Prevailing TV did not sell the first picture of the pie: it means that the bottom price of the friends will be hit

In September 2015, popular network, Sci-Chi shares, Haier, Gome and Oriental Pearl announced that they would form a "super dimension ecology" to jointly promote smart TV (aggregate reading) products.

After three months, CEO of the popular network Luo Jiangchun said to the outside world that “Fashion TV” will be officially released in mid-December. Popular TV will rely on Siu Chi's industrial chain advantage in the field of TV OEM. The positioning of the listing is to “break through” the bottom price of the business partners and finally achieve the sales target of 12 million units in 3 years.

In contrast to LeTV (collectively reading) Xiaomi (aggregate reading) and even the recent Internet TVs such as PPTV and Storm, TV sets have a relatively complicated equity structure system behind TV. In this system, known as the “Double-level Equity Structure”, the five companies of Fengxing, Siu Chi, Gome, Haier, and Oriental Pearl have achieved multiple cross-shareholdings: Gome, Haier, and Oriental Pearl are both shareholders of Chao Chi and are popular. shareholder. Oriental Pearl provides TV licenses and content support for popular TV. Gome and Haier provide support on sales channels. Siu Chi provides product-level production R&D. Finally, the five companies form a relatively stable alliance of interests.


Luo Jiangchun said that because of the special ownership structure, popular TV will simultaneously sell two popular products: popular brand television and popular television. The positioning and channels of the two products will be different.

The so-called popular TV refers to a TV that has a popular system and a popular content platform. Haier TV and Gome TV in the "Super-dimensional Ecology" can be transformed into popular TV by installing the popular system. The “Ultradimensional Ecology” also has its own open properties. In the future, other brands can also become partners in the “popular TV” through cooperation.

According to the current plan, Haier promises to provide 1 million units of sales each year. Gome and another partner, Zhongdian Panda, also promised to sell 500,000 units each. Being popular is trying to reach the sales target of 100-200 million units. In this way, the initial sales target of 12 million terminals will be achieved within 3 years.

Concerned about the overall sluggish demand and negative growth of China's color TV market, and the preconceived situation of LeTV and other Internet companies, the popularity of TV in order to stand firm in the fierce market competition, the price may become the most effective weapon. Luo Jiangchun said that regardless of the high-end products will be the first to put the price-performance ratio, "The first thing we have to do is to break through the bottom price of your friends, we will price according to the BOM, the hardware is ready to make money ."

The daring to venture into the market at an ultra-low price actually stems from Siu Chi shares, one of the shareholders. It is reported that Sci-Chi shares are currently the largest color TV ODM manufacturer (original design manufacturer) in China, mainly providing OEM production and manufacturing to domestic color TV manufacturers, with an annual capacity of 14 million TV sets and 15 million set-top boxes.

By controlling the upstream and downstream industrial chain of TV hardware, Siu Chi can not only meet the demand for production capacity, but also achieve the effect of reducing the final selling price of the product. This may be the greatest advantage of TV companies in comparison with LeTV and Xiaomi. It is hardly surprising that Luo Jiangchun thinks that after the next big battle, the number of Internet TV brands next year may be reduced to less than three. All this will gradually kick off with the official release of TV and the announcement of the price in the coming days.

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