Smart TV: 2 VS 1
Smart TV is a lot like the Spring and Autumn period and the Warring States period. Although there were seven kingdoms and a number of small states in the Warring States Period, by the end of the Warring States period, only the Qin, Chu and Qi states could contend for hegemony. The same is true in the field of Smart TV in China. There are many enterprises in the field of smart TV. After several rounds of fighting, a “2 VS 1” pattern has been basically formed between traditional TV brands and Internet TV brands. According to the consulting Report on The Operation Situation and Investment Strategy of China’s Smart TV Market from 2018 to 2024 released by Zhiyan Consulting Network, the top three smart TV companies in China in 2017 were Skyworth 13.7%, Xiaomi 12.8% and Hisense 12%, which is exactly the same as the battle between Qi and Chu in the late Warring States Period. Although the current competition between traditional TV brands and Internet TV brands is still “2 VS 1”, and Internet TV brands are obviously at a disadvantage, but Internet TV brands still have millet TV this strong will, so that Internet TV brands still have a chance to win.
Jiangshan generation of talent, each leading for hundreds of years. The development of Internet TV brands cannot be separated from leEco. At that time, It was LeEco that made great success in the smart TV field. Then a large number of Internet technology companies flooded into the smart TV field, promoting Internet TV brands to compete with traditional TV brands on the same stage. However, due to various reasons, the survival of Internet TV brands is becoming more and more worrying. The collapse of Internet TV leading brand LeEco has opened the cold tide of the collapse of Internet smart TV brands.
In 2017, Chinese Internet smart TV brands were affected by the collapse of LeEco, and many Internet TV brands appeared in crisis one after another. Leeco TV almost stopped production and TV was in the midst of entertainment crisis. The situation that Internet smart TV brands once dominated no longer exists. Data show that in the first quarter of 2018, Xiaomi ranked second in the smart TV industry with a market share of 12.8%, and in the second quarter of 2018, Xiaomi became the first in the shipment volume of the second quarter of the country, showing a strong performance. Although Internet TV brands are still at a disadvantage in the competition with traditional TV brands, xiaomi TV’s “unique” reduces the competitive disadvantage of Internet TV brands and traditional TV brands.
Two big kill help Millet TV rise
As an Internet TV brand, Xiaomi TV only took 5 years to stand out from a large number of Internet TV brands and become the head player of Smart TV in China. However, this is due to Xiaomi’s “cost-effective” product strategy and good user experience.
First, high cost performance. Xiaomi brand has always adhered to the cost-effective line, Mi TV CEO Wang Chuan said that “cost-effective is the secret of the success of Mi TV”. High cost performance in the author’s opinion is “excellent performance, low price, hard quality” these nine words, and Millet TV also confirmed these nine words.
Good performance: The Mi TV isn’t the best in terms of performance, but it’s good. Take millet TV entrance level of intelligent TV Millet TV 4A with price traditional TV brand comparison. As we all know, the most important factors affecting the performance of smart TV are RAM and processor. Although xiaomi TV and traditional TV brands at the same price are basically similar in hardware, they can be significantly different in core equipment like processor and RAM. The processor of the traditional TV brand at the same price is generally 8-core processor and 1Gb RAM. Although the processor of Xiaomi TV is 4-core and 1Gb RAM, the processor performance of Xiaomi TV is better than that of smart TV at the same price thanks to the higher manufacturing process of the processor and higher main frequency, and the memory particle of RAM is superior. The actual capacity is also higher than the RAM of traditional smart TVS, so xiaomi TV’s performance can be in the forefront of smart TVS at the same price.
Low price: Mi TV’s price has always been a big advantage. In addition to selling 10 to 15 percent lower than the price of the same products, but also reflected in the price trend. Affected by the rising price of components such as LCD panels this year, the cost of smart TV will increase, and the whole smart TV field will usher in a surge in price. Liao Chien-ping, chairman of the Taipei Electrical Appliance Association and chairman of Yaguang Electric, said smart TV prices are likely to rise in the fourth quarter, influenced by the rise in TV panel prices in the third quarter. In the context of rising prices in the whole industry, Mi TV still insists on not raising prices, which further highlights the price advantage of Mi TV.
