While manufacturers have a significant influence on consumer behavior, they don't always succeed in driving demand.
Last year, the large-screen TV market experienced a wave of manufacturer-driven speculation, but now it has returned to a more stable phase. Just under a year after their initial push, large-size TVs have fallen into a relatively weak period. According to recent data, due to a downturn in consumer demand, manufacturers are now sitting on a large inventory of big TVs, and their promotional activities have slowed down significantly. Quzhi Consulting predicts that prices for large LCD panels over 55 inches will continue to drop by more than $10 in October.
Panel Price Trend
This is the latest report from Quzhi Consulting, and the situation might be even worse. The current analysis is based on September sales promotions and the October Golden Week stock reserves. Under these conditions, manufacturers have not shown much enthusiasm for pushing products, instead pointing out that the market is performing poorly—perhaps even badly.
Looking back, last year, major TV brands like Samsung, Hisense, Skyworth, TCL, as well as internet-based brands such as Xiaomi and Xiaowei, along with retail giants like Jingdong, Suning, and Gome, all pushed large-sized TVs. As a result, the market saw a brief boom. According to data from Ove Cloud Network, a third-party big data company, 55-inch LCD TVs occupied about 30% of the market during major promotional periods for a long time, while 65-inch models also rose to over 5% and remained strong for more than six months.
Although there's no clear data showing a decline in the share of TVs 65 inches or larger, industry feedback suggests that manufacturers are not as proactive as before. There are two main reasons for this: First, panel prices remained high from last year up until June this year, leading to limited promotions and little consumer interest. Second, manufacturers misjudged the market. While large TVs are a growing trend, in the current industry downturn, other sizes aren’t profitable, and companies are looking for ways to improve overall profitability. In a short time, many manufacturers flooded the market with large TVs, moving from scarcity to oversupply. Now the market is clearly saturated.
Facing the current inventory, many manufacturers lack the same level of enthusiasm seen in previous promotions. However, this could be an opportunity for them to reassess and rethink their strategies. After all, this is a rare moment in TV history where manufacturers can step back and reflect. The era of manufacturers dictating consumption upgrades may be coming to an end. At this stage, companies need to pay more attention to individual consumer needs rather than just pushing trends.
Therefore, in the near future, the color TV industry—especially ahead of the upcoming Double 11 shopping festival—may experience a short adjustment period. Ultimately, those who adapt best to the changes will likely come out stronger in the Double 11 test.
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