Once the domestic family attaches great importance to the "four major pieces", of which television, especially one of the things necessary for some families to get married, and the former well-known domestic TV brand Changhong seems to have gradually disappeared in people's vision, what is the problem with Changhong?
As one of the top 5 domestic TV brands in the past, Changhong once controlled most of the domestic TV market with Skyworth, TCL, Konka and Hisense, but with the change of domestic life and consumption concepts, the TV product gradually became less in demand.
Nowadays, in order to save space at home, many families usually buy a projector, as long as they are connected to the Internet, they can project and watch programs on a white wall.
This type of projector is not large, almost does not take up any space, than take up a large area of LCD TV, projector is more favored by most families.
Of course, consumers have more purchase options on the one hand, and the most important thing is that there are problems with Changhong's own development.
Since 2016, Changhong's net profit has been declining, and even until 2020, the total profit is only 1.536 billion, and the total loss in 2015 has reached 1.974 billion, which means that the amount of Changhong's 1-year loss has exceeded the total profit of 4 years.
In the third quarter of 2021, Changhong's product sales growth rate became -40.47%, and in the same year, Changhong's TV business has lost its status as a main business product, and its revenue is even not as high as that of the air conditioner and refrigerator business.
By the end of 2021, Changhong's TV product sales accounted for less than 20%, and air conditioners and refrigerators have exceeded 30%, which shows that Changhong's own TV business has experienced a serious recession.
Once Changhong, in 1995, when the domestic consumption level was still very low, it achieved a good result of annual sales of 10 million units, and it was listed 2 years later, and it developed into a giant enterprise with a market value of 65 billion yuan in only 1 year.
At that time, Changhong's annual revenue reached a maximum of 15.6 billion, and the net profit was as high as 2.6 billion, but now that more than 20 years have passed, Changhong's net profit in 4 years is not even as high as 20 years ago.
In fact, in the final analysis, because Changhong has made serious mistakes in judging the market, after 2000, the domestic economic development level has improved, and products such as television sets have entered thousands of households, so people have begun to pursue a higher level of consumer experience for such products.
But Changhong did not realize this problem, but in the existing product scale, continue to expand the procurement of raw materials, when the head of Changhong's business said, "to buy as many parts as possible for the production of TVs, on the one hand to prevent other manufacturers from expanding the scale, on the other hand, to let Changhong grasp more markets."
However, such a decision led to a shortage of funds in Changhong, and a large inventory backlog was difficult to clear, resulting in Changhong having to sell TV products that were slightly outdated all year round.
And LCD TV has begun to emerge, when Changhong because of the wrong investment in the plasma TV project, spending 4 billion yuan but no gain, forcing Changhong to sell the project at a low price of 64.2 million yuan.
Just when Changhong's business innovation was stagnant, hisense and other brands rose rapidly, and in 2018, Hisense packaged itself as a "Chinese TV champion" image in the World Football League.
Since then, Changhong's development path has become narrower and narrower, and it has even had to choose to act as a foundry for Xiaomi air conditioners in exchange for the growth of revenue and profits.
And it is worth mentioning that in June 2021, the domestic product price of the air conditioning market was a statistic, and it was found that the price of Changhong's own air conditioning products was about 1600 yuan, and the price of the air conditioner that Changhong helped Xiaomi OEM reached 1900 yuan, which was 300 yuan higher than the Changhong air conditioner.
From this aspect, it can also be seen that Changhong is not only a tv product that has a business dilemma, but even the air conditioning business has been slowly surpassed by Xiaomi.
Under such a business dilemma, Changhong has already begun to sell assets and production lines early.
In mid-June 2021, Changhong sold all the shares of the property company in Mianyang, Sichuan, and as early as 2010, Changhong had been selling assets in Sichuan.
As of January 5 this year, Changhong's total market value is only 15.4 billion yuan, compared with the peak of 58 billion, the decline of Changhong's development has been clear at a glance.
Despite this, Changhong still has not given up its own major businesses, and changhong can still be seen active in the e-commerce platform, can Changhong still achieve transformation in the future and continue to stabilize its position in the market? What do you think?