The current situation of China's TV industry
In recent years, China's TV industry has seen a significant downward trend. According to industry data, China's TV shipments in 2023 will only be 36.56 million units, a year-on-year decrease of 8.4%, a new low in a decade. This figure is in stark contrast to the North American market during the same period, with 47 million TVs shipped in 2023, far exceeding the Chinese market. As a populous country, the downturn in China's TV market has aroused widespread attention and thinking inside and outside the industry.
The downturn in China's TV industry did not happen overnight, but was the result of a combination of factors. From a macro perspective, factors such as China's economic slowdown and declining birth rate have led to sluggish growth in overall consumer demand. At the micro level, the weakening of the function of the living room of Chinese families, the fragmentation of user time, and the diversification of viewing equipment choices make TV no longer a rigid product in family life. With the development of Internet technology, people's channels for obtaining video content are becoming more and more diversified, and traditional TV viewing habits are being broken.
cause
The deep-seated reasons for the downturn in China's TV industry are mainly reflected in the following aspects:
The weakening of the function of the living room in Chinese families is an important factor that cannot be ignored. With the acceleration of the pace of life and the increasing pressure of work, people spend less and less time at home, and the living room is gradually declining as a place for family members to gather and entertain. The role of private spaces such as bedrooms and study rooms is becoming increasingly prominent. Under this trend, the TV, as the main entertainment device in the living room, has naturally been impacted.
The fragmentation of user time is also an important reason for the decline in demand for TV sets. The pace of life of modern people is getting faster and faster, and the free time in work and life is often scattered and disconnected. In this case, people are more inclined to use mobile devices such as mobile phones and tablets to get entertainment content, and are less likely to sit in front of the TV and watch programs for a long time.
The choice of viewing devices is also becoming more and more diverse. In addition to traditional televisions, people can now watch video content through a variety of terminal devices such as computers, mobile phones, and tablets. These devices are more portable and interactive than televisions, giving users more options when choosing their viewing devices.
Challenges faced by the industry
In the face of the downturn in the TV industry, Chinese TV companies are also facing many challenges:
The upgrading of household consumption has led to an increase in the demand for large-size, high-quality TVs. With the improvement of people's living standards, the requirements for TVs are also rising, and it is difficult to meet the needs of consumers by relying solely on low-priced ordinary TVs. This requires TV companies to increase R&D investment and launch more high-end intelligent products.
The rise of Internet video services has also had a huge impact on the traditional TV industry. Video sites such as Netflix, Tencent Video, and iQiyi provide users with rich and diverse video content, and they can be watched anytime and anywhere, which brings a diversion effect to TV ratings. TV companies must think about how to form a positive interaction with Internet video services, rather than confrontation.
The impact of the new crown epidemic is also a major challenge for TV companies. During the pandemic, TV production and supply chains have been severely impacted, and business operating costs have increased. The pandemic has also affected consumer confidence and purchasing power to a certain extent. TV companies need to take effective measures to deal with the adverse effects of the pandemic.
Business coping strategies
In order to cope with the downturn and various challenges in the industry, Chinese TV companies are also actively taking countermeasures:
In terms of product structure, TV companies are increasing investment in large-size, high-resolution, and intelligent TVs. These products can not only meet consumers' demand for high-quality TVs, but also have more smart features that can be better integrated with Internet video services. TV companies are also exploring new business models, such as content subscriptions, advertising, and other ways to generate revenue.
In terms of market development, Chinese TV companies are increasing their efforts to develop overseas emerging markets. Due to the sluggish growth of the domestic market, companies have set their sights on emerging markets such as Southeast Asia, Africa, and Latin America. These regions have a large population base and rapid economic development, and the demand for television sets is also growing. By tapping into overseas markets, TV companies can gain new growth momentum.
In terms of marketing, TV companies are also increasing their online marketing efforts, using the Internet, social media and other emerging channels to attract consumers. Enterprises are also exploring new marketing models such as personalized marketing and experiential marketing to improve the attention and reputation of products.
The future prospects of the industry
Although China's TV industry is currently at a low ebb, in the long run, the industry still has a lot of room for growth. This is mainly based on the following factors:
As a country with a large population, China's huge population base determines the potential demand for the TV market. As urbanization progresses, more and more people will move to cities, and the demand for televisions will continue to grow.
With the continuous improvement of people's living standards, the general trend of consumption upgrading will also bring new opportunities for the TV industry. High-end large-size TVs, smart TVs and other products will become the focus of future development.
The development of new technologies such as 5G and 8K will also bring new impetus to the development of the TV industry. These new technologies will greatly enhance the viewing experience of TVs and meet consumer demand for high-quality video content.
Although the current TV industry is at a low ebb, as long as enterprises follow the general trend of consumption upgrading, keep up with the pace of technological development, and continue to innovate products and business models, this industry still has a lot to do. Large size, high resolution, and intelligence will be the main direction of TV development in the future.