The controversy over Internet TV: Low price equals low-end?

Gradually approaching the end of the year, in order to grab business opportunities during the peak season, the price war in the Internet TV market is also culminating. Of course, the first to go is the cross-border Internet companies, LeTV, Xiaomi, etc. have successively launched a "back-and-forth price", in the 50-60-inch range of traditional home appliance manufacturers to maintain profit margins also launched a fierce price offensive. For the low prices, most consumers are happy to see, but people in the industry have different views, that the bottomless price war will be low-end brand image, unfavorable to the overall development of the market. Is this really the case?

As one of the famous price killers, Xiaomi has been very active in the TV field recently. Xiaomi TV 3 has launched a 50-inch and 60-inch large-size version, and has pioneered the concept of splitting and launched an impact on high-end people. However, the price of the so-called "lumbar" has caused a lot of controversy. In response, Lai Yongsai, vice president of TV, told an interview with reporters in Guangzhou recently that the low price of Internet TV should not be equated with the low end. Millet TV has adopted the materials of top suppliers in many aspects such as LCD panels, TV mainboards, and supporting audio systems, and has a large number of technological innovations. The quality is absolutely guaranteed. The reason why the low price can be achieved depends mainly on cutting down the channel cost and saving the cost of advertising promotion, mainly through word-of-mouth marketing, which is by no means a product cut-off in R&D, production, and manufacturing.

From this point of view, Yang Qun, chief analyst of the Warring States policy, agrees that, in his view, Internet companies have fundamentally different business models from traditional home appliance manufacturers, relying on low-cost hardware to profitably promote profitability and even negatively profitable marketing to establish user scale advantages. , And then through other models such as software, services and even advertising is the root of their keen to "price war", but it is precisely because of this. "Internet companies do not cut corners when they do television because its low price is used for word-of-mouth, so it can't be rudely called low-end."

Price blood war is not conducive to industry upgrading

For the low-cost strategy of Internet manufacturers in the smart TV field, traditional manufacturers actually have some "passive attacks". Although they have inherent advantages in channels, they have been led by the nose in marketing communications. "Low prices" are always more eye-catching, so the new LeTV, Xiaomi, etc. took away a lot of attention, forced helpless, traditional manufacturers have also joined the low-cost competition, but the euphemism of some - the launch of the Internet sub-brand For example, TCL's TV, Skyworth's CoolCube, Konka's KKTV, Hisense's VIDAA, and Changhong's CHiQ, etc., these brands are targeting these young, medium- and low-end consumer groups and maintaining the original brand's original price system. At the same time, with the Internet sub-brand to compete with the Internet brand price, such as a cool open 40-inch 4K color TV, the price of 2799 yuan, and Skyworth brand 50-inch 4K TV prices between 3699-5999 yuan .

In this regard, Liu Buchen, a veteran household appliances industry observer, did not agree, and he wrote that if he bought television, he definitely did not buy an Internet brand TV. The reason was that the Internet brand gave him the impression of "low-end TV." "Almost all internet brands have only one thing to do: low prices, low prices, and low prices. According to the logical thinking of the Chinese people's "one price, one price," I can only come to the conclusion of 'low-end'. ". In addition, the quality and after-sales issues that Internet TV products such as Levision and Xiaomi have frequently exposed during consumer use have also deepened the low-end impression many consumers have.

Not long ago, the general manager of PPTV TV Chang Jiang is also an open bombardment of Internet TV looks very cheap, but there are many hidden consumer traps, cheaper is only the "bare metal" price, other additional costs consumers need to pay their own pockets, but forcing TV users to buy members Fees, start-up advertisements, clarity and payment links, installation fees and so on are all against the will of users.

Trend: price war will still exist in the short term

As Internet TV brands left more low-end impressions on the outside world, some Internet TV manufacturers also began to rethink the positioning of products. A few days ago, Cool TV Chairman Wang Zhiguo spoke bluntly: “Now Internet TV is blindly pursuing low-price, non-style innovation.” He believes that low prices can't make super-stylish products. Cool open recently released T55 TV did not hit the price card, but the quality as the main selling point, 7999 yuan higher than the average Internet TV brand to be much higher.

Not only is it cool to open, but LeTV, which has been playing a price war in the past, also launched a 120-inch 4K LCD TV with a price of nearly 500,000 at the end of October. However, as the industry cries out that Internet TV is beginning to shift from a price war to a value war, Wang Zhiguo believes that Internet TV is now in trouble. Consumers only remember low prices and can not say brand loyalty. Price war will still exist in the short term. It is still too early to say that television has shifted from a price war to a value war.

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