The tide of price increases is good for everyone in the end, and the price of color TVs “looks up”!

"February 2, the dragon rises," implying that "Spring comes back to the earth and everything recovers, and Furui's auspicious year begins." At the same time, "the rise" is also the price of home appliances. Recently, a wave of "price increases" swept the entire home appliance market, and at the same time also played a lot of consumers wanting to buy a coin "unprepared", and in which the price of color TV products rose the most obvious.

Reasons for price increase due to upstream pressure + business intention

In fact, this wave of color TV prices has begun to brewing from the second half of last year, and some Internet brands even made price adjustments on some of their products even before the end of last year. For example, in November last year, LeTV raised its price by 100 yuan for each of its 40-inch, 43-inch, 50-inch, and 55-inch models, and each of the 65-inch models increased their prices by 300 yuan. However, after the Spring Festival, more color TV manufacturers joined the price increase team, including "self-proclaimed will never increase prices," the millet and the traditional TV companies such as TCL.

As the saying goes, "If the wolf turns back, there must be a reason." Apart from the increase in logistics and labor costs, the most fundamental "reason" is to increase the price of the upstream panel.

Liu Buchen, a senior home appliance analyst, analyzed the reasons for panel price increase. He said: “First of all, LCD panel prices are cyclical, and the last two years are exactly at this price increase node. Second, due to global The major suppliers of LCD panels, Samsung and LG, upgraded and suspended some of their production lines, eventually resulting in phased supply shortages for LCD panels. In addition, the panel giant's advance booking of products also caused insufficient supply of LCD panels.

"As we all know, the color TV industry's profits are currently at the bottom of the entire home appliance industry. The average profit of about 22% is far away from the average profit of 35% to 40% for air-conditioning products, so the color TV industry will have the strongest willingness to raise prices." Wei Yunlong, senior research manager of the display industry chain of Weiyun Network, told the author: “The panel price that accounts for 50%-60% of the total cost of the machine can be described as 'invitation of the whole body', but at the same time, Zhengzhong TV's complete machine company is also eager for the industry. Provide a full price increase reason, and then to meet the color TV manufacturers willingness to price increases, color TV prices surge naturally 'touch the trigger'.

Average price rise accelerates product update iteration

Since the Internet brands entered the TV industry, the color TV industry, like a calm lake, immediately set off a “wave”, the “price war” became the “main theme” for competition among enterprises, and “Libbed Paper Paper” became the new normal of the industry. . However, under the huge pressure of cost, the methods of relying on "price wars" to occupy the market have become unmanageable, and they have also forced manufacturers to focus on "value warfare". The industry may take the opportunity to usher in a new round of industrial upgrading.

Since 2017, the prices of small-sized panels that have continued to rise have stabilized, while the prices of large-size panels have increased as demand has increased. The outbreak of large-size panel prices also proved on the other hand that the demand for large-size panels in 2017 is strong. Manufacturers will focus more on large-size high-end products, hoping to seek more profit margins, compared to almost no profit. Small-size products, large-size high-end TVs are the core profit of TV companies.

In addition to promoting the further development of the product towards the high-end of the big screen, the "price increase tide" is expected to drive the market popularity of new display technologies. “The price of LCD panels has continued to grow, and the price of OLED TVs has become increasingly close to the people. In fact, the price difference between the two products is gradually being reduced,” Liu Buchen told the author: “Companies that pursue profits as their roots will turn their eyes to higher prices. With the new display technology products, Quantum Dots and OLED TVs will be promoted by more companies, which will promote the popularization and development of products in the next era."

Dong Min, general manager of Ovid Cloud Network Intelligent Display and Digital Entertainment Business Group, believes that the increase in color TV prices will outweigh the disadvantages of the industry's development. He said: “The increase in color TV prices is beneficial to the operation of the entire industry, while avoiding the increase in corporate profits. The vicious cycle of low-price competition has made companies more focused on products and users themselves."

The price is difficult to come back when the shot is taken

Right now, home appliance companies may be the most concerned about how to control the cost of each link and increase product profits. For consumers, choosing the best time to purchase a color TV is the top priority. In response to this question, the experts gave almost the same conclusion, that is, "the sooner the better."

“Because the price of the upstream panel continues to rise, the cost of the panel and the company’s willingness to raise prices will make it less likely that TV prices will fall in the first half of 2017.” However, Cui Jilong also pointed out: “The second half of the year The overall price and LCD panel prices are likely to fall. This will be determined by the amount of TV sales in the first half of the year. From a long-term point of view, consumers are advised to purchase as soon as possible.”

Liu Buying also holds the same point of view. He said that from the consumer's point of view, the sooner the better to buy TV sets, or choose similar activity nodes such as “May 1st” and “6·18”, then the merchants will be launched. Some promotional activities, but from the overall forecast for the whole year, color TV prices will only increase over time.

Conclusion: In summary, it can be seen that the price of color TV is not affected by a certain factor, but is the result of the joint effort of all upstream and downstream industrial chains. The “price increase tide” can be said to have occupied “the time of day, geography, and people”. At the same time, this wave of “price surges” is expected to drive the overall upgrade of color TV products, accelerate the elimination of brands with no core competitiveness, and promote the healthy development of the industry. Therefore, in the long run, rising prices will play a certain role in promoting industrial development and purifying the industry.