BEIJING, Aug. 7 /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 a report on sales volume of China’s LCD private brand market in 2008Q2.
The sales volume of China’s LCD private brand market in 2008Q2 reaches 2.573 million sets in 2008Q2, down 5.4% year-on-year. DIY market’s growing space was being pushed out: on one hand, notebook market grows rapidly, which snatches DIY’s important user group -- college students; on the other hand, price fall in brand PCs has also threatened the DIY market. As for LCD sizes’ distribution, the share of 19LCD is 65.3%, >19LCD’s share is 19.3%, up 157.4% year-on-year, which becomes vane of future LCD market.
Table 1: Sales Statue of China’s LCD Private Brand Market in 2008Q2
Size Volume Sales Volume Share Volume Year-on-Year
(10,000 Sets) (10,000 Sets) (10,000 Sets) Growth Rate
15 1.2 0.5% -41.9%
17 38.4 14.9% -66.8%
19 167.9 65.3% 24.5%
>19 49.7 19.3% 157.4%
Total 257.3 100.0% -5.4%
Source: CCID Consulting, July 2008
In 2008Q2, the shrink of market space heat up manufacturers’ competition. With major brands expanding their market presence through price cuts, lives of second line manufacturers become increasingly difficult, while they alo need to face pressure from the deficiencies of large scale production’s cost advantage and upstream supply and negotiation advantage restrictions. Although upstream panel’s prices rise in 2008Q2, RMB’s continuous appreciation makes up this factor and LCD market’s terminal price decreases by a large margin. 19LCD wide screen price decreases to 1,393 Yuan from 1,607 at the beginning of 2008; >19LCD wide screen price decreases to 1,953 Yuan from 2,094 Yuan at the beginning of 2008.
It is forecasted that price drop is still the important trend of China’s private LCD market in future years. Price system’s stability will be impacted by many uncertain factors in different periods. In order to become successful, manufacturers need to adopt the right strategies, such as anticipation of price trend, familiarizing supply of upstream panels and downstream feedback, and active price strategies. Meanwhile, manufacturers should avoid negative influence excessive price competition brings.
Table 2: Price Trend of China’s 19 and >19LCD, Jan. 2008 to June 2008
RMB Width 1 2 3 4 5 6
(Yuan)
19 Normal 1710 1701 1696 1651 1725 1666
Wide 1607 1588 1544 1467 1436 1393
19
Collection 1626 1609 1562 1487 1455 1414
>19 Normal 4318 4246 3994 3087 4048 2340
Wide 2094 2062 1948 1920 1836 1953
>19
Collection 2196 2175 2047 1963 1874 1961
Total 1727 1712 1670 1591 1551 1543
Source: CCID Consulting, July 2008
Three factors -- Upstream panels’ technical support, downstream manufacturers’ promotion and consumption demands’ continuous release drive wide LCD’s rapid development. With upstream 7th and 8th generations’ panels’ under production, panels have more flexible specification size. Panel manufacturers pay more attention to panels’ performance, now TN panel incision presents new situation, the market enters 20, 22 and 24 wide screen era; consumption demands drive wide screen to become mainstream. With entertainment, industrial application and offices’ demands’ rapid development, especially HD TVs’ and films’ increasing popularity and PC performance’s improvement, users’ demands for 16:9(16:10) wide screen grow rapidly. Compared with mainstream 4:3 LCD, wide screen has more advantage in multimedia presentation, daily and commerce applications; as for consumers, wide screen’s cost advantage is obvious.
Table 3: Sales Statue of China’s 19 and >19LCD Private Market in 2008Q2
19LCD >19LCD
Sales Volume Sales Volume
(10,000 Sets) Share (10,000 Sets) Share
Normal 14.2 8.4% 1.2 2.5%
Wide 153.7 91.6% 48.4 97.5%
Total 167.9 100.0% 49.7 100.0%
Source: CCID Consulting, July 2008
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: 8235.HK), is directly affiliated with 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 major areas of competitiveness: industrial resources, information technology and data channels, CCID Consulting provides customers with public policy establishment, industry competitiveness upgrading, development strategy and planning, marketing strategy and research, HR management, IT programming and management. CCID Consulting’s customers range from industrial users in electronics, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks. CCID Consulting commits itself to becoming the No. 1 advisor for enterprise management, the No. 1 consultancy for government decisions 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
