Rely on the low-cost strategy to seize the omni-channel retail volume first, who will attack Xiaomi?

Image source: Visual China

Image source: Visual China

After five years in the smart TV market, Xiaomi TV announced last week that it topped the Chinese market.

On Aug. 28, Xiaomi TV held a special press conference in Beijing. According to Wang Chuan, co-founder of Xiaomi TV and director of Xiaomi TV, it won the top sales volume in China in the second quarter of this year, citing data from Oviyun. Wang Chuan also said that in the second half of the year will increase channel construction, strive to win this year's first-year shipments.

Ahead of the launch, Xiaomi also released its first earnings report since its IPO, with figures showing global sales of Xiaomi TV in the second quarter of this year up 350 percent from a year earlier. In the Xiaomi TV team's official publicity plan, "Xiaomi TV leaps to the top of China" four big black characters are very eye-catching.

For a time, the industry has been questioning this.

Controversial "China first"

"too fake, that press conference scene," one of the home appliances media who attended Xiaomi TV's Aug. 28 event told Phoenix New Media Science and Technology. In this person's view, a quarter of the sales of the first can not represent the full year. At the same time, skeptics argue that the lack of specific sales and sales figures is not convincing enough.

According to public data, in 2017, the global sales of China's four major color TVs TCL, Skyworth, Hisense and Changhong TV exceeded 10 million units, and the family exceeded Xiaomi. Although Xiaomi TV has achieved the first omnichannel in the Chinese market, it has promoted itself as “China’s No. 1” and some have been too out of context.

In fact, this text game millet TV is not the first time to play.

As early as May 2015, Xiaomi TV also published a message on its official Weibo. “According to the authoritative data of the smart TV network, Xiaomi TV has become the number one smart TV brand with the fastest shipment! !"

At that time, the so-called smart TV network did not have any influence in the industry itself. Therefore, after the release of Weibo, another old-fashioned color TV industry giant Hisense quickly published an article titled "30 Days First" on Weibo. Xiaomi TV has blown up this article, and it is the first to report the so-called shipments of Xiaomi TV.

His article at the time said that the sales data quoted by the website was only from Taobao, and it was indeed biased to be known as “the title of the throne” and “beyond all brands at home and abroad” by a single channel.

Around the year 2015, the Internet television industry has never stopped talking about "who sells the most." During the Eleventh Anniversary of 2014, Millet and Lenovo called out "No. 1 in double-eleven TV sales" and Skyworth joined the fray.

This year, however, the TV circle's self-proclaimed No. 1 marketing chaos still hasn't stopped. During this year's World Cup in Russia, Hisense put up the slogan " Hisense TV, China First" in an attempt to use the label " First" to position itself and build consumers' minds.

So, is Xiaomi TV the first in the second quarter of this year?

Seize the market by low price

"from the data we have at present, it is true that Xiaomi is already the largest retail volume in all channels." Yang Yisheng, a senior analyst in the home appliance industry at Gfk, a leading third party research firm, said in an interview with Phoenix New Media Science and Technology.

He believes that this year's big increase in sales of Xiaomi TV is partly because it has eaten into the market gap after Letv's withdrawal, and on the other hand, it is similar to Letv TV in the past and relies on cheaper prices that are more advantageous than its peers to quickly seize the market.

The above analysts said that Xiaomi and Letv's playing rules are fundamentally different. Letv's hardware was sold below the cost price, while Xiaomi's was not the same. Its hardware did not lose money, and it also made profits.

Xiaomi surveyed industry analysts last year, who said the average price in the 32-inch small screen smart TV market was more than 1,000 yuan, and that Xiaomi needed to sell for less than 1000 yuan if it wanted to move. Then in September last year, Xiaomi launched the 32-inch Xiaomi TV 4 A, selling price 999 yuan. This popular style helped Xiaomi quickly seize the market.

This approach is similar to the red rice mobile phone. Xiaomi TV uses Internet thinking, online channels mainly rely on official website direct sales, offline is based on Xiaomi home, compared to traditional color TV manufacturers, Xiaomi has almost no channel premium.

On August 19, the " Analysis Report on Home Appliances Online Shopping in the First Half of 2018" jointly released by Saidi Research Institute of Ministry of Industry and Information Technology and China Electronics News showed that Xiaomi won the " Sales Champion" of the online color TV market in the first half of 2018, with its share soaring to 17.4 % from 5.5 % in the previous year.

However, the online shopping report pointed out that Xiaomi's low-price strategy is only to seize the low-end brand share, its average price of less than 2,000 yuan determines that it can not become a sales champion, nor has it caused too much for Hisense, Skyworth, TCL and other brands. Shock.

Who's gonna sniper millet?

"Xiaomi's success is not essentially a success of a product or technology, but to a large extent a success of a marketing model." Household appliance industry observer Liu Budun said in a recent article questioning Xiaomi TV China first.

On the other hand, Xiaomi TV has not reduced its quality control problems behind the large-scale growth in sales by relying on low-price strategies. In recent years, quality problems such as light leakage and bad screens on Xiaomi TV screens have repeatedly been complained by consumers.

The reason is that some analysts believe that from the current new products released by Xiaomi, its overall technology is still at a relatively early stage, without its own core technology. This aspect has led to poor quality control of its products, and on the other hand has limited the impact of Xiaomi TV on the high-end market.

Recently, several media reported that Huawei, OV will enter the smart TV market in the near future. OV has responded to deny, but Huawei is indeed a smart TV layout for a long time, this is a more important gateway to its Internet of Things strategy, and its Heise chip has already been provided to many TV manufacturers such as Hisense.

Phoenix Network Technology has recently learned from Huawei that Huawei will enter the smart TV market through the glory brand. As an Internet mobile phone brand independent of Huawei, Glory has been Xiaomi's most powerful competitor in China's smartphone market since its birth.

According to data from Sano, the overall domestic mobile phone market ranked fifth in the first half of this year. Like Xiaomi, Glory also focuses on young users, backed by Huawei's strong R & D strength and Haisi chips. Whether it's a price war or marketing, Glory will not fall behind Xiaomi.

After Letv withdrew, it was also time for China's smart TV market to have a sniper who could pose a threat to Xiaomi TV.

[from Phoenix Science and Technology, by Liu Zhengwei]

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