OFweek smart home network news In recent years, in the changing color TV market, domestic brands continue to seize the highlands: the traditional brand share to further expand, crazy growth of Internet brands, directly leading to the reduction of foreign brand share. According to the China Yikang retail monitoring data, the market share of foreign brands dropped from 36.1% in 2015 to 30.1% in 2016. On the online market, the share of foreign brands also decreased from 19.3% in 2015. To 15.6% in 2016.
Under the double attack of traditional domestic brands and emerging Internet brands, foreign brands such as Sharp, Samsung, Sony, etc., who have struggled in the Chinese market for decades, are under tremendous pressure. Not only does the retail share continue to decrease, but also in order to adapt to the high-intensity and fast-paced promotions in the Chinese market. Activities, the average price is also being pulled down. Except for a few brands, Kankan was able to maintain its share of retail sales, most of them were caught in the dilemma of “losing their wife and breaking their pawnsâ€.
Sharp, who is also in a dilemma, has made a turn for the better because of an acquisition. In August 2016, Taiwan’s Hon Hai Group completed a purchase of Sharp Corp. for US$3.8 billion. Since then, the business model of Sharp TV in the Chinese market has gradually changed.
Sharp TV's five strategies in the Chinese market:
1. Traditional TV Internet, System Content Upgrade
Prior to this, Sharp launched many DS series network TVs on the e-commerce platform. Most of these TVs are fully-functional and rich in content, and they cost-effectively win. After Hon Hai’s “marriage†with Sharp, TV products were first introduced and partnered with Alibaba. They were equipped with Ali YunOS for TV operating system and equipped with Youku Tudou TV to achieve dual system and content upgrades, satisfying users’ expectations for quality and content. .
In addition to making efforts in the e-commerce channel, Sharp has also made great achievements in the field of entertainment marketing, becoming the partner of Hunan Satellite TV's "Singer" in the fifth quarter of 2017. For "Singer", which not only emphasizes quality but also emphasizes sound quality, it is crucial to restore the scene. Sharp's cooperation with them also illustrates the ability of Sharp TV to restore from another perspective, so that visitors who are not on the scene can enjoy the ultimate audio-visual experience.
2. Breaking high barriers and buying discounts
From the second half of 2016, Sharp's buy-gift campaign swept the entire television scene. In 2016, Double 11 and Sharp's “Buy 70 Get 60†promotional campaign, the price of two large-screen TVs for 13,999 yuan, plus 32-month Youku membership package, the first time the new store took the double 11 turnover to break through Billion mark. In the subsequent Double Twelve, the activity continued, while at the same time taking off the top sales of television products and the top sales of 70-inch and 60-inch TVs.
Entering 2017, the promotion not only did not stop, but also increased the “buy 60 get 45†campaign, and member packages also expanded from Youku to iQiyi, Tencent, etc. to achieve diversification of content. For consumers, using the price of one TV in the past, one can buy two TVs, one large and one small, and a complimentary content package to meet multiple needs.
3. Control the upstream panel to suppress Samsung Hisense
The Sharp SDP panel factory has ceased to supply panels for brands other than Hon Hai and Sharp from the first quarter of 2017. Affected by this, South Korean manufacturers such as Samsung and Chinese manufacturer Hisense, etc., have had to cooperate with Sharp to adjust their strategies. And with LGD, China Star Optoelectronics and other panel plant cooperation to ensure the continuous supply of the upstream panel.
The size of SDP's main external supply is 40, 60, and 70 inches, and Sharp-off supply directly leads these affected manufacturers to shift corresponding demand to adjacent sizes. Especially in the large size of 60 and 70 inches, other brands except Sharp have not been large, so the strategy will make other brands turn the demand to 65 and 75 inches, which makes Sharp have an absolute advantage in 60 and 70 inches. It is also why Sharp can continue to carry out the “Buy 70 Get 60†campaign.
4. Acquisition of distributors and expansion of offline channels
Compared with domestic brands, foreign brands do not have outstanding advantages in the low-end market. Domestic brands such as Hisense, Skyworth, and TCL have long been deployed in the low-end market. Except for Suning, Gome and other large appliance chains, they have a stable cooperative relationship with local department stores and local chain stores, especially in townships and towns. Thousands of stores have laid down the brand and user base.
In order to make up for the weakness in the low-end market, Sharp acquired Zhejiang Baicheng, a channel company, and formulated a plan to achieve sales of 300,000 units in Zhejiang Province in 2017, making full use of channels to open up low-end markets.
5. Integrate with real estate to cater for the trend of consumption upgrade
Similar to Lexus and Sunac's cooperation case, Sharp is also integrated with Chinese real estate companies with complementary advantages. In the future, high-end real estate may introduce large-screen televisions in a large scale, cater to the trend of consumer upgrades, and promote the strategic cooperation of “Internet + real estate†in the television and real estate sales.
Earlier, Sharp set a goal of sales of 10 million units worldwide in 2017, including 2.2 million units in the Chinese market. According to the total data released by Yikang, Sharp's total retail sales in 2016 was 1.37 million units, which is to achieve a year-on-year growth of 60.6%. From the current sales situation, Sharp's strategy has achieved good results, the brand share has steadily improved, and reaching goals is just around the corner.
Sharp, after the “marriageâ€, not only has a major change in its marketing strategy, but also has more say in upstream resources, manufacturing, and pricing models. With the increase in user acceptance, Sharp will break the plight of foreign brands in the domestic market and come up with a new path.
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