- Achieve about 70~80% of goal by each company
- Reach about 1.1~1.2 million in LCD TV sales volume during the national holiday season (1 week)
- Disperse flat TV sales volume to 2nd tier and local companies instead of monopoly of 1st tier
- Increase in market share rate of local companies Expand from previous level of 30% to 45%
- Growth stagnation of first tier markets (Beijing, Shanghai, Guangzhou, Shenzhen, etc.)
- Number of consumers visiting stores reduce to about 60~70% compared to an average year
- As 32 inch PDP reach stable sales chart, focus on future growth trend
The sales volume of flat TVs as a whole greatly increased during this national holiday season, but it was not enough to reach the expected value.
It is an increased quantity compared to slack seasons of June and July, and August when Olympic took place, each selling about 800 thousand, 860 thousand, and 1 million, respectively. But considering the increasing trend, it is not only at a similar level as the labor day or the spring season in the beginning of the year, but each company also reached only 70~80% level of sales achievement rate compared to the goal quantity of national holiday. Consequently, the stagnation of LCD TV demand increasing trend in China was confirmed.
In addition, the greater blows to foreign companies were that the first class market stagnated and that the market share rate of local companies had increased as the second class market relatively grew larger.
As the foreign companies greatly discounted their price on Labor Day, 3S - Samsung, SONY, and Sharp - was the monopolistic system. But in this national holiday season, the local companies are greatly increasing the sales volume in second and third tier markets, and the market share rate is increasing from previous 30% to 45%. Hisense, the Chinese local company, was able to succeed in recovering its first place again.
The market demand grew inversely as the influences of economic stagnation such as securities market and real estate in China was reflected in advance centering on the first tier cities. The influence overcoming the foreign companies that showed strong trends in first tier cities was relatively greater than the Chinese local companies.
In addition