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Consumer Electronics |
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DVD Players 1H08 Shipments Drop In
China August 29, 2008 1H 2008 shipments of China's DVD players dropped to 6.7 million, with a monthly compounded change rate of -10%. The factors for the decline are as follows:
China's 1H08 DVD player revenues also declined to 3.33 billion Yuan, with a monthly compounded change rate of -10.06%.
Downward price pressures continue unabated. As prices go down, cost of manufacturing continue to go up, with the appreciation of the Yuan, raw material price increases, and export pressures. Vendors are targeting the low-end market, both in China and for export. As the low-end market heats up, Chinese domestic vendors also face DVD patent licensing fees, patents which multinational vendors own.
In 1H08, DVD players price below 500 Yuan are the most dominant in China. High-end products, such as portable and recordable DVD players, had the largest price decreases, but this did little to affect their market share. Mid to low-end products will continue to be important, as China's growing Tier 3 and 4 cities are price sensitive.
source: ccid consulting, July 2008 New DVD player categories have formed. In China, these include portable, recordable, Karaoke, and storage categories, with some helping to drive growth. Traditional shelf-top DVD players are still the mainstream in 2008H1, which accounted for 93.8% of total shipments. Thin, lightweight, portable DVD players, with its own LCD screen, enjoyed fast growth and were favored by younger Chinese consumers. By contrast, recordable DVD players, with its higher prices and relative lack of consumer awareness, had a very small shipment share.
source: ccid consulting, July 2008 China's winter snowstorm and Sichuan earthquake affect regional sales. This year's severe winter snowstorm and Sichuan earthquake negatively affected China's Central and East regions. Nonetheless, China's more developed North, East, and South regions continue to have majority shipment shares.
source: ccid consulting, July 2008 Consumer appliance stores are still the main channels. Consumer appliance stores are still the primary channel for DVD players in 1H08. Other channels are being developed and have a growth trend, such as IT marketplaces.
source: ccid consulting, July 2008 Chinese domestic vendors lead the market. For 1H08, BBK, Malata and Qisheng are still top three with strong advantages. In general, BBK has an overall strong product line. Malata focuses more on product differentiation, acquiring Karaoke technology early on and setting the bar for such product categories. Qisheng offers products with good quality at low prices. Following close behind are also strong performers, such as Philips and Nintaus, as they look to improve their product positioning and channel development. China's HD DVD formats will still need to have clarity. Panasonic has made significant inroads to local Chinese production of Blu-ray products, and the company has alliances with Hualu to do the actual manufacturing. Other vendors are gaining the necessary licenses for Blu-ray. However, the high definition DVD standards wars are still not settled yet in China. China is developing a number of its high definition standards, such as EVD (Enhanced Versatile Disc), NVD (Net Video Disc), and CBHD (China Blue High-Definition), formerly known as CH-DVD (China High Definition DVD). CCID Consulting expects that SD DVDs will still be the mainstream in China for the next three to four years. For more information Please contact us for these and other China-related data, information and products. Unless otherwise specified, all information provided is sourced from CCID Consulting. |
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