The foundry wants to make its own brand, Mega Chi, to bet on Smart TV.

The smart TV market will usher in new snatchers. A few days ago, the traditional color TV foundry Shang Shi shares formally announced that it will raise 3.67 billion yuan through non-public issuance of stocks, pushing its own brand of smart TV. According to industry experts' analysis, the advantage of Siu Chi shares is that it has rich experience in hardware production. However, at present, the competition in intelligent TVs is fierce. At the same time, the entire market is in a declining trend. It is very difficult for Siu Chi shares to cut into the market.

Siu Chi shares from the role of foundry

On June 18th, Siu Chi shares formally announced that the company will transfer Qingdao Haier and Oriental Pearl (renamed BesTV, hereinafter referred to as BesTV) and its parent company Shanghai Culture, Radio, Film & Television Group Co., Ltd. (hereinafter referred to as Wenguang Group). ) The issuance of non-public stocks raised funds of 3.67 billion yuan for Internet TV business projects.

Siu Chi is the largest color TV ODM manufacturer in China (original design manufacturer), mainly providing OEM production and manufacturing to domestic color TV manufacturers, and has the capacity to produce 14 million TV sets and 15 million set-top boxes annually.

In accordance with the vision of Sie Chi shares, the company will work with BesTV and Qingdao Haier to create an Internet TV ecosystem with "content+terminal+platform". Siu Chi was responsible for the production of color TV hardware. With BesTV being one of the seven Internet TV licensees in China, it promoted its own branded smart TVs, enriched the content of film and television dramas, and relied on Haier's global sales and service network to make products quickly available to consumers. Realize sales.

The plan is to develop 10 million Internet TV monthly active users within three years through a tripartite cooperation model, and provide long-term benefits by providing users with value-added services.


Smart TV market has few opportunities

"The transition into smart TV is a good choice, but the timing is a bit late." Hong Shibin, an expert in network marketing of the China Internet Association, pointed out that in addition to the traditional TV giants, newcomers like LeTV, Xiaomi and Peng have already To achieve a certain market size, the entire industry is in a more intense and saturated melee.

After the "618" E-Commerce Wars passed, color TV manufacturers collectively launched all kinds of sales. Skyworth Cool open from 0:00 on June 17 to 1200 on the 18th, in the Jingdong platform, cool open U55 single product sales volume first; Hisense in the Jingdong platform Hisense TV sales first; music as June 18, LeTV Super TV sales exceeded 5.5 Million Taiwan, in the Tmall + Taobao platform, sales and sales are ranked first. The intense competition in color TV market is evident.

For Siu Chi shares, in addition to fierce market competition, the overall industry decline is also a major hindrance factor. Dong Min, general manager of Owen Cloud Network Black Power, pointed out that in the next 7 months, it is expected that there will be a downward trend in six months. Li Dongsheng, Chairman of the TCL Group, pointed out in an interview with a reporter from Beijing Commercial Daily that in the future, the growth of color TV companies will be squeezed growth, and they will need to go to someone else’s plate to grab something.

"These factors will seriously restrict the development of Sci-Tech's development in the smart TV market, but it is not without chance." Hong Shibin pointed out that in the face of competition from new brands such as Hisense, Skyworth, TCL, and LeTV, in terms of brands, content, channels, etc. It is difficult for Zhao Chi to face head-on confrontations. However, as a representative of color TVs, Zhao Chi shares in the cost of TV hardware must be lower than other color TV manufacturers. To seize this advantage and use ultra-low prices to market, there is still a chance to occupy part of it. market.


Transformation is forced by the pressure of business survival

For the launch of its own-brand TV, Siu Chi shares said in the announcement, mainly due to the slowdown in demand for ODMs from manufacturers. However, in the eyes of industry experts, the pressure is mainly on the pressure to reduce or even eliminate the foundry business.

This pressure is not limited to the color TV industry. In 2014, Ningbo Baojie Electric Appliance Co., Ltd., Ningbo Danhe Electric Appliance Co., Ltd. and Ningbo Portland Electric Co., Ltd., which were engaged in the manufacture of refrigerators and washing machines, also declared bankruptcy. At that time, industry rumors were the company’s capital chain break, but in the opinion of Yao Youjun, vice president of Oma Electric, the real reason was that there was no market.

"When the home appliance market as a whole is good, the branded home appliance business will entrust some orders to the foundry business because of capacity problems. When the market is in a downturn, the brand companies will do the subtraction. The first order that was cut is the order of the foreign party. Brand companies, the impact is not, nothing more than a scale reduction, a small part of the profit, but for the foundry, it is the difference between life and death. "Yao Youjun pointed out.

At this stage, the domestic TV market is not optimistic about the momentum of development. In 2014, it suffered the first negative growth in China for 30 years. The total sales volume was 44.61 million units, a year-on-year decrease of 6.6%; the sales amount was 146.2 billion yuan, a year-on-year decrease of 14.5%.

The current status of this industry has also directly affected the development of Siu Chi shares. The Beijing Business Daily reporter consulted Zhao Chi shares in the past three financial reports also found that its revenue and net profit growth rate continued to decline. In 2012, Zhaochi's revenue and net profit were 6.457 billion yuan and 536 million yuan respectively, an increase of 44.34% and 31.58% year-on-year. In 2013, revenue and net profit increased 4.94% and 18.56% respectively year-on-year; Net profit increased by 4.89% and 4.68% year-on-year. It can be seen that both the revenue and net profit growth rate have dropped sharply.

In Hong Shibin’s view, SMG’s entry into smart TVs carries a major transformation of the company, but the road ahead is very difficult. If you break through the downturn in the industry and the siege of your peers, Siu Chi shares will gain a new and broad market. If you fail, it means that these investments will be frustrated and will no longer support the company's future transformation and development.

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