Excessive competition harms color TV industry
15/7/2003 17:53
Oversupply and excessive competition in the domestic color TV market
have greatly narrowed profits of TV manufacturers and do harm to the whole color
TV industry, eastday.com reported today.
Intensive price wars have dealt a
heavy blow to the domestic TV manufacturers.
The ordinary 21-inch color TV is
sold at 598 yuan (US$72) and 15-inch liquid-crystal TV is priced at only 2,890
yuan in the market.
"We only earn 10 yuan of profit on average by selling
one color TV," said Huang Hongsheng, board director with the Skyworth Group, one
of the leading TV manufacturers in China.
"Color TVs are oversupplied in the
market, with only less than one-twentieth of the original more than 200 domestic
TV manufacturers surviving to date," Huang said. Foreign TV producers' entry to
the domestic market such as Sony, Samsung and Panasonic has greatly threatened
domestic peers, he added.
Household appliance retailers such as Guomei
Electronics Appliances Co Ltd, Wal-Mart and Nanjing Suning Electric Appliances
Group sparked large price cuts on color TVs, harming the original pricing system
for color TVs, Huang said.
"We boasted total production values of 9.5
billion yuan last year, but our profits reached only tens of million yuan," he
said.
"Researching and developing high-end TVs together with foreign
manufacturers is the only way for us to survive, and we are currently focusing
on developing high-definition healthy modes," Huang said.
They will stick to
developing high-end models by investing more in researching TVS with new
functions and technologies, he added.
Wendy Zhang/ Shanghai Daily news
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