OFweek smart home network news was Sunac China Sun Hongbin, chairman of LeTV as one of the best assets of LeTV TV business, is facing great changes in internal and external environment.
Externally, sales of smart TVs have rarely experienced negative growth in the first half of this year, and panel and other parts prices have risen, which has squeezed the price space of LeTV's flagship price-to-performance manufacturers. From an internal perspective, LeTV has broken the “seven times†of Jia Yueting’s era. "Big business" linkage, for example, regained sales channels, which means that Liang Jun team needs to assume more responsibilities.
In addition, the evacuation of non-listed companies, including LeTV Sports, has caused LeTV to lose some of its content and its advantages in the membership system. A LeTV to new insiders told reporters that he believes that Liang Jun has so far mainly carried out organizational restructuring of the company. However, the adjusted LeTV may continue its momentum in the second half of last year and is still uncertain at present.
TV sales pressure
There is no doubt that LeTV’s new business behind LeTV’s TV business is Sun’s most valued asset when it joins LeTV. In addition to directly investing in LeTV’s new product, he personally appointed the financial controller of the company, and he will be responsible for the television business Liang Jun. “Support†has become the actual operator of LeTV.com. Sun Hongbin also bluntly stated that the LeTV IPO is to target American online giant Comcast, which currently has a market value of more than 180 billion U.S. dollars.
A person familiar with LeTV and the home appliance industry told reporters that domestic TV sales in the first half of this year showed a strong sense of foreign brands, such as sales growth of Sony, Philips and other manufacturers significantly. “At present, the entire smart TV plate is as big as it is, some are strong, and the other is bound to decline.†It pointed out that LeTV has shown signs of slowing growth from this year's performance, but it can still be stable in the top 10 of the industry. The impact that LeTV has experienced in the past six months is not as big as the business of mobile phones."
According to the sales data of this year’s “6·18′′†color TV set released by Yikang in the third-party home appliance data statistics agency, LeTV’s “6·18†sales performance this year fell by 57% year-on-year. The current week’s market share accounted for Nearly 6%. Overall, the data released in June of this year in the first five months of this year shows that the cumulative volume of retail sales of online color TVs has been declining year-on-year in the first five months of this year, and the total retail sales volume has dropped by 7.8%. One of the Internet TV platforms bears the brunt.
In view of the different pricing strategies adopted by each TV maker during such big promotional activities as “6·18â€, the “6·18†data cannot fully reflect sales strength, but the performance in this cycle still plays a role as a vane indicator. From this year's “6·18†price cuts and final shipments, LeTV’s main push size this year is between 40 inches and 45 inches, and the average price of the product starts at 2,000 yuan.
At the beginning of this year, LeTV’s new initiative took the initiative to announce that 2017 will achieve “big screen smart terminal hardware sales of 7 million to fight 8 million unitsâ€, but LeTV on the same day announced an announcement that the above sales have uncertainties. On July 10th, LeTV made a reply to the reporter of the 21st Century Business Herald that LeTV did not announce sales figures in the new aspect and it was disclosed by the financial report.
In view of the fact that the financial report did not disclose the specific subsidiary data in the first quarter of this year, LeTV’s new loss of 635 million yuan was the second largest subsidiary of LeTV. one. However, Liang Jun disagreed. As early as the end of last year, LeTV made a new claim that it would achieve full-year profit in 2017. This sentence was also written in LeTV 2016 annual financial report.
However, with the introduction of new shareholders, including Sunac. In a new product release in May of this year, Liang Jun’s views have changed. “The radical LeTV has returned.†But later, Liang Jun added that this “radical†is not to say that the subsidies are simple. At the conference, one of Liang Jun’s themes is that users can obtain free membership renewal through increased activity. Instead of packaged sales members and TVs.
Regardless of whether or not LeTV can achieve a sales target of 8 million, the LeTV business, which has doubled its sales volume in the past three years, is bound to slow down in 2017. It is hardly surprising that LeEco saw this year as a particularly important task in revitalizing existing users.
