The performance of the TV market in the past two years can be summarized in two words - sluggish.
Just how sluggish is it? Simply put, not only has the shipment volume been declining year after year, but the usage rate of TVs has also plummeted sharply. According to the "2024 China Smart TV Interaction New Trend Report" released by the Forward Industry Research Institute, since 2016, China's TV activation rate has dropped from 70% to less than 30% in 2022.
The sluggishness in the TV market has not completely dissipated. According to the latest data from Ovvi Cloud Network, global TV shipments in the first quarter of 2024 saw a 0.8% decline. Looking at it from an annual perspective, the situation is even more apparent. Over the past two years, TV shipments have been under continuous pressure, reaching a nearly decade-low in 2023.
Polarization in Recovery
From the data above, it seems that the TV market has been consistently lackluster, making it harder for TV brands to break through in such a market. However, the reality is not as straightforward. Behind this lies another layer of causality - not all manufacturers are in the same boat.
From a simplistic viewpoint, the differences in this scenario can be divided into at least two aspects:
The first aspect is the differing temperatures between Chinese TV brands and international TV brands.
On a global scale, while Samsung and LG are among the top five TV brands in terms of global TV shipments, their growth trends differ from the strong growth of Chinese TV brands, almost being in a state of continuous decline. Especially in the past year of 2023, according to Ovvi Ruwo's "Global TV Brand Shipment Monthly Data Report," the shipments of the top five brands, two international TV brands, Samsung and LG, saw a year-on-year decline of 7.7% and 7.3% respectively.
Chinese TV brands have almost all maintained a growth trend. Among them, Hisense TV's shipment volume ranks second only to Samsung, with a 5.9% year-on-year growth. As domestic brands rise, the once dominant international brands are slowly declining.
On another front, the market price differentiation is becoming increasingly severe, with a growing trend towards high-end products.
Looking at the TV market, the low-end market faces fierce competition, while the trend towards larger screens and high-end products becomes the main driving force for the industry. According to a report by AVC Revo, in the first quarter of this year, amidst a 0.8% decline in the global TV market shipment volume, the 85-inch and 100-inch large screen TV market showed rapid growth, driving product structure upgrades. Particularly, in the domestic market, sales of 100-inch large screen TVs in the first quarter increased by over 300% compared to the same period last year.
When recovery quietly arrives, victory still belongs to a few companies that have been deeply cultivating their markets. According to data, in the 85+ inch TV market, Hisense TVs saw a year-on-year increase in shipments by 49.7%; in the 100+ inch TV market, Hisense TVs saw a year-on-year increase in shipments by 8.5 times.
Throughout the development cycle of the TV industry, two key factors have always influenced its growth: consumer purchasing power and whether the product itself has value points that resonate with consumers, sparking their desire to make a purchase.
At the current juncture, consumer purchasing power is closely tied to global and national economic cycles, presenting a similar scenario for TV brands. Therefore, value points are the primary factors that drive user purchases.
In the early days of television, even simple black and white images could satisfy viewers' needs. Subsequently, manufacturers introduced color screens to captivate audiences. Later on, TVs not only needed high-definition picture quality, but users also began to demand smart and user-friendly systems, along with more sophisticated designs.
So, the question arises: as we approach the year 2024, what are the current value points that truly matter to TV users?
Creating Incremental Value in Stock
At first glance, the value points that users care about seem to evolve over time.
However, with a bit of patience and a look back at the century-long history of the television industry, one would find that the narrative is dominated by four words: technological innovation.
From black and white to color, from rear projection to LCD, and now to Mini LED, the appearance of televisions has been changing - becoming thinner and larger in size. Yet, the most profound aspect remains the continuous evolution of display technology, with colors becoming richer and more detailed, and details and dynamics becoming increasingly realistic.
The constant amidst technological changes is the deep understanding of users and continuous self-improvement. In terms of bringing value through technology and driving growth, Hisense, as a leading domestic TV brand, has always had a clear understanding:
Currently, competition in the TV market mostly revolves around the stock market, which is the main reason for the continuous decline in market share. Hisense's ability to achieve growth in the stock market lies in its exploration of the incremental market, developing it through technological innovation to revitalize the economy.
For instance, while many brands are following the trend towards high-end and large-screen TVs, Hisense has taken a different path by pioneering laser TVs as a differentiated product. By launching the world's first 4K laser TV, the world's first full-color laser TV, the world's first 8K laser TV, the world's first curved screen laser TV, and the world's first foldable laser TV, especially with the introduction of the world's first foldable laser TV, which solves the problem of difficulty in installing large screens, further driving the rapid development of the 100-inch screen market and leading into the era of 100-inch screens.
