Where is the livelihood of the Internet TV brands playing their own games?

With LeTV continuing to drop in sales, the new LeTV management team has once again ushered in division, Internet TV brands have once again been pushed to the cusp, and the competitive landscape and brand structure of the TV industry for several years will also face new changes. In fact, in addition to LeTV, the days of storms, micro-whales, popularity, loyalty, love of mangoes and a number of Internet TV brands have not been satisfactory this year, and the prospects are even less optimistic. It can be said that since entering 2017, the Internet TV brands have experienced a declining trend. Therefore, people in the industry will refer to 2017 as the “out-year of Internet TV”. Internet TV brands cripple themselves Since LeTV first launched the "919 Music Fan Festival" in 2012, LeTV has been the protagonist of TV promotion since September of this year. However, this year, LeTV has barely made a sound. According to Ove Cloud's monitoring data, in the 39th week of 2017 (September 18 to September 24), the sales volume of LeTV is no longer in the top ten. The top ten list has only two Internet brand televisions. In another storm of Internet TV brands, net profit fell by 16.64% year-on-year in the first half of 2017, and 2 million sales plans set at the beginning of the year only completed 350,000 units, and it has been determined that it is impossible to complete the annual target. In March this year, Microwhale was exposed by the industry as a loss of more than one billion yuan. Although micro-whales are not only internal data of listed companies, they are not optimistic about the development of the Internet TV brands. In addition, a large number of veteran newcomers, including popular, professional, and mango, have not been spared in the context of the overall drop in Internet TV brands. The market movements and promotion of related companies are sluggish and no longer alive. It can be said that the good days that belong to the Internet TV brand are completely over, and new coordinates must be found. Not being killed or being killed by yourself At present, the Internet TV industry is experiencing a period of low tide. It has to be guessed whether Internet TV brands that once dared to compete with traditional color TV giants can continue to fight? What makes Internet TV brands fall from the altar? Internet TV Is the business model that the brand has been proud of, can it continue? The thing must be rotted first, and then the worm will be born. The Internet TV brand camp suddenly changed after LeTV collapsed. Its fundamental reason is that its competitiveness has not yet been tempered. It is busy rushing the market with low-cost models and traditional color TV sets, ignoring the internal strength of the game. Once the market troubles, it immediately The prototype will appear. First of all, the "hardware free or low price" model is not green and yellow. LeTV is the creator of Internet TV, and also created a new "hardware free" game, followed by internet TVs like millet, micro whale and storm. However, LeTV’s promotion is based on member subsidies + hardware bundling. As a result, both the hardware and the member’s business are losing money. This is “double loss”. The failure of this model began at the end of 2016. The prices of raw materials and panels upstream have risen. Internet TV has also been unable to withstand the pressure to begin to increase prices. The prices of brands like LeTV, Storm, and Micro-Whale are all around 5-10%. Consumers choose Internet TV as their low price. Once their low-cost advantages are gone, what kind of Internet TV products haven’t differentiated their characteristics to consumers? Second, financing and burning money can hardly support the brand's long-term development. The biggest feature of Internet companies is the development of financing. When Internet TV emerges, it is accompanied by financing “burning money”. Because it is not hard earned money, spending money is also relatively generous. For example, the micro-whales had lost an average of 800 yuan in sales of a TV in 2016 due to huge advertising investment, including hiring celebrity spokespersons. After all, financing “burning money” is not a long-term development plan for the company. Once the venture capital organization finds its loss or business has not improved, it will stop investing money. This unhealthy development model is destined to make Internet TV brands harder to go further. Third, the supply chain is short and fragile cannot withstand external shocks. As we all know, many Internet TV brands do not have their own key links in the supply chain such as R&D, production, quality inspection, and after-sales service. All of them rely on OEM production and e-commerce platform sales. The TV products produced by OEMs have no difference in selling points, and there is no strict quality control. Once there are quality problems, there is no official after-sale maintenance service. At a low price, consumers will not care too much about product features, appearance, or even after-sales repairs. However, if the consumer counts down for a long time, they will abandon the product. However, Internet TV brands are busy arranging money and then rushing to market with low-cost and traditional TV brands, so it is worthwhile to consider the issue of enhancing the competitiveness of the supply chain. Even after grabbing a certain market share, they did not think of exercising "internal forces." How can such a fancy corporate model resist the external disturbances? At present, smart TVs have become the trend of the whole industry. Traditional home appliance companies are also pushing smart TVs. Their smart functions are not even weaker than those of Internet TV brands. In the past this year, Internet brands stirred up the situation in the market and accelerated the revolution in the entire television industry. Next, the two camps of traditional color TV brands and Internet TV brands have come together on one track, so the competition is the technical innovation and operational capabilities of major players. If the Internet TV brands do not put up "playing hearts" and seriously do products and operate users, then waiting for them can only be out of competition. Not to be killed by peers, but to die for oneself!