LeTV and TCL's online and offline integration to expand multi-channel development has become a consensus

LeTV’s cooperation with TCL’s capital at the end of last year has caused widespread concern and the cooperation between the two parties is further deepening.

On September 30, TCL Multimedia announced a further cooperation with LeTV. The two parties will carry out more in-depth strategic cooperation, in which sales and interoperability is one of the important contents. One is a traditional brand giant with more than 2,000 core flagship stores and more than 20,000 stores, and one is the rapidly developing Internet TV brand of its own mall. Both parties will try to achieve further interoperability in the distribution channels.


Online and offline integration

LeTV and TCL will cooperate in sales and marketing, including online and offline channel platforms.

On September 30th, TCL Multimedia announced a further cooperation with LeTV. The two parties will carry out more in-depth strategic cooperation and further cooperation on the World Cup China qualifiers and advertisements.

It is understood that in the cooperation between the two parties, sales and communications are also one of the important contents. According to Zhang Zhiwei, vice president of LeTV’s new sales, LeTV and TCL will cooperate in sales and marketing, including online and offline channel platforms. At the same time, LeTV will open up a marketing system and sales management system with TCL to realize the sharing of resources and data between the two parties.

Why do traditional home appliance brands and Internet brands develop in cooperation? Peng Xiandong, general manager of China Blackcom Research Center, said in an interview that the traditional brand has developed for many years and has a mature channel model, with advantages such as online home appliance chain stores in first-tier cities. Gome and Suningli are still dominated by traditional brands. On the contrary, Internet brands have little advantage in online channels. The user traffic of Internet brands such as Leshi and Xiaomi is much larger than that of traditional brands. The official website of Leshi and Xiaomi brings brand to the brand. Sales volume. Therefore, the cooperation between the two parties is to achieve complementary advantages.

It is understood that TCL currently has more than 2,000 core flagship stores and more than 20,000 stores in the country. LeTV mainly uses its own e-commerce company Leshi Mall, Suning Tesco and offline store LePar. In the future, both parties will achieve further interoperability in the distribution channels and give full play to their respective advantages.

Previously, the two sides have been expanding their online and offline channels. This year, TCL Multimedia has continued to promote the integration of online and offline development, as well as strengthen joint marketing and cross-border cooperation with multiple channels. In the first half of the year, its e-commerce sales ratio increased from 14.4% to 20.2% in the same period last year.

As for LeTV, although it opened LePar and made various offline attempts, its main sales are still concentrated on the online market. Its e-commerce sales accounted for more than 80% last year. In the online market, LeTV has achieved a certain market share and remained relatively stable. It is necessary to further expand the market and expand offline to become its current main content.

Recently, on the eve of the LeTV 9•19 event, Levision and Suning contacted the establishment of flagship stores, joint marketing, and after-sales services, and reached a series of cooperation plans. For example, Levision will open a line at Suning Tesco in the second half of the year. On the official flagship store and the offline experience hall, the first LeTV experience shop will be opened in Nanjing and Beijing in December; LeTV will access Suning's color TV delivery and integration services, enjoy the integration of Suning's delivery, trade-in, free installation, Free delivery racks and other services.

Of course, not only TCL and LeTV, other brands are also expanding channels from various aspects. Skyworth, Hisense and others are all developing E-commerce platform sales. Other Internet brands are also strengthening cooperation with traditional manufacturers.

Zhou Can, the vice president of Fengxing, once said in an interview that popular channels and services come from its ecological chain partners, such as the channel and Gome cooperation, and logistics and after-sale services come from Haier.

Multi-channel development has become a consensus

In the past, e-commerce only moved offline business to online and realized the electronic level of transactions, but it has not yet established a complete industrial cycle with users, products, and offline channels.

For all television brands, online and offline multi-channel development has become a consensus. On the one hand, Ove Cloud Network data shows that, from the perspective of sub-channels, the market performance of color cables in the first half of this year was excellent, with 8.46 million units of market retail sales, a year-on-year increase of 64%, accounting for 36% of the overall market, of which public electricity suppliers accounted for 29%. Self-employed e-commerce accounted for 7%; retail outlets of offline entities all showed declines in different degrees, among which department store channels and other entity stores had the largest declines, dropping by 16% and 19% respectively year-on-year.

