The LED-backlit LCD TV will lead to a reshuffle in China’s color TV market

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China’s color TV market is booming and the market growth potential of local Chinese brands is phenomenal. This is because the reputation of local Chinese brands is increasing, with lower prices, as well as the rapid upgrades of the CCFL-backlit LCD TV and the LED-backlit LCD TV, these products are very attractive for consumers who have not yet purchased a color TV.

In 2010, the competition will become more and more intense in the TV industry. The main reason is that non-Chinese brands including major vendors from Europe, Japan, and Korea can increase their market shares by slashing prices as their procurement costs reduce. Also, local TV brands in China have raised the in-house manufacturing ratio of modules, in addition to purchasing TV panels from Taiwan panel makers. Moreover, with the introduction of LED backlight modules and production capability of LED-backlit LCD TVs, China can maintain its market share, although limited to lower-priced and entry-level products. Mid- and high-level products are still largely dominated by higher quality products from international brands.

The market share of international brands accounts for about 30% of China’s TV market. Driven by the new wave of LED-backlit LCD TV trend, market share of international brands are expected to post remarkable growth in 2010 and 2011, and the price of the LED-backlit LCD TV is likely to drop by more than 20%.

In this case, the market shares of international TV brands and China’s local TV brands will fluctuate substantially. Different marketing strategies in promoting the LED-backlit LCD TVs will also influence the sales performance of non-LED-backlit LCD TVs.

After all, the LED-backlit LCD TV is a highly-popular item. However, technical levels of each maker vary. If the quality of a vendors’ LED-backlit TV falls behind that of other vendors, it will affect the sales of other products by the same vendor. Therefore, every brand vendor has to be cautious in introducing new models, unless it intentionally targets the ultra-low-price segment.