China Home Entertainment Industry

An Expert's View about Retail Trade and Electronic Commerce in China

Posted on: 29 Mar 2010

Suppliers of home entertainment products in China are projectingmoderate growth in 2009 as they anticipate a slow down in sales due to the global financial crisis. Many makers remain optimistic that China can continue to leverage its price advantage in the product line, but companies are nevertheless revising business strategies to remain competitive.

 

More suppliers of LCD TVs, for example, are boosting core technology development through in-house LCD panel production. Several large companies have established their own panel production facilities to control the supply and cost of this key component.

 

Suppliers are exploring new export markets to offset the sales downturn in key export destinations, specifically the US. Makers of home theater systems are eyeing countries in South America, the Middle Eastand Southeast Asia. Companies supplying mini-component systems are confident rising demand in the Middle East and Africa will boost sales this year.

 

Meanwhile, the robust global gaming market, specifically the console game and handheld gaming device sectors, will sustain growth in the game controller line in China. Suppliers expect sales to start rebounding in 2H09.

 

The following are some of the key trends we see in China’s home entertainment industry:

• Many companies will lower their prices to stimulate demand. Adjustments will, however, be limited to within 5 percent so as not to risk further denting thinning margins.

• The EU is a target market for many suppliers, especially ascompanies expect sales in the US to continue to slide.

• Licensing costs continue to present a challenge to suppliers, in particular those offering DVD minicomponent systems, DVB receivers and game controllers. Some makers do not include the IPR cost in their price and negotiate with clients toshoulder it.

• Audio quality tops product development priorities of suppliers of home audio products. Makers are also innovating the housing design.

• High definition and digitization are two main trends this year. Many new releases of home video products are either HD-ready or full-HDmodels.

• Rising supply and the falling cost of large LCD panels will boost the production of larger LCD TVs. Reductions in the cost of plasma display panels will spur the development and manufacture of larger plasma TVs.

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The above is extracted from the Executive Summary of China Sourcing Report: Home Entertainment

 

To learn more about this report, visit: http://www.chinasourcingreports.com/csr/baby-travel-care-products

 

More Useful Links: http://www.chinasourcingreports.com/csr/home-entertainment

 

Global Sources Online: Verified suppliers for quality buyers.

 

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Posted: 29 March 2010

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