TV sales in China fell 11% last year and thus recorded the first year of decline in the past few years, the main reason for the low-cost television brand.
The black market television in China is adversely affecting TV sales in China, dragging down TV prices and increasing the likelihood that many names in the industry will find it difficult to compete in China, according to the judgment. produced by the Nikkei newspaper.
By value, TV sales in China fell 11% last year and thus recorded the first year of decline in the past few years. The decline of the television market also became worse in the first quarter of 2019, the decrease of television sales reached 16% over the same period.
China is currently the world's largest TV market. But, more than 40 brands are competing for market share in a market, they must get used to the popularity of a variety of cheap TVs assembled from used TV components or even faulty components. with the generic name "cheap television" throughout China.
In an area just outside Guangzhou, China, a cheap television shop owner offered: "Do you want to buy this TV?" Inside his store, a few men were seen and compared to the prices of all the TVs in the store. The TV sold in the store looked very new, but no brand was seen.
According to the owner, the 65-inch liquid crystal screen TV is of Korean origin and he accepted to sell it for 3,000 yuan, or about 434 USD. This kind of TV price is only 1/3 of the price of the same type of TV product supplied by the big manufacturer to the market.
In the store, people see a lot of foam boxes containing brand logos of many big companies like Samsung Electronics or BOE Technology. In addition, there are many other boxes containing the company's resale errors in the black market, others containing LCD screens removed from used TVs.
An employee in the shop was checking the screen by lighting the lamp from behind to prepare to sell it to some TV dealers who visited the store.
On one street alone, one can count up to 50 stores that sell television components including electronic boards and LCD screens. The surrounding area has many shops specializing in collecting components and equipment – all areas look like a black market of industrial products.
Low-cost TVs produced in Panyu and some other places are sold in large quantities on Chinese e-commerce sites, which makes many criticize the possibility of market disruption. Most cheap TVs carry the logo of famous manufacturers.
The Chinese government used to have a campaign to clean up and deal with these types of businesses, but with what we saw in Pangyu it was found that entrepreneurs were actually adjusting themselves, not disappeared. Although they lost their online sales channel, they continued to benefit by selling television to poor countryside or selling non-branded products.