Household color TV profits as low as 1.8%, but the commercial display market has 10%

Aowei Cloud Network (AVC) expects that the retail sales volume of color TVs used in China will be 38.35 million units in 2021, down 13.8% year-on-year; Retail sales reached 129.6 billion yuan, up 7.2% year-on-year.

It is reported that the domestic demand for color TV consumption has dropped from a peak of 50.88 million units in 2016 to 38.35 million units in 2021. That is to say, in the past 5 years, the sales volume of the domestic color TV market has shrunk by nearly 25%.

And there is another data that makes the industry feel "sad": that is, the profit of the color TV industry in 2021 is as low as 1.8%, far lower than other traditional home appliances and hardware products such as smart phones, which is currently one of the least profitable home appliance technology products.

However, although the profit of color TV products in the household market is as thin as a piece of paper, the commercial display market presents another "scene".

Wen Jianping, chairman of Aowei Cloud Network (AVC), said that from the perspective of scale changes, the business display industry is a continuous growth industry, with sales from 13 billion in 2009 to 80 billion in 2021, and the compound annual increase rate of more than a decade is close to 60%. The field of commercial display has become the most important domestic new capacity digest for liquid crystal display and other products. Especially with the advent of 5G commercial networks and intelligent society, display terminals are an important information window, and the application value of commercial displays is constantly expanding.

As of 2021, although there is still a certain gap between the overall sales scale of commercial displays and household color TVs (household color TV sales are close to 130 billion in 2021), in the key dimension of profit margin, the overall gross profit margin of commercial displays has reached 8 to 10 percentage points, which is much higher than the 1.8 percentage points of home TVs, and the difference between the two is about 4 times.

In addition to the high gross profit margin, in addition, more critically, in the next 5 years, with the increase in demand for commercial display equipment in important sub-sectors such as enterprise office demand, vocational education, manufacturing transformation and upgrading, catering and retail industry, etc., it will maintain a compound annual growth rate of 16%, and it is expected that the sales scale will reach 135.7 billion yuan in 2025.

Yang Fan, an industry veteran and founder of the people's home power grid, told the "Audiovisual Circle": According to the data analysis of Aowei, under the situation that the market space for home color TVs is constantly "shrinking", how to effectively open the door of the commercial display market is related to the key to whether most color TV manufacturers can still survive healthily.

It is gratifying that in recent years, the application track and scene demand of color TV products have begun to be broadened, so that large-screen color TV products can be "cross-border" and the scene application circle has been expanded, which has become a "common choice" for color TV companies. To put it bluntly, color TV companies are fully aiming at the field of commercial display, so that color TV display products are not only the "embodiment" of the household living room market, which is already an important direction for color TV companies to "break through and break through".

According to the "Audiovisual Circle", a number of color TV companies such as Hisense, TCL, Skyworth, Konka, sony and so on not only launch professional products for the field of commercial display, but also set up special teams and companies around the commercial display sector to better "tap" the "big cake" of commercial display.

The audiovisual circle believes that Hisense, Skyworth, Sony, Sharp and other Chinese and foreign display giants push commercial display products, which helps color TV companies to broaden the application of products in office, education, medical and other fields to a certain extent, which is conducive to tapping more consumer groups, bringing new increments, and alleviating the pressure of stock competition in the color TV market!