Hard quality: for any smart TV products, quality is the life of the product, only good quality can make explosive products, to make the service cycle of 5 to 7 years, the stability and reliability of the product is particularly critical. In this respect, mi TV uses the first-tier brand Xinpu Electronics as the OEM (LG also uses this OEM), so as to ensure the high quality of MI TV from the source of survival. For example, mi TV 4A 32 inch, the entry product of MI TV, has a total repair rate of only 0.64% in 12 months from mass production, which is only about half of the industry return rate. It is the “excellent performance, low price and hard quality” of Mi TV that makes it become the spokesperson of “cost performance”.
Second, good user experience. There are many factors that affect users’ purchase of products, among which user experience is the most important one. The reason why Mi TV can reach the first place in the shipment volume step by step is also inseparable from good user experience, which is recognized by users. The user experience of Mi TV is better than that of other similar products mainly because its system ecosystem is relatively perfect and it can serve users conveniently and quickly.
MIUI system is the first batch of deeply customized system based on Android system in China. After several years of development, MIUI TV has high functionality and integrity. Mi TV has built In PatchWall system specially adapted by MIUI for smart TV, which not only inherits rich content resources of MIUI system, but also has shorter viewing paths. Make it easier for users to find what they want to watch. Greatly improve the user experience.
To subdue the enemy without fighting is the true teacher of tigers and wolves
Xiaomi TV, founded five years ago, stands out from Internet TV brands and has become the top smart TV shipment leader in China by the second quarter of 2018, which has achieved satisfactory results. However, according to the In-depth Research and Construction Strategy Analysis Report on The Business Model of China’s Smart TV Industry released by Qianzhan Industry Research Institute, the market share of Internet TV brands such as Xiaomi, LeEco and Microwhale was 25.9% in 2017, only one third of the market share of traditional TV brands. The disadvantage of Internet TV brand is still obvious in the competition with traditional TV brand. In order to maintain competitive advantage and become a true teacher of tigers and wolves, problems such as homogeneity and poor artificial intelligence experience of users need to be solved.
Firstly, mi TV is homogenized, so we should focus on product differentiation to improve product competitiveness. For example, mi TV 4A mentioned above and smart TV products with the same price have almost no difference in all designs except logo at first sight. However, the consumption concept of today’s consumers has changed, and they no longer take cost performance as the basic criterion, but pay more attention to product differentiation. Xiaomi TV should also adjust its product competition points in time to improve its competitiveness.
In order to create product differentiation, Millet TV should complement its weaknesses according to its own characteristics, which can achieve twice the result with half the effort. The advantage of Mi TV is that it has high cost performance, while the disadvantage is also very obvious, that is, there is no appearance design for low-end products, and they are basically common faces. Xiaomi TV can take advantage of the trend to innovate in appearance design and attract users with good industrial design.
Second, the artificial intelligence experience is not good, so we should continue to strengthen the investment in artificial intelligence to further improve the user experience. Artificial intelligence can further improve the user experience is recognized as the next outlet. Smart TVS are now gradually put into the arms of artificial intelligence, Xiaomi TV is one of them. Poor but millet television experience of artificial intelligence, such as the flagship of millet TV 4, although support intelligent language system, can do voice search and intelligent home appliance voice control, but requires the user to hold the language of the remote control button with the hand, and tell the remote control language, slightly operation is complicated, and there is the problem of speech recognition rate is not high, performance is relatively small.
By increasing the investment in artificial intelligence, Mi TV can solve the problem of speech recognition rate, near-field control to far-field control and voice service without relying on remote control and other third-party devices. It can judge according to sounds and sounds and collect accurate information expressed by users, so as to free users’ hands and improve users’ use experience.
summary
Smart TV sales in China reached 48 million units in 2017 and are expected to exceed 58 million units in 2018, showing a strong momentum of development in the smart TV sector in China, according to zhiyan.com. In the background of expanding smart TV market, there will be more manufacturers to fight for smart TV in the future.
In the future, in the field of smart TV, the current “2 VS 1” between Skyworth and Hisense and Mi TV may continue in the short term. But in the long run, with the sudden rise of Millet TV in the second quarter of the domestic smart TV shipments champion, will drive the development of the whole Internet TV brand, even let the Internet TV brand comeback. In the next few years the gap between Internet TV and traditional TV brands may gradually narrowed, Internet TV brand will win more smart TV market share, a traditional television and Internet TV brand will have a protracted war, then that is who is the teacher of the tiger in the field of smart TV.
Article/Liu Kuang public number, ID: Liukuang110, this article first kuang Venture capital network