CCID Consulting: Sales Volume of Video MP3 Players in China Reached 5.0061 Million Yuan and Sales Revenue was 2.39 Billion Yuan in the First Three Quarters of 2007

CCID Consulting: Sales Volume of Video MP3 Players in China Reached 5.0061 Million Yuan and Sales Revenue was 2.39 Billion Yuan in the First Three Quarters of 2007

BEIJING, Nov. 14 /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 video MP3 market in China.

Research from the Research Report on China's Video MP3 Market in the 3rd Quarter of 2007 shows that, in the 3rd quarter of 2007, video MP3 sales entered a slack season and the sales volume dropped by 12.06 percent as compared with the same period of the previous year.

The video MP3 market suffered falling sales volume and value

According to the report released by CCID Consulting, in the 3rd quarter of 2007, the gross sales volume of video MP3 players in China was 1.6148million, down by 12.06% as compared with the same period of the previous year. Sales value reached RMB 791 million Yuan, down by 9.08% as compared with the same period of the previous year. The gross sales of flat panel TV sets in China in the first three quarters of 2007 reached 5.0061 million and the sales value was 2.39 billion Yuan.

Figure 1 Sales of video MP3 players in the 20073Q

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Source: CCID Consulting; Oct. 2007

Figure 2 Sales value and growth rate of video MP3 in China in 20073Q

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Source: CCID Consulting; Oct. 2007

As to the sales performance in each month of the third quarter, sales reached a peak in July with sales volume reaching 583,400. August came in second with a sales volume reaching 527,000, 56,400 less than July's total volume. The sales volume dropped to 504,300 in September, the least sales for the third quarter. Manufacturers strengthened sales promotion in July and August (the summer vocation) and the sales volume was visibly higher. But the relative link ratio of July and August incurred negative growth, showing that the summer vacation sales promotion is playing a less important role for the MP3 market. In September, manufacturers prepared for the "Golden Week" (the National Day Holiday), but failed to pay due attention to the sales promotion, thus the sales volume dropped to the floor.

Figure 3 Sales of video MP3 players in China in 20073Q (by month)

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Source: CCID Consulting; Oct. 2007

Market concentration dissipated to some degree with domestic brands dominating the market

As to China's video MP3 market performance in the 3rd quarter of 2007, the Top 5 brands got 37.82% of the market, down by 6.08% over the previous quarter and the Top 5 brands (by the sales volume) were all domestic brands, namely NEWMAN, MEIZU, DEC ZHONGHENG, Changhong Zarva and Unibit. NEWMAN, MEIZU and Changhong Zarva all have unique styles, while AIGO, which established its position in China's MP3 market the earliest, seems to lack the ability to realize its ambition in the face of an intensified market.

Figure 4 Market share of China's Top 5 video MP3 players in 2007Q3

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Source: CCID Consulting; Oct. 2007

Despite its leading sales volume of video MP3s, NEWMAN saw a falling sales volume in the third quarter as compared with the second quarter. It was caused by the falling product quality and profitability. Further improvement is expected in order to win the future market.

The success of MEIZU comes from the successful generalization of its classic model Mini Player and the Music Card released in March 2007. In addition, MEIZU forum has more registered users with a solid foundation of interaction between users and product developers, which can lead to popularity and bigger sales volume.

Through a series of marketing activities, Changhong Zarva has deepened its recreation route and had an improved market performance in China's video MP3 market in the 3rd quarter of 2007.

2.4" screens comprised more than 30% of all products as more screen sizes were released

As to the screen size of video MP3 players in China in the 3rd quarter of 2007, the sales share of 2.4" products reached 32.1%. The 2.0" products took a share of 19.4%. The total share of both topped 50%. It is seen that the 2.4" and 2.0" products are the mainstream products in China's video MP3 market now.

In the future, due to the entrance of more new manufacturers and consumer demand for larger screens and lowered screen cost, more products with screens bigger than 2.0" will be released.

Figure 5 Sales of video MP3 players in the 3rd quarter of 2007 by screen size

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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: http://www.ccidconsulting.com/upload/12345.jpg

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