China's color TV shipments hit record lows The intensifying Matthew effect may accelerate the elimination of second-tier brands

[Secret of the House]Recently, the Secret of the House noticed that Luotu Technology announced the 2023 China color TV market shipment report. Data shows that for the whole of 2023, the shipments of branded complete sets in the Chinese TV market will be 36.56 million units, a decrease of 8.4% year-on-year in 2022. The full-year market size fell below 37 million units, hitting a new low in the past decade. Among them, the fourth quarter fell by 20% year-on-year.

In recent years, the growth of the domestic color TV market has gradually slowed down, especially with the rise of emerging mobile devices, the color TV market has entered the “stock” market. With the emergence of China's color TV market shipment data, Zhaimi summarized the 2023 Several changes in China’s color TV market:

First, the market structure has intensified the Matthew Effect. Against the background of the sluggish market environment, the impact on leading brands seems not to be obvious. The annual shipment scale of the top 4 brands has increased from 5 million units in previous years to 6 million units. Judging from the data, in 2023, the total shipment volume of Hisense, Xiaomi, TCL, and Skyworth reached 28.89 million units, a slight decrease of 1.6% year-on-year; the market share increased significantly by 5.4 percentage points from last year, reaching 79.0%. Zhai Mi believes that the market share of the leading brands in the color TV market will further increase in the future, and the share of subsequent brands will continue to be eroded.

Second, at the brand level, Hisense may continue to occupy the “number one” position. From a brand perspective, the biggest change in the color TV market shipments in 2023 is that Hisense overtook Xiaomi and successfully reached the top spot. Let’s look at the data first. According to Luotu Technology data, Hisense surpassed Xiaomi to win the first place in China’s TV market shipments in 2023 with a scale of more than 8 million units, with a market share of 23%. It is also the only TV manufacturer. A brand with shipment volume exceeding 8 million units.

The secret of the house believes that Hisense’s ability to achieve overtake in shipments despite the sluggish market environment is inseparable from its in-depth insights into the color TV industry and consumer demand. Through its large-screen, high-definition, and multi-brand strategy, Perfectly covering consumer needs. And on the technical side, we have in-depth accumulation of various emerging display technologies such as ULED, laser display, MiniLED, MicroLED, OLED, etc., and we are also able to perfectly control image quality chips, 8K, etc.

It can be said that it is one of the few “all-round players” in the color TV industry. It is its continuous exploration on the technical side that allows it to meet the diverse needs of consumers and continue to grow despite the market downturn. It is Hisense's in-depth insights into technology, brand and consumer needs that enable it to take the lead in sensing market changes, thereby creating products that can impress consumers.

Third, sub-brands have become a key force in color TV shipments. Judging from the top brands in 2023, their success is inseparable from the help of its sub-brands. Hisense’s Vidda, TCL Thunderbird, Xiaomi’s Redmi and Skyworth’s Coukaa all provide indispensable support for brand shipments. With small help, Hisense Vidda shipped more than 2 million units throughout the year, which may be much higher than the shipments of some major brands.

It can also be seen from this data that the two-way interaction between the main brand and sub-brands has formed a strategy of “main brand upwards and new brands downwards” compatibility, achieving coverage of different price segments and consumer groups. In the future, the color TV industry may Brands without sub-brands may continue to be marginalized.

At a stage when the color TV market is not as competitive as existing products, the dominance of leading brands has further intensified, especially the market harvesting power of its sub-brands. For second-tier brands, competitive pressure will be further amplified. How will second-tier brands respond in the future? The “two-sided attack” of leading brands may become a major highlight of the color TV market in 2024. However, for now, in the context of the intensified Matthew Effect in the market, the chances of subsequent brands being able to “come back” are very slim.

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