Furthermore, during this year's AWE, Hisense introduced its self-developed AI technology achievement - the Starry Sea Big Model. Its presence has transformed the role of TVs under the influence of AI, breaking past limitations in human-machine interaction and expanding the TV's role to accommodate more household services. With the support of AI, Hisense has created the ULED X full-scene AI computing picture quality platform, which upgrades the entire chain from "sensing, core, light, screen," automatically adjusting the best picture quality effect based on real scenes. This series of specific capabilities and technologies are leading the TV industry into a new era of AI.
Looking further ahead, technological innovation cannot solely focus on the technology itself. The ultimate goal of technological innovation is brand power, most tangibly represented by product strength. In this aspect, Hisense has a very comprehensive product layout.
In terms of laser TVs, Hisense's latest release, the Hisense Laser TV Starlight S1, boasts a screen as thin as 2 centimeters in appearance. It requires no external wiring, achieving a seamless wall-mounted effect. In terms of picture quality, the Starlight S1 uses a three-color laser light source sourced from cinemas, equipped with a self-developed LPU digital laser engine, achieving a breakthrough 151% DCI-P3 color gamut value, color accuracy ΔE <0.9. With the support of AI color gamut adaptation, dual-color calibration technology, and DMD microsecond-level dimming, each frame is filled with a cinematic feel.
In terms of eye protection, the Starlight S1 is equipped with ten eye protection technologies, caring for your eyes from light sources to the screen. The light reflected from the screen into the eyes is soft and natural. The RGB pure laser light source avoids harmful blue light waves, safeguarding eye health from the source. The equipped Fresnel passive anti-glare screen effectively prevents glare, reduces reflection interference, and allows for an 80-inch screen to be viewed in a 2-meter space. Long viewing hours won't tire your eyes, ensuring a more comfortable viewing experience.
In terms of sound quality, as a laser TV certified by IMAX Enhanced, the Starlight S1 achieves extraordinary sound quality while delivering excellent picture quality. The unobstructed front sound combined with sky-directed sound creates a transparent surround sound effect. The 90W powerful sound is tailored for movies, with an independent subwoofer capable of diving down to 35Hz. With unparalleled immersive sound effects in the same price range, it creates a cinematic audio-visual experience in your own private theater.
The Hisense laser TV Starlight S1 series, with the industry's first authoritative endorsement for zero harmful blue light and the industry's highest color gamut level, once again refreshes the home viewing experience of large-screen TVs, making it a highly worthwhile purchase. Currently, the Hisense laser TV Starlight S1 is priced at 8999 yuan for the 75-inch model, 9999 yuan for the 80-inch model, 14999 yuan for the 88-inch model, and 19999 yuan for the 100-inch model.
In the traditional LCD TV field, the Hisense U8N Pro TV is an outstanding representative of AI technology. For example, based on the Xinghai large model and JuCloud big data autonomous learning evolution, the U8N Pro has the ability of AI all-dimensional perception. Factors such as the brightness of ambient light, the distance and angle between people and the TV, and the quality of the content source have become reference items for picture quality adjustment. Through the industry's first full-link custom AI chip architecture, it achieves deep processing of image signals on both the backlight and display levels. Regardless of the viewing environment or content source, the U8N Pro can automatically calculate and present the best picture quality.
In addition, the new E5N Pro model from the Hisense TV E5 series, featuring outstanding ULED Mini LED display technology, the Core AI Picture Quality Chip, and AI calibration, also has many highlights. For example, the Hisense TV E5N Pro, with ULED Mini LED display technology, achieves even more precise control of light and accurate color reproduction.
At the same time, the chip is also one of the advantages of the Hisense TV E5N Pro "Picture Quality King". The Xinchip AI picture quality chip achieves AI calibration of the picture, allowing for deep perception of the picture during viewing, adjusting the details of bright and dark scenes to enhance the clarity and smoothness of the picture. Additionally, the Xinchip AI picture quality chip can automatically detect ambient light, maintaining high contrast display of the picture at all times, ensuring transparency during the day and softness without glare at night.
Moreover, Hisense TV has launched the 618 pre-sale activities on Tmall and JD.com, where users can enjoy multiple upgrade benefits. For example, purchasing the Hisense TV E5N Pro entitles users to a 50% discount, free installation, 365-day extended warranty service, as well as limited-time red envelopes and other generous benefits, bringing tangible benefits to users.
In conclusion: the competition in the TV industry remains fierce, but the good news is that the advantages of Japanese and Korean companies are gradually diminishing, showing a trend of "give and take" in the global market. Chinese brands led by Hisense have achieved market share growth. Hisense has established its leading position with technologies such as laser TV, ULED X, and AI. Currently, during the 618 promotion period, TV prices are very favorable, making it the best time for those looking to upgrade.
