"Really, General Liu’s life is not good. When I picked it up (the color TV industry), I won’t be able to take it.†Yang Dongwen, president of Skyworth Group, made a speech on Skyworth’s interim financial report on November 26, and vice president of Skyworth Group. Liu Weizhi, president of the color TV business unit, said.
Since the beginning of this year, the days of color TV companies have indeed been difficult, and the profits of many companies have fallen sharply. Under the leadership of Liu Yuzhi, Skyworth's color TV business has gone against the trend. In the first half of the fiscal year (April-September), Skyworth's domestic TV products achieved a growth rate of 1.2%, and the overseas TV business turned losses into profits.
In the interview with Liu Yizhi for more than an hour, he always smiled. In contrast to the "dark" color TV industry, the face of the president of Skyworth Color TV Business Unit showed more of his Skyworth Color TV and Skyworth Group have a well-rounded mind. "In the next three to four years, the color TV industry will face zero growth in the entire industry, and even negative growth in individual years. And Skyworth faces such an industry situation, only one word: grab!" Liu Yizhi smiled, he said that the domestic color TV business encountered the ceiling, Skyworth will “grab†the overseas market, “grab†the mid-to-high-end market and “grab†the intelligence. "But this 'grab' is definitely not a price war."
Plus internationalization
Since the second half of 2013, the domestic color TV market has gradually declined. This year, the downturn in the color TV industry is still continuing. According to Avi Consulting (AVC) monitoring, the overall sales volume of China's color TV market in the “May 1st†three weeks (April 14 to May 4) was 3.83 million units, down 10.2% year-on-year. In this context, Skyworth Color TV Division adopted a form of in-depth joint development with upstream panel suppliers, such as wide color gamut, four-color 4K and other products to significantly reduce costs, making Skyworth's overall product gross profit margin decline in other companies. Under, it has stabilized the comprehensive gross profit margin of Skyworth TV and even the entire group.
According to the Skyworth Group's mid-year report, Skyworth recorded a turnover of 18.48 billion Hong Kong dollars from April to September 2014, a year-on-year decrease of 7.7%, but the profit increased by 12.7%. The gross profit margin of the entire group's comprehensive products reached 19.5%, an increase of 0.4 percentage points over the same period last year. The gross profit margin of domestic TV products increased from 19.6% last year to 20.8%, and the gross profit margin of overseas TV products increased by 2.1%.
"But the average unit price has not been able to outperform the entire industry, all brands in the industry are declining, and Skyworth is no exception." Liu Yizhi said frankly. But he is more willing to use the "new normal" to describe the entire color TV industry. He believes that the demand for color TV market in the past two years is weak, and more is the "sequel" of a series of policies such as home appliances going to the countryside, energy-saving subsidies, and trade-in policies.
Liu Yizhi believes that there is not much room for new demand in the color TV industry, but the market demand is generally stable. "From the data released by the relevant state departments, there are still 250 million CRT TVs in existence, and the service life has exceeded 10 years, so there must be a replacement demand. So in the next 3 to 4 years, the whole domestic The product market relies on generations to support normal demand, with an annual demand of 45 million units, most of which comes from replacement. If you need to change 25 to 30 million units per year, you have to change it for ten years." Liu Yuzhi pointed out that the demand distribution of the color TV market in the future is: 70% from the replacement, 20% from the family to purchase more than one color TV, and 10% from the new TV. The downturn in real estate and the emergence of new technologies that cannot be promoted on a large scale have led to a zero or even negative growth in the domestic color TV market. Liu Yizhi believes that this period will be 3 to 4 years.
"For Skyworth, there is only one word for this situation: grab!" Liu Yizhi smiled and explained, "Only by grabbing the share, we can guarantee that the share of Skyworth is not lost or even lost in the market without growth. Can continue to expand."
In 2011, Skyworth launched its internationalization. It is understood that at present, Skyworth's overseas 8 subsidiaries are concentrated in Southeast Asia. In June of this year, Skyworth acquired the Xoceco South Africa factory for 30 million yuan, trying to expand the African market with South Africa as the bridgehead. At present, Skyworth is stepping up its market development in South America and Europe, adding more internationalization.
