Why are OLEDs not catering to Chinese consumers who are “spoiled”?

Editor’s note: This article is from WeChat public account “Technology to the order” (ID: xiangling0815) /a>, the author has bellmed.

Chinese spoilers

On the screen, a strange phenomenon is happening. “Two groups of people” can’t see each other and fight in their own worlds:

One side is the price war of Internet TV. The products of Zhengda Dachang have almost the same price as the knockoffs, and have repeatedly broken through the bottom line;

On the other side, the high-end TV field is constantly battling, and the battles of OLED and QLED for many years are getting more and more fierce. Although OLED has the upper hand, this is the TV product, which is related to the DoT era (Display of things, all things are displayed) No one in the war of the ups and downs will stop.

Some big names are “a thousand miles into the Dabie Mountains”. For example, the only global supplier of large-screen OLED panels, LG Display (LGD), started in May and held a tour called “OLED Big Bang”. 16 cities in China are “touring exhibitions”.

And LGD mainly supplies OLED screens to TV manufacturers. It is a chain upstream rather than a direct consumer brand. “Roading” is not like ordinary brand or marketing activities, but should be LGD in the past mainly in the north. On the basis of promotion and display of cities, we will expand the influence of OLEDs and shape cognition in second- and third-tier cities.

Cultivate more high-end market opportunities with grassroots soil, which coincides with the current trend of “high-end consumption sinking”.

Chinese consumers who are “spoiled”, why don’t OLEDs cater to them?

As the leader in the panel industry, why didn’t LGD join the price-cutting army and cooperate with the whole machine manufacturers to sing big dramas, but instead promote high-profile OLEDs with slightly higher prices?

The reason may be that this is not just the choice of LGD, but the choice of the times.

1. Concept, low price, Chinese consumers are being spoiled by some machine manufacturers

Take some Internet TV brands as the representative, the price war has already hit a few hundred pieces and you can buy one.The 31-inch TV and the 65-inch large-screen TV are even less than 3,000 yuan. Many people don’t understand.

In fact, the big price reduction of TV products is, to some extent, the result of the “cinema effect”: once the people sitting in the front row stand up to watch the movie, the people in the back row must stand up, and finally, the whole broadcast. The audience in the hall must stand up, and everyone could have sat down.

When the price cuts rise, all the machine factories must follow, and the final price will be lower and lower. In this process, Chinese consumers have been spoiled by some of the whole machine manufacturers. It has long been considered that the low price of TV is taken for granted.

2, low prices can’t keep the audience, and they can’t pull back the low heads

A very interesting thing is that consumers don’t want to relax the quality of the product because of the low price of the product. At the beginning of the hundreds of low-end mobile phones, consumers complained the most, with low capacity, running cards, and non-wearable casings.

Low-cost TV, although it is a loss-selling market, it is difficult to say how good it is in various experiences. The entire TV industry can only obtain sales through low prices, but cannot obtain real product recognition through sales. .

In addition, the biggest problem facing the TV industry itself does not necessarily come from price. Consumers are not willing or not watching TV is the fundamental reason, and the worse the TV experience, the consumer’s dislike is only The more serious it is.

At least, for the low-end people who have occupied the main pastime time by mobile phones and PADs, let them choose TV, only the higher quality or even new product impact can be achieved.

OLED does not cater to the low-priced market. It is necessary to hold high-end high-end banners. LGD even went to “tour exhibition” to let the market gain recognition of high-end, not only because of high manufacturing costs, but also because of TV To achieve sound development in the industry, the enterprise must have sufficient profit margins. The market perspective must be truly recognized and accepted by consumers. Return to the core of family life, OLED+ high-end is essential.

Low price is the end of an era, and high prices are the beginning of another era.

Chinese spoilers

Family smart IoT center, why OLED is the best screen

Not only the LGD upstream of the supply chain is very enthusiastic, e-commerce giants, machine manufacturers with the same value concept to OLED also has great expectations and supports the promotion and popularization of OLED in practical actions.

For example, in early June of this year, LGD and Jingdong signed a strategic cooperation agreement to build an OLED TV alliance. The participants include 7 mainstream machine manufacturers including Changhong, Skyworth, Philips, Hisense, Konka, LG Electronics, and Sony;

Before April, Suning specially held the peak event of OLED industry, announced that it will jointly create the “OLED Three-Super Plan”, open up 12,000 Internet store resources under Suning, and build five OLED innovation technology experience halls and tens of thousands. OLED sales points, 100 OLED experience stores, and thousands of OLED new product tastings will fully promote the popularity of OLED TVs.

With the promotion of LGD’s 16-city sweeping network, OLED has shown its potential to quickly capture the minds of high-end, ordinary middle-class consumers.

From the supply chain to the whole machine to the channel are so enthusiastic, after all, we still see the future of OLED, In the era of IoT superimposed DoT, OLED will be the best screen.

1, the maturity of technology, truly release the “multiple effect” of the experience

The product experience has a distinct “multiple effect”, and each quality experience is multiplied rather than additive. However, most emerging technologies are difficult to achieve perfection, there are always obvious shortcomings, less multipliers, more regrets.

However, the nearly comprehensive quality of the genes that OLED technology comes with, coupled with years of tempering, is releasing a powerful “multiplier effect.”

