Attracting Consumers DVD Nuggets Rural Market at Low Prices

Although in recent years, DVD players have been trying hard to innovate in terms of functionality and trying to change the status quo. However, from the actual situation, the first-tier and second-tier cities have become sunset products. However, in recent days, some provinces and districts issued the "Implementation Plan for Subsidy Products for New Home Appliances to the Countryside" clearly stipulating that in addition to the existing nine subsidy products for home appliances to the countryside, one can also choose a new variety, and the new six The products include DVD players, which are financed with subsidies of up to RMB 65 each. Experts said that home appliances may become a good opportunity for DVD players to expand their rural markets.

The countryside is a big cake

In cities where consumers are not in love, entering the rural market may be a good choice. Different from the splendid industry around the millennium, in recent years, the market for traditional DVD players has suffered from “Waterloo”.
The reporter learned that due to the low barriers to entry for DVD players, there have been a large number of small and medium-sized enterprises in the most brilliant period of the industry, which has made market competition extremely fierce, and prices are the main chips for competition. "The price of a DVD player has dropped from a few thousand dollars to three or four hundred dollars, and it took only two or three years." Chen Lixin, secretary-general of the China Electronic Audio Industry Association, told a reporter from China Electronics News.
Excessive competition and low barriers to entry have reduced the profits of domestic DVD players. This has made it difficult for many thin companies to maintain a long-term price war, and has allowed some companies that have made money to continue investing in the company. The industry lost confidence. The reporter learned that through the development of the first decade of the 21st century, the price system for DVD players has become more transparent, and the era of industrial profits has gone.
In this context, DVD players collectively choose to focus on the low-end market as the main outlet. According to research data from Yikang, the leading product of China's DVD player market in the past two or three years is mid- to low-end products with a price of less than RMB 500. Currently, the market share of medium and low-end products continues to maintain its leading position. Among them, the products with the price ranging from 250 yuan to 300 yuan have the largest sales volume, reaching 630,000 units last year, which is the only positively increasing price range product for sales.
Peng Ye, the director of Zhongkang Market, told the China Electronics News that traditional DVDs will not disappear completely and that the low-end market still has great potential for traditional DVD products. DVDs are still promising for low-income urban groups and rural areas.
Coincidentally, just a few days ago, the relevant departments issued the "Implementation Plan for New Types of Subsidy for Home Appliances to the Countryside". It is determined that each province and city can choose a new variety in addition to the existing nine subsidy products for home appliances to the countryside. The newly added six categories of products include DVD players, with financial subsidies of up to RMB 65 each. At the same time as Huimin, home appliances to the countryside will undoubtedly become a good opportunity for traditional DVD to expand the rural market.

The city is nearly saturated

At this stage, it is in line with the status quo of the industry to focus the sales of DVD players on the rural market. The reporter learned that the sales volume of DVD players in China's first- and second-tier markets and global markets have dropped sharply over the past few years. According to the forecast of research firm Strategy Analytics, the sales volume of DVD players in the world was 33 billion US dollars in 2009, which was lower than the previous year. 9%, is expected to drop by 12% year-on-year in 2010. According to data from Yikang, the cumulative sales volume of the domestic DVD player market in 2009 decreased by 30% year-on-year, and retail sales decreased by nearly 40% year-on-year.
There are many reasons why demand for DVD players has decreased in these markets. On the one hand, in recent years, the home display market has been continuously upgraded, and traditional CRT TVs have gradually been replaced by flat-panel TVs. The resolution of TVs has gradually become mainstream in high-definition 720P and full-HD 1080P. As the display resolution of the traditional DVD player 576P cannot meet the output requirements of high-definition devices, Blu-ray disc players, high-definition players, and home theater PCs with high-definition output capabilities gradually erode the market share of traditional DVD players.
On the other hand, the functions of display devices have also been continuously expanded and upgraded in recent years. Flat-panel TVs and projectors with built-in DVD optical drives are commonplace, and the increased costs are almost negligible, thereby merging the market of traditional DVD players through the compatibility of functions. Share.
In addition, with the rapid development of Internet technology, rich network resources, convenient download methods, and relatively low costs, network download has gradually become the main way for many users to obtain film sources, which poses a threat to the traditional DVD industry. Of course, the mobile playback devices with huge storage space that have arisen in the first-tier and second-tier markets have also adversely affected the sales of DVD players.

Timely transformation is the way out

In the face of a shrinking DVD player market, many DVD players have adopted a diversified strategy to reduce market risks and have invested in relatively high-margin small appliances and mobile phones. The companies that have persisted in the DVD player industry and have fought in the rural market are also only delaying their efforts. To gain recognition in the market, it is necessary for urban consumers to maintain sufficient attention.
The reporter was informed that in order to reverse the recessionary situation of the DVD player market, many CD player companies have stepped up their R&D efforts on high-definition products and accelerated the popularization and promotion of the high-definition DVD player market.
In recent days, traditional DVD player companies such as Malata, Jieke Electronics and Qisheng Electronics have jointly established the China High-Definition DVD Player Industry Alliance in Shenzhen and launched a high-definition internet player for upgrading traditional DVD products. In addition to both VCD and DVD functions and high-definition video playback capabilities, high-definition Internet video players can also achieve network TV broadcasts.
“These products are the latest products that we have introduced in response to changes in the market and are able to meet the needs of ordinary family consumers.” Zhong Honghui, general manager of Dongguan Qisheng Electronic Industrial Co., Ltd. told the “China Electronics News” reporter that not all consumers can afford it. An expensive Blu-ray disc, so these new DVD players have their market. Moreover, downloading a high-definition movie also takes a long time under the current conditions of internet bandwidth, so there is a market for our upgraded products.
Chen Lixin said that from the present perspective, if we want to realize the once again brilliant DVD industry, China's DVD industry must establish a core technology industrial chain and create its own technical standards.