On the other hand, currently TV brands are often divided into two camps, Internet brands and traditional brands. Internet brands have brought impacts on traditional brands by virtue of marketing and price, and the market share of traditional brands has shrunk. Among the factors that play an important role in the development of Internet brands, the e-commerce bonus is one of them. The convenience of online channels has greatly promoted the development of Internet brands.

Peng Xiandong said: “The reason why Internet brands have developed rapidly in the past two years is because online channels such as Tmall and Jingdong are developing rapidly. This is in line with the rapid development of Internet brands. If e-commerce has not developed so fast in these two years, it may be The growth of Internet brands is not so fast."

However, with the decline of the e-commerce dividend effect, Internet brands have also ushered in their own growth bottlenecks. For TV, a “big piece” product, maintenance and after-sales are important contents, and online channels lack these experiences and services; the Internet platform is virtual, and the lack of product experience is the soft underbelly of the development of Internet TV; the online platform is The coverage of three-and-five-tier cities, villages, villages, and remote areas is low. Therefore, in order to achieve further growth, these brands must go online and offline. Industry analysts say.

The most ideal way to develop online and offline channels is O2O. According to Ovid cloud network analysis, zero-distance approach to users, experience the actual restoration of shopping scenes, big data feedback is the three future development direction of the TV channel in the future, and online and offline multi-channel integration is essential to achieve these three directions. The premise.

As analyzed by Liu Fei, an analyst at Owen Cloud Network Black Enterprise Group, the business model of multi-channel integration is the O2O ecology of “online/offline scenarios + offline products + logistics and distribution”, online and offline. In the process of jointly promoting services for consumer behavior (discovery, purchase, payment, feedback, etc.), the online, offline, and offline merchandise systems, payment systems, operating systems, and customer systems will eventually converge and convergence converge. Finally, an effective supply of omni-channel contacts for solving the zero distance between supply and demand is formed.

However, the exploration of O2O by home appliance companies is not smooth. As Dong Min, general manager of Ovid Cloud Network Display and Digital Entertainment Group, said that the development of e-commerce in the past two years, a large part of it has only moved the offline business online, magnified the radiation range of the store and realized Electronic at the transaction level. This “moving house” to some extent eliminated some of the physical storefront costs, but the electronic sales space is not equal to the optimization of the entire industry chain. The current e-commerce model does not establish a complete industrial cycle with users, products, and offline channels.

Industrial watcher Hong Shibin said that O2O is difficult to do. First, there will be a focus on channel construction. The online and offline user groups are different, their needs and characteristics are different, and the second is the product. Constraints, online products and offline product characteristics are different, offline channel costs are high, product value is high, and prices are high; online channel costs are low, and product prices are low.

Indeed, at present, the prices of online products are lower than offline, and for different home appliance manufacturers, their products in different channels are also different. According to the statistics of a certain week in China's Yikang color TV, online and offline, LeTV model coincides with 85%, PPTV's model coincidence is 100%, and TCL, Hisense and other brands this ratio is lower, in which Hisense is 44%, Skyworth 35%, TCL 26%, and Changhong 23%.

As for the cooperation between TCL and LeTV, Hong Shibin believes this is a good cooperation model. "This is not a complete sense of O2O, because it is still relatively far away from online and offline like O2O. Now the cooperation between the two parties can be said to be online and offline. It is a simple fusion and matching. If both channels The formation of a community is not a good road, but it can be difficult to say.

In Hong Shibin’s view, the cooperation between TCL and LeTV can “step over” the above two issues. For example, TCL channels can run LeTV products, and LeTV channels can sell TCL products to achieve offline experience and services. Can ensure fast online transactions and promotion.

Although it is still too early to realize a thorough reform of the channel, television manufacturers are exploring.


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