Liu Yizhi has a clear idea for the development of foreign color TV. He said that in the next three years, Skyworth International will be based on the OEM business and expand its own brand, so that its own brand will double from the current 20% to 40%.
"In the past few years, we will vigorously develop South American and African businesses, do well in emerging markets, and then do developed markets." Liu Yuzhi said.
In addition, Skyworth will solve overseas supply chain problems by acquiring or participating in factories. "Now we have the first step in South Africa. Before we had a collaborative factory in Thailand, we solved the supply chain problem in Southeast Asia. Next we will arrange supply chain foundries in Eastern Europe through equity participation," Liu said.
O2O channel blueprint after integration of white electricity
Among the major black power companies that have entered the big white power industry in a big way, Skyworth has entered the market late, but it has developed rapidly. The compound growth rate in the past three years has exceeded 55%. According to Skyworth's interim financial report, the company's white goods products achieved a turnover of HK$1.1 billion in the Chinese mainland market, an increase of 58% over the same period last year.
For Skyworth, what are the advantages of developing white electricity?
"This question is very sharp." Liu Yizhi laughed, but he quickly became serious. He told the author that in his view, Skyworth has three advantages in the development of white electricity: First, Skyworth's unique channel integration advantages; second, the talent advantage of Skyworth White Power team; third, compared to pure white electricity companies, Skyworth There is a cool open, in the smart family, more understanding of users.
With 3,800 community stores owned by Skyworth and 20,000 terminals and 16,000 dealers in China, Skyworth White is using its channels to spread the market at low cost.
After the integration of white electricity, Skyworth's channel development. Liu Yizhi also gave a clear answer: on the basis of the original channels, open online and offline, "white + black" at the same time, online and offline the same price.
As the support of O2O, Skyworth will build and transform Skyworth and Cool Open's official website on a large-scale strategy of “Skyworth + Cool Openâ€.
“At the same time, we will continue to build community stores, and the number of community stores will increase to around 4,000 next year. In three years, Skyworth will build 5,000 county and township flagship stores. Then use Skyworth, cool open official website, plus our Internet partners. , including Tmall, Jingdong, Suning Tesco, etc., using our 4,000 community stores and our 5,000 county and township full-product stores (flagship stores) to connect the future of O2O channels to create Skyworth's mesh sales structure Liu Zhitang described.
Layout intelligently mine user value
Under the attack of Internet companies, Skyworth put forward the strategy of “hardware + contentâ€.
Yang Dongwen said that Skyworth will use hardware advantages as an entry point to strengthen cooperation with content providers. In addition, the company will also cooperate with the content providers through the shareholding method when the capital allows.
In fact, in addition to content, Skyworth believes that embracing the Internet, online games, shopping malls and online education will also be the profit growth point of smart TV. The greater value of developing smart phones is actually mining the value of users behind intelligence.
Liu Yizhi said that Skyworth's smart TV development is focusing on two important indicators, one is the activation rate of smart TV, and the other is the number of active users of smart TV. The activation rate target is 10 million this year, and the number of active users is 5 million. If this goal can be achieved, Skyworth will be able to carry out the user value operation of smart TV users in the second half of next year, including video charges, including games, including e-commerce malls.
“At present, we have cooperated with Jingdong and Ali in the mall, and they will operate the TV mall. If we have 5 million active users, we can carry out advertising business with the advertising company and carry out the backward direction of smart TV. Charge." Liu Yuzhi said.
After the Internet TV in 2008 and the APP TV in 2011, Skyworth is currently focusing on the development of high-definition video games in the field of smart TV. "We are optimistic about TV games in the future. TV games are certainly there, but they are still trapped in low quality. The user experience is increasingly seeking the shock of big screen and high definition." Liu Yuzhi explained.
In addition, it is revealed that Skyworth will release its smart family strategy next month. In the future, Skyworth will also establish a smart home experience store in first-tier cities such as Beijing, Guangzhou and Shenzhen.
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