 2007

2. PDP TV Brand Structure Changes

According to the data provided by CCID Consulting, the Top 5 in China's PDP TV market in the 3rd Quarter of 2007 were Hitachi, Panasonic, Hisense, Changhong and Samsung, in regards to sales volume. The market share of Hitachi and Panasonic dropped from 67% in the 2nd quarter to 64% in the 3rd quarter. Hisense developed fast and rose to third from fourth place in the 2nd quarter.

In this quarter, Changhong, Hisense and Haier released 32" PDP TVs, which were well sold owing to the superior performance/price ratio. Although it may not make a difference on the overall pattern, it does drive the sales of brand PDP TVs.

Figure 4: Market Share of the Top 5 Enterprises in China's PDP TV Market in the 3rd Quarter of 2007

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Source: CCID Consulting; Oct. 2007

PRODUCT STRUCTURE CHANGES

1. LCD TVs Kept on Developing Towards Larger Screen; 46" and 47" Products Enjoyed Faster Growth

According to the data provided by CCID Consulting, 40" and larger products took 36.8% of China's LCD TV market in the 3rd quarter, while LCD TVs continued developing towards larger screens.

On one hand, it is due to the supply of panels. In 2007, the demand for small LCD panels exceeded the supply, so the productive capacity could not meet the demand, and thus the panel price rose. Meanwhile, the price of 40", 42" and larger panels dropped, so the large LCD TVs could bring along higher profits and the productive capacity increased correspondingly. On the other hand, the consumers demanded even larger LCD TVs, which drove the sales of large LCD TVs.

Figure 5: Market Share of LCD TV Products by Size in China in the 3rd Quarter of 2007

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Source: CCID Consulting; Oct. 2007

2. Products Larger Than 50" Become the Mainstream of the PDP TV Market

On the whole, the PDP TV developed stably in the 3rd quarter of 2007. As to the product size, under the impact of LCD TVs of the same size, the market share of 42" PDP TVs dropped slightly, while 50" and larger products had a rising share, but the growth was moderate owing to the influence of 46" and 47" LCD TVs. 50" and 55" PDP TV sets were becoming the mainstream in the PDP TV market.

Figure 6: Market Share of PDP TV Products by Size in China in the 3rd Quarter of 2007

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Source: CCID Consulting; Oct. 2007

About CCID Consulting

CCID Consulting Co., Ltd. (hereinafter known as "CCID Consulting" or "CCID"), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: HK08235), is directly affiliated to the China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has set up branch offices in Shanghai, Guangzhou, Shenzhen, and Harbin, with over 300 professional consultants and industry experts. The company's business covers over 200 large and medium-sized cities in China. Apart from home market development, CCID Consulting establishes international cooperation links across the United States, the Asia-Pacific region and Europe with agents in the U.S., Japan, South Korea, Australia, Singapore, Italy and Russia, with the aim of going global.

Based on four major competitive areas: powerful data channels, industrial resources, intense knowledge and a deep understanding of information technology, CCID Consulting provides customers with consulting, research and IT outsourcing services covering strategic planning, IT applications, marketing strategies, human resources and information technology outsourcing. Customers range from industrial IT users, telecommunications companies, energy companies, finance companies, and automobile companies, to government departments at all levels and diversified industrial parks. CCID Consulting commits itself to be the number 1 consultant in strategic consulting, the number 1 brand for strategic consultancy, the number 1 advisor for enterprise management and the number 1 consultant for government decision-making.

For more information, please contact:

Cynthia Liu
Coordinating Manager
CCID Consulting Co., Ltd.
Tel: +86-10-8855-9080
Email: liuyan@ccidconsulting.com

Source: CCID Consulting Co., Ltd.

CONTACT: Cynthia Liu, Coordinating Manager of CCID Consulting Co., Ltd.,
+86-10-8855-9080, or liuyan@ccidconsulting.com

Web Site:

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