Chinese Color-TV Industry Has Stepped into a New Stage of Upgrade and Transformation

Executive Vice President of CVIA  Lin Yuanfang

In the new century, three hot spots emerge in global consumer electronics: video, mobile and wireless technologies. With the development of digital technology, network technology and informatization, information display has become an important part of information ecological chain. New changes have taken place in the industry structure, product structure and personnel structure etc in China’s color-TV industry, which has stepped into a new stage of upgrade and transformation. Facing new pressures and challenges of capital, technology, market, matching industry and operation, we should pay more attention to new characteristics and new problems.

Structure Adjustment Is the Current Primary Task

At present, color-TV market is in the process of upgrade and transformation of digitalization, flat panel, large screen, high definition, energy saving and environmental protection. With the fast development of FPD industry, flat panel TV set were produced 25 million sets globally in 2005, and the figure is expected to reach 54 million in 2006. Flat panel TV has entered market quickly, and it has become the mainstream product in urban market in China and new competition focus in international market.

However, the manufacturers in China do not prepare fully in the huge market and do not recognize FPD industry is combined with vast assets, intensive technology and plentiful talent. The original integrative industry system was broken, which features CRT color TV as the main part, accessories as the support, comprehensive size and variety, improving technology and some scale, therefore, the past competitive advantage of CRT products is gradually undermined.  

These disadvantages disable CRT color TV industry to compete in a new round of market competition and develop into upstream of the industry. The manufacturers are unable to upgrade industry structure on its own due to huge investment, thus color TV companies in China have to return to low-grade assembly line of flat panel industry chain. Without the technologies of core parts and lack of core resources in industry chain, it is impossible to master key technological resources, especially design technology of professional IC, thus we are weak in intellectual property and that core technologies are controlled by others and key technologies and accessories depend on foreign countries is not changed.

Diversification Brings in Diversified Demands

In the perspective of present technology and cost, CRT、TFT-LCD、PDP and OLED have their own uniqueness, feature advantages and disadvantages and would develop fast in their own sub-divisible markets. Diversified display terminal market structure brings in different demands and this is beneficial to technological innovation and development of new display industry and market prosperity, thus a new economic growth point would be created, and consumers can buy cheap but high-quality video products.   

Viewing from market shares of different technological types of TV, flat panel CRT TV could not be overstepped in price and is still the mainstream in market, but it tends to slow down. LCD TV increases fast and nearly reaches CRT TV in sale income. It is expected in 2007, the sale of flat panel TV will be over 8 million sets and the total sale income of LCD TV will be over 50 billion Yuan, but LCD TV mainly focuses on large screen LC-TV. PDP TV market is relatively stable, for in display products of 42 inch to 60 inch, PDP TV is advantageous and dominates the market, but it still faces challenges from large screen LC-TV. In over 60-inch display market, micro-projection and LED flat panel hold a seat.

At the same time, we have to notice that technology, market and application of new -generation products could not be finished once due to national conditions in China: co-existence of dual economy and disparity between the east and the west, co-existence of CRT and flat panel TV for a long time and co-existence of analogue technology and digital technology. Any display terminal could not hold the market. Market share of each terminal depends on its exploration of unique advantage and market fluctuation.

Digital TV Creates New Market Opportunity

　　With fast development of China’s economy and improvement of national purchasing capacity, consumer market in China restart in an all-round way. The increasing urbanization also promotes color TV sale in villages, towns and city fringe areas. Urban consumption structure is now in a stage of upgrade and transformation. The new-round house system reform would create new market demands and upgrade demands and polices of constructing new countryside gradually turn potential demand in the past into effective demand at present.

IDC report points out, TV sale will increase from 170 million sets in 2003 to 196 million sets in 2008, and sale income will also rise from 61 billion US dollars in 2003 to 86 billion US dollars in 2008, besides, digital TV will account for 60% of the total TV with the sale income of 70 billion US dollars. With the broadcasting of digital TV programs, in general, color TV market in China will keep stable development considering bright prospect influenced by huge development of China’s education, successful bid for Olympic games and would expo once it is permitted to receive satellite programs personally and 3G products emerge in quantity.