BEIJING, June 2 /Xinhua-PRNewswire/ -- CCID Consulting, China’s leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong (Hong Kong Stock Exchange: HK08235), recently released an article on China’s digital photo frame market in 2008Q1.
With a Rapidly Developing Global Market, China’s Digital Photo Frame Industry is Gradually Activated
Digital photo frame entered China as a concept product 7 years ago. As a derivative product of digital camera and the Internet, digital photo frame has been accepted by more and more consumers. The demands in global digital photo frame market are exuberant in 2007, and the shipment in 2007 has broken through 10 million sets. But in China, digital photo frame emerged in the market as early as 2006, with an industrial chain started in 2007, and consumers have been contacting and understanding this new product since. Generally speaking, digital photo frame market is still at the initial stage.
Table 1: The Size & Growth of Global and China’s Digital
Photo Frame Market, 2005-2007
2005 2006 2007
Global Sales Volume
(Unit: 10,000 Sets) 22.5 211.6 1022.2
Growth Rate -- 840.4% 383.1%
China’s Sales Volume
(Unit: 10,000 Sets) 1.7 9.7 17.5
Growth Rate -- 470.6% 80.4%
Source: CCID Consulting, April 2008
Quality of Products Varies; Consumers Pay more Attention to Quality and Price
There are more than fifty digital photo frame brands in China. Different products have different qualities and prices. The major manufacturers’ brand effect has not played its proper effect, and the market is still in a state of fluctuation. Small brands’ digital photo frames adopt mimic panel with common quality, whose resolution is 480×234, image definition is not very good and price is low. Major brands’ products adopt high quality digital screen, with a resolution of 800×480 and relatively high prices, the quality and prices are higher than consumers’ psychological expectation for these products, which results in the sales volume of China’s digital photo frame market at a standstill, so many manufacturers have no choice but to focus on the mature overseas market.
Industrial Purchase is Still Sales Brunt, Terminal Market to be Developed
Digital photo frame has stepped into a fast development track in China in 2007. Samsung, Philips and ViewSonic launch many products; various brands’ agents start to roll out channels in China’s market. However, digital photo frame belongs to high-end consumer goods, and manufacturers don’t have sufficient cultivation to China’s market and lack necessary advertising investment and activity propaganda, which lead to consumers’ low recognition. Many consumers consider that digital photo frame’s function is single and its price is expensive, so consumers could not accept digital photo frame in short-term. Consumer group still centralizes in industrial purchase, which includes financial institutes, insurance institutes, petroleum institutes and government organizations. The share of industrial purchase accounts for 80% of China’s digital photo frame in 2007. Industrial purchase could not maintain digital photo frame’s long-term rapid development, so manufacturers should develop a terminal market.
Aigo Has the Largest Sales Volume in China’s Digital Photo Frame, Next are Samsung and ViewSonic
As for brand pattern, currently, China’s market is not mature, so industrial purchase has decisive significance to brand pattern; however, industrial purchase’s instability results in the change of market pattern. According to current development situation, Aigo, Samsung and ViewSonic have the dominant situation in China’s digital photo market, which account for 2/3 of the total market.
Table 2: China’s Digital Photo Frame Brand Market Pattern in 2008Q1
Ranking Brand Sales Volume Market Share
(10,000 Sets)
1 Aigo 3.6 34.7%
2 Samsung 2.7 26.3%
3 ViewSonic 1.9 18.4%
4 Philips 1.0 9.8%
5 GADMEI 0.7 6.5%
Others -- 0.4 4.3%
Total 10.4 100%
Source: CCID Consulting, April 2008
As for industrial purchase, Aigo acquires China Petrochemical Coporation’s purchase orders, and it has the largest sales volume in China’s digital photo frame in 2007. By means of the activity of China Petrochemical Coporation, Aigo further improves its brand popularity and reputation. Under powerful technical support, Samsung’s digital photo frame products have advanced definition and color expression as the aspects of photo and video. Because of functional innovation, Samsung plays an important role in China’s digital photo frame market. ViewSonic has cost advantage in raw materials purchasing. As important brand in display field, ViewSonic has good reputation; especially it adopts Nature Skin technology in digital photo frame, which makes the color more actual, so its cost advantage and technical advantage lay foundation for digital photo frame. ViewSonic has large development space in China’s market.
China’s Digital Photo Market Deserves Expectation in the Future
Generally speaking, China’s digital photo frame market will break through in 2008. The whole market’s demands will increase to 500 thousand sets; the size of home digital photo frame panel will expand to 8"-10". It is forecasted that digital photo frame will become the developing and application focus of small and medium panel market. China’s digital photo frame market will gradually trend to mature stage in future years; the demands and sales volume will have rapid growth; the enterprises in digital photo frame industrial chain will have great business opportunities. With product prices’ gradual fall, this rapid development trend will be more obvious and China’s market will have great development space.
About CCID Consulting
CCID Consulting Co., Ltd (hereinafter known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: HK08235), is directly affiliate to China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen, Wuhan and Chengdu, with over 300 professional consultants after many years of development. The company’s business scope has covered over 200 large and medium-sized cities in China.
Based on the major competitiveness of the powerful the industrial resources, information technology and data channels, CCID Consulting provides customers with public policy establishment, industry competitiveness upgrade, development strategy and planning, marketing strategy and research, HR management, IT programming and management. Her customers range from industrial users in electronics, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks. CCID Consulting commits herself to become the No.1 advisor for enterprise management, the No.1 consultancy for government decision and the No.1 brand for informatization consulting.
For more information, please contact:
Cynthia Liu
Coordinating Manager
CCID Consulting Co., Ltd.
Tel: +86-10-8855-9080
Email: liuyan@ccidconsulting.com
