Analysts:Satoshi Kawasaki, Shanghai Office, INTAGE HOLDINGS, Inc. Maki Asai, DCG & Service Industry Division, INTAGE, Inc.

Overview

• The presence of Japanese TV brands is weakening in the Chinese market.
• Korean and Chinese brands are making significant advances as TV brands people want to buy next.

Analysis

According to the survey of the Chinese TV market, Hisense (a Chinese brand) and Skyworth (a Hong-Kong-based brand) ranked in the top two places as "TV brands people own now," followed by Samsung (a Korean brand). Sony (a Japanese brand) ranked in the top place as a "TV brand people want to buy next," followed by Samsung and Sharp (a Japanese brand). Japanese brands maintained a significant presence in this field.
However, looking at the change over time, Korean Samsung and Chinese brands such as Hisense and Skyworth have clearly shown steady growth both as "TV brands people own now" and "TV brands people want to buy next." The ratings for Japanese brands, in contrast, are stagnant or declining.
Samsung and Chinese makers such as Hisense and Skyworth have successfully entered the high-performance and high-priced TV segment that Japanese brands used to dominate. In China, the market for multipurpose TVs (Smart TVs) enabling users to watch Internet videos and easily connect to tablet PCs or other terminals has been growing rapidly. Samsung, Hisense, and Skyworth all focus on these Smart TVs and sell their products at more competitive prices than Japanese products. Consumers seem to largely welcome these new models.
These device trends and competition in the Chinese market are weakening the presence of Japanese brands and the good reputation they have established in the high-performance, high-quality, and high-priced segments.
Chinese consumers still seem to have confidence in the quality of Japanese brands, as the Japanese makers have kept their high rankings as "TV brands people want to buy next."
Japanese brands will need to establish new positions by quickly understanding and responding to the needs of consumers in the rapidly changing Chinese market.

1. "TV brands people own now"

Hisense ranked at the top, at 18.7%, followed by Skyworth and Samsung. Looking at the change between 2012 and 2013, the Chinese Changhong and Konka fell from high rankings in 2012 while the Korean Samsung made a substantial advance.

[Figure 1] Top 10 TV brands people own now

2. "TV brands people want to buy next"

The Japanese brand Sony ranked at the top, at 27.7%, followed by Samsung and Sharp. Among these, Samsung grew by more than 5 points from 2012. Hisense and Skyworth, strong performers as "TV brands people own now," both ranked in the top 5, climbing from their 2012 levels.

[Figure 2] Top 10 TV brands people want to buy next

Survey Overview

Asia Insight Report

INTAGE Inc. publishes the "Asia Insight Report" based on spontaneous surveys conducted in the Asian region in collaboration with overseas INTAGE subsidiaries to identify trends in attitudes and behavior on various themes.
Part 6 of the Report, "China Market Survey - TVs," was conducted in China in July 2012 and July 2013. About 300 Males and females (aged from 20 to 59) were selected to respond to questions about TVs. Following are the survey results.