BEIJING, Dec. 1 /PRNewswire-Asia/ -- CCID Consulting, China's leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong (Hong Kong Stock Exchange: HK08235), recently released its article on China's LCD display market in 2008Q3.
In 2008Q3, the sales volume of China's LCD display market reached 3.176 million sets, up 47.1% year-on-year and 23.5% over 2008Q2. The market remained steady. As for LCD sizes, 19" LCD's share reached 68.0%; bigger, 19" and over LCDs reached 19.2% in share, up 84.7% year-on-year and 22.8% over 2008Q2, which shows the trend of the LCD market in the future.
The 2008 China's LCD display market was disappointing. All manufacturers suffered tremendous pressure; competition pattern presents Matthew effect. Affected by the financial crisis, the plunge in demand points to a groom prospect. With stocks piling up, price drop of LCD panel becomes inevitable. China's economy continues develop rapidly, but affected by the imbalanced regional growth, demand for LCD displays have saturated; affected by the global financial crisis, demand from China's SMB enterprises have fallen sharply due to cost cuts.
In 2008, leading brands adjusted pricing downwards to strengthen market position, that for example, Samsung narrowed the price gap with AOC. These strategies were proved to be effective with second-line and third line brands seeing falling sales figures. These brands would have to take their prices down further, being not able to realize a large-scale production cost advantage and upstream negotiation advantage. As the market leader, Samsung's price trend is market's wine vane: on the basis of existing production plan, Samsung acquires more market advantage with temporary profit sacrifice, which forms great pressure to other manufacturers; Samsung's price drop drives its development. Affected by Samsung and other brands' price impact, AOC's market share reduces. LG adopts active pricing and price drop strategy so as to keep a stable market position. Great Wall's share fluctuates greatly. ViewSonic is always in passive status.
Figure 1: Major China's LCD Display Market Shares, Jan.-Sept., 2008
http://www.ccidconsulting.com/upload/14000.jpg
Source: CCID Consulting, Oct. 2008
In the first three quarters in 2008, China's LCD display brands' major sizes include 19", 20" and 22". In 2008Q3, manufacturers' price war is heating up. 19" LCD display's average price decreased to 1,095 Yuan in Sept., 22" LCD display's average price decreased to 1,641 Yuan. It is forecasted that price drop is still one of the important trends of China's LCD display market in the future. However, manufacturers should avoid excessive price competition's negative impact; they should adopt diversified development strategy to apply market competition, such as to improve product performances, dynamic contrast and color gamut, reduce cost, cooperate with upstream manufacturers to launch 16 9 products, and enlarge investment in large screen products. More and more 24" and 26" products will appear in the market with low profiles.
Table 1: Major China's LCD Display Brands' Prices Jan.-Sept., 2008
Size 1 2 3 4 5 6 7 8 9
19 1,625 1,608 1,561 1,487 1,455 1,414 1,318 1,159 1,095
20 1,810 1,772 1,697 1,621 1,638 1,600 1,514 1,234 1,240
22 2,260 2,223 2,080 1,961 1,859 1,926 1,884 1,687 1,641
>22 6,274 5,916 5,492 5,207 5,036 5,064 3,058 2,812 2,804
Source: CCID Consulting, Oct. 2008
Table 2: Major China's LCD Display Brands' Prices Change, Jan.-Sept., 2008
(By Size)
Size 1 2 3 4 5 6 7 8 9
19 -1.0% -2.9% -4.7% -2.2% -2.8% -6.8% -12.1% -5.5%
20 -2.1% -4.2% -4.5% 1.0% -2.3% -5.4% -18.5% 0.5%
22 -1.6% -6.4% -5.7% -5.2% 3.6% -2.2% -10.5% -2.7%
>22 -5.7% -7.2% -5.2% -3.3% 0.6% -39.6% -8.0% -0.3%
Source: CCID Consulting, Oct. 2008
About CCID Consulting
CCID Consulting Co., Ltd. (hereinafter known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: 8235.HK), is directly affiliated with China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen, Wuhan and Chengdu, with over 300 professional consultants after many years of development. The company's business scope has covered over 200 large and medium-sized cities in China.
Based on major areas of competitiveness: industrial resources, information technology and data channels, CCID Consulting provides customers with public policy establishment, industry competitiveness upgrading, development strategy and planning, marketing strategy and research, HR management, IT programming and management. CCID Consulting's customers range from industrial users in electronics, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks. CCID Consulting commits itself to becoming the No. 1 advisor for enterprise management, the No. 1 consultancy for government decisions and the No. 1 brand for informatization consulting.
For more information, please contact:
Cynthia Liu
Coordinating Manager
CCID Consulting Co., Ltd.
Tel: +86-10-8855-9080
Email: liuyan@ccidconsulting.com
SOURCE CCID Consulting Co., Ltd.
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