Compared with traditional and emerging technologies such as LCD and QLED, OLED has many advantages, just to name a few (only for ordinary large-screen products):

Color: This is the most direct experience. OLEDs have a higher color gamut performance, and the common understanding is that the display effect is not “widowed”; in addition, it has a higher contrast ratio, which means that the color gradation is more distinct and the details are clearer; the final OLED can present a vivid color. The phenomenon of whitening, excessively rich, and color cast that is often encountered on ordinary TVs does not occur.

Expressiveness: In addition to color advantages, OLEDs have a wider viewing angle. There are no abnormal colors on the top, bottom, left and right sides. Under IPS, there will be no light leakage due to backlighting. Of course, in this respect, the perfect black color of OLED is quite praised, because independent illumination does not depend on backlight, the “black” of OLED is real black, not “dark”.

Health: OLEDs can reduce eye damage by eye protection, which is of great value to contemporary people watching a large number of screens.

The “points” of these experiences have gathered to form a network of “experiences” for users. In online reviews, many people who have actually experienced OLED TV often feel “Ordinary TV can’t stand anymore.”

Now, the activities of LGD, the whole machine factory, and the channel dealers can be said to let more people come to “real experience” – and then “can’t go back.”

2, since it is a smart object, consumers expect more from the screen

The technical advantages of the above OLEDs are still under the “traditional TV” framework. However, OLED is an emerging display technology. When it collides with TV, we should consider the future value of “flying imagination.”

These “imaginations” that have been able to find traces in the LGD lab include:

Curved TV, the screen can be rolled up, not necessarily straight;

Folding TV, this is very familiar to everyone, the application on the mobile phone is on the rise, and the TV can also occupy the wall position less;

Transparent TV, the cool operation of sci-fi movies, because OLED’s self-illumination, no backlight is already feasible.

In addition, there are “black technology” such as double-sided display and screen self-generation.

To some extent, OLED technology that jumps out of the traditional TV thinking framework is also inevitable in the era of intelligent IoT.

Consumers’ demand for the intelligent IoT era, the straight bar that hangs on the wall in the traditional mode may not be satisfied, and the more diverse forms and interactions with other “screens” are falling. Forced TV to change in form, and this is almost only OLED can do.

Consumers are looking forward to emerging technologies, and they are actually looking forward to the experience of change.

3, DoT makes people return to TV

Back to the question mentioned above, TV as a traditional home entertainment center, the biggest problem now is not the price war, but the loss of consumer focus.

However, when OLEDs, especially those with black technology, are applied to television, the status of television may be “revivaled”.

OLED is the best carrier in the DoT era. The technical advantage determines that it is not only used in TV, but all companies/factory equipment, all household items, and all personal wearing items have a display screen using OLED technology. There will be no strict distinction between the terminal and the terminal.

We say that the loss of status of TV is the role of TV in the traditional perspective, and when the DoT era TV becomes a key terminal, there are many audio-visual entertainment, information interaction and even work-learning. Can be done on TV.

The status of the TV has changed throughout the scene, and it can even be the entrance to the smart object.

DoT will bring people back to TVHowever, there must be a large number of innovative interactive features waiting to be developed, which is another more complicated story.

Contrarian growth, OLED is getting better

According to the data of Aowei.com, in the first half of 2019, OLED TVs grew against the trend in the overall sluggish TV market, with the global market growing by 21%.

In the Chinese market, the year-on-year growth rate is expected to reach 130% in 2019, and the sales volume is estimated at 380,000 units. This figure may exceed 1 million by 2020. This is in line with the estimation of Yang Zisheng, general manager of Jingdong Household Appliances’ Black Power Division. “It is estimated that within two to three years, the scale of China’s OLED TV market will reach 2 million units.”

The market research firm IHS Market is relatively conservative. It is expected that China’s OLED TV market will grow by 70% in 2019 compared to last year.

In any case, in terms of data performance, OLED has grown against the trend and the trend has gradually grown.

At the same time, the price of OLED is also constantly falling. In the past, the price of OLED was already in the unit of 10,000 yuan.

This is not a deliberate attempt to attract the market at a price. At this stage, OLEDs appear in the form of new technologies, and this is not necessary. The root cause is that the technology continues to mature, sharing the OLED era dividends more players, For example, LGD’s factory in Guangzhou, China, has to achieve mass production in the third quarter.

This means that OLED has to enter the stage of full popularization from emerging black technology. Under the joint promotion of the industrial chain, price down and market demand release will be mutually exclusive processes.

From the background of the time on the eve of mass production, LGD pushed the “OLED Big Bang 燎 original trip”, which has obvious meaning of “hot iron”.

When middle-class groups in second- and third-tier cities gradually explode huge consumption energy, their acceptance of OLED directly affects the speed of OLED explosion. The OLED terminal experience activities will further “educate” these consumers, and to a certain extent, change the consumer perception under the “brainwashing” of the low-priced advertisements that have been overwhelmed, and return to the keyword of quality life pursuit. on.

“No harm without comparison”, let consumers understand what OLED is through direct display, and why buy OLED in the big era of consumption upgrade, similar activities will stimulate TV, display technology, and the future To occupy the minds of consumers.

On the eve of the widespread adoption of OLED, let us wait for the flowers to bloom and wait for the arrival of the wave of the times.