Reconstruction channels, content short board
Since the beginning of this year, Liang Jun has repeatedly stressed in public that the entire smart TV growth plate is not optimistic. Indeed, China's smart TV sales throughout the first half of this year ushered in year-on-year negative growth, and even there is no shortage of sales of traditional brand TV manufacturers are also falling, and Internet TV brands bear the brunt.
Want to "contrarian" and the music to the new need to rebuild its offline sales channels. “The channel of LeTV has encountered unprecedented pressure.†Liang Jun said, the pressure comes from the negative growth of the smart TV industry as a whole, and the rising cost of upstream components, including the panel, and his own dissatisfaction with LePar’s previous development. In response to this situation, Liang Jun said that LePar will be rebuilt in a grid-like manner (Lok as an affiliate-style offline retail channel).
It is reported that at present, LeTV's sales channels are broadly divided into three segments: Online, Gome and Suning, and regional chains. Currently, the proportion of channel revenue for these three segments is 30%, 20%, and 50% respectively. The online section includes the Jingshi and Tmall, both of which are equally low, except for the Leshi Mall.
For Internet TV platforms, content is vital because it means traffic.
"We think the current video site content is only two and a half. The current gap between iQiyi and Tencent's videos is extremely small. The other half is Youku: Youku has stepped up its content purchasing efforts since the end of last year, but its data is It is still necessary to wait until the first half of next year to observe whether the level is effective or not.†On July 10, an Internet TV platform responsible for content matching partners told reporters that LeTV video did not have absolute advantages in content.
The above-mentioned sources told reporters that compared with LeTV's video content, previous content from LeTV Sports was the key to attracting consumers. However, as LeTV lost the rights of broadcasting such as Super League and AFC Champions in succession, LeTV Sports members’ gold content was greatly reduced. The above copyright was taken away by LeTV, including PPTV, to new opponents.
As Zhang Zhao, who is in charge of LeTV, joins the LeTV Board of Directors, he has high hopes in the field of big-screen related content. In Liang Jun’s words, “LeTV is definitely the key to LeTV’s success in the future.â€
During this year's Shanghai Film Festival, Zhang Zhao is trying to explain the changes in LeTV’s film industry: “No longer define himself as a mere film and television companyâ€, but instead transforms it into an IP operating company that uses film and television content as its main media. Obviously the latter is a more consistent position with LeTV.
Liang Jun said at a recent LeTV Shareholders’ Meeting that “Our shift from a one-time transaction model in the traditional television industry to a model based on Internet user operations will gradually lead our revenue and operational entities to membership and advertising.†It is the difference between LeTV and competitors, but it is also the basic model of LeTV.
But so far, LeTV's so-called "ecological closed-loop" style of play has been used by major Internet TV manufacturers for reference.
"The essence of the Internet TV business is the traffic business." On July 10th, a senior PPTV told the 21st Century Business Herald reporter that at present, all major Internet TV manufacturers have different forms. For example, millet only has the hardware but does not intervene in the content. It also has music as such. At the same time doing hardware and content vendors, but behind these business models are based on traffic business.
The above-mentioned PPTV person told reporters that since LeTV simultaneously manipulates software and hardware, its software system cannot compete with other hardware manufacturers because of its competing relationship at the hardware level. This also means that the way LeTV can get large-screen users can only be sold through television. This is also doomed to a limited growth rate, and it is vulnerable to changes in the overall market environment and the cost of upstream components.
A millet television executive told reporters that although Xiaomi does not own video content like LeTV, its focus is on iqiyi. Both parties jointly sell members, and Xiaomi is also divided into hardware vendors. This means that LeTV's basic model is not mysterious.
Sun Hongbin bluntly stated that Sunac will make several returns on optimism for LeTV’s investment. However, LeTV has smashed hundreds of billions of financial innovations and it is impossible to profit from non-listed businesses such as video website content and even “quasi-shock†mobile phones. LeTV’s business has become the key to whether the entire LeTV system can regain the favor of the capital market. . This is also the biggest ante that Sun Hongbin has just entered LeTV.
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