Foreign brands aggressive domestic brands to strengthen LED TV business

October 26th, Konka Group released third quarter earnings. Quarterly total operating income of 4 billion 541 million yuan, an increase of 17.84%, net profit of $10 million 291 thousand, down by 60.94%. In the first 9 months of this year, Konka Group achieved a total revenue of $12 billion 482 million, an increase of 38.29%, but net profit decreased by $61 million 178 thousand and 500 to $42.63%.

In the analysis of reasons of enterprise net profit decline over the same period last year, Konka Group summed up the two, one is due to the price of some raw materials prices, the other is "foreign brands rely on the upstream resources, low impact to the TV market, seizes the market share of domestic brands, domestic brands are forced to follow up, product gross margin be quickly pulled. "

Such as Konka Group said, domestic brands are being subjected to the collective brand TV increasingly fierce impact. According to the PRC, the data show that in late September, the domestic 32 inch LCD TV as one of the top five best-selling models are all foreign brands, only SHARP accounted for three in five models; 40-42 inch LCD TV before selling models, SHARP, SONY and Samsung occupy the top three, the other two were Konka and Hisense. And Ovid consulting statistics, this year "eleven" period, domestic and foreign brands of color TV sales accounted for 56:44; over the same period last year, this proportion was 71:29.

Li Dongsheng, chairman of TCL, said the Internet TV and LED LCD TV market judgment bias, is the main cause of loss. Konka also said that the first half of the LCD TV price competition, Konka LED LCD TV on the import speed has been delayed, the profitability of color TV products have an impact.

In contrast, the first is betting on LED TV domestic brand harvest is not small. Hisense 2010 first half operating income of 9 billion 488 million yuan, an increase of 27.95%, net profit of 247 million yuan, an increase of 47.8%; SKYWORTH 2009-2010 fiscal year net profit of HK $1 billion 326 million, LED TV's gross margin reached 31.6%.

Other domestic brands have also launched a policy to promote LED tv. TCL hopes that by the end of this year, LED backlight products accounted for about 30%. Konka Group in the release of this earnings report, said the company vigorously promote LED TV, LED TV product sales and sales growth over the same period last year, the product structure has been greatly improved.

Insiders pointed out that foreign TV brands crazy to seize the market, the formation of pressure on the domestic brands in a short time, but the domestic brand has been successfully transformed LED TV, and continue to enter the upstream industry chain, the new competition pattern of this change is to Chinese television industry full of hope.