CCID Consulting Analyzes China's Flat Panel TV Market in 2008Q3

CCID Consulting Analyzes China's Flat Panel TV Market in 2008Q3

BEIJING, Dec. 5 /PRNewswire-Asia/ -- 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 China's flat panel TV market in 2008Q3.

Based on long-term research on China's flat panel TV market, CCID Consulting launches China's Flat Panel TV Market Report in 2008Q3. Based on the research on market situation and development trend, this report provides reliable base for enterprises' strategies on products, services and technologies.

CCID Consulting's data shows that the sales volume of China's flat panel TV in 2008Q3 reached 3.082 million sets, up 110.6% year-on-year. Q3 is a traditional sales off-season, but in 2008Q3, the market enjoyed favorable growth.

Figure 1: Sales Volume and Growth of China's Flat Panel TV Market in 2008Q3

http://www.ccidconsulting.com/upload/14012.jpg

Source: CCID Consulting, Nov.2008

In 2008Q3, China's flat panel TV market had rapid development, there are three major reasons: firstly, upstream LCD panel's supply exceeds demand, resulting in price cuts, which stimulated terminal sale. Secondly, the Olympic Games enlarged the market size by driving the transition from traditional TV to high definition, flat panel TV in many households around China, pushing up sales, especially for large size flat panel TV. Thirdly, the government's initiative in "bringing household electrical appliances to the countryside" drove up demand in the countryside, with color TV being the major products in this scheme. Government subsidies greatly stimulated country markets' demand.

Amid rapid changes in the external market environment, CCID Consulting forecasts that in 2008Q4, development trends for China's flat panel TV market will show the following characteristics:

Panel prices continue to fall with price war inevitable

In 2008, there was a surplus for upstream LCD TV panel, reflected in falling prices. Major panel manufacturers reduced production, such as AU Optronics Corp., Chi Mei Corporation, CPTF and LG Display, but was unable to curb the price fall. Currently, 32" LCD panel's average price has broken through $300. 40" and above 40" HD LCD panel's average price has fallen about $10.

LCD TV panel's price accounts for 60%-70% of LCD TV. Panel's price drop will drive LCD TV's price drop. Flat panel TV's price war is inevitable.

Changes in brand structure as domestic brands become more competitive

With changes in the economic environment, the competition pattern in China's flat panel TV market will change. The scheme "Bringing household electrical appliances to the countryside" stimulates country market's growth, with China's domestic brands the major force behind the growth. The surplus in upstream production has a great impact on foreign brands. China's brands pay more attention to value competition, and by actively carry through industrial convergence, making breakthroughs in products and marketing, their competitiveness against foreign brands has improved significantly.

CCID Consulting forecasts that China's domestic brands will have advantage in a new round of competition.

Affected by global financial crisis, market growth slows down

Global financial crisis has huge impact on the global economy, and the effect is starting to float in China. Flat panel TV's export's growth has been restricted since October, a shrinking capital market is holding off investment, hinting to a gloom prospect, and lower consumer confidence. Urban household expenditure has reduced, some small and medium manufacturing enterprises have gone bankrupt, and unemployment rate is rising. Major manufacturers adjust market expectation. All these factors point to a slow down of China's flat panel TV market in 2008Q4.

About CCID Consulting

CCID Consulting Co., Ltd. (hereinafter known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: 8235.HK), is directly affiliated with China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen, Wuhan and Chengdu, with over 300 professional consultants after many years of development. The company's business scope has covered over 200 large and medium-sized cities in China.

Based on major areas of competitiveness: industrial resources, information technology and data channels, CCID Consulting provides customers with public policy establishment, industry competitiveness upgrading, development strategy and planning, marketing strategy and research, HR management, IT programming and management. CCID Consulting's customers range from industrial users in electronics, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks. CCID Consulting commits itself to becoming the No. 1 advisor for enterprise management, the No. 1 consultancy for government decisions and the No. 1 brand for informatization consulting.

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

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