In the first half of 2017, the TV industry faced a challenging period, with many companies experiencing net profits below 1%. This performance sent a clear signal that the market was cooling down, and the once-thriving color TV sector was now facing intense competition and declining demand. As the National Day and Mid-Autumn Festival holidays approached, many questioned whether this would mark a turning point for the industry. The answer, however, was evident—only those who adapted quickly could survive.
According to third-party market research data from Yikang, China's color TV shipments dropped by 10.8% year-on-year in the first half of 2017, reaching 22.51 million units. Retail sales, while showing a slight increase of 0.8% to 75.4 billion yuan, still reflected an overall downward trend. Peng Xiandong, General Manager of China Consumer Electronics Co., Ltd., noted that the industry had never seen such a difficult period, with sales figures plummeting across the board.
With pressure mounting, the second half of the year became critical for TV manufacturers. As major promotional events like National Day, Mid-Autumn Festival, Double 11, and Double 12 approached, companies were scrambling to capture market share. Those who could lead in these key sales periods, even if their first-half performance was underwhelming, had the potential to recover and perform well throughout the year. Hence, most TV brands began preparing early to gain a competitive edge.
On September 12th, Konka Television partnered with Shaanxi Suning, Midea, and TCL to launch a media briefing titled “September 22–24: Brands Linked to Explosive National Day.†The event aimed to kick off the holiday season with joint marketing efforts, leveraging shared resources and services to create a more appealing consumer experience. Konka’s recent market performance has been impressive, indicating a strong resurgence.
From dominating the CRT TV market to leading the transition into LCD technology, Konka has continuously evolved. Facing fierce competition, the company undertook significant internal reforms, focusing on three major transformations to reclaim its position as a top-tier brand.
First, Konka shifted its product strategy from short-term imitation to long-term innovation. With the rise of internet TV in 2013, traditional brands like Konka initially struggled but eventually caught up through continuous R&D and technological advancement. Konka’s introduction of "Variable Frequency TV" marked a breakthrough, offering superior picture quality and stability. The R1 inverter TV, which won the 2017 Innovation Technology Award, is a testament to this shift.
Second, Konka repositioned its brand image to appeal to younger consumers. Once seen as a traditional TV brand, Konka now embraces modernity through sports and entertainment marketing. By sponsoring the Suning Football Club and La Liga, the brand connected with young fans globally. Additionally, collaborations with music festivals and reality shows helped strengthen its presence among younger audiences.
Third, Konka transformed its business model from hardware-centric to integrated soft-hardware solutions. While maintaining strong manufacturing capabilities, the company invested heavily in software development and user experience. Liu Fengxi, Chairman of Konka Group, emphasized the importance of combining hardware with services, ensuring sustainable growth.
Konka’s diversified approach also included expanding into internet and financial services. These new ventures contributed significantly to the company’s revenue growth, helping it outperform the broader industry. In the first half of 2017, Konka achieved a 2.5% growth in color TV sales, despite an overall 25% decline in the sector.
Through strategic transformation in product, brand, and business models, Konka has not only survived but thrived. As the TV industry continues to evolve, brands like Konka are leading the way, reshaping the competitive landscape and setting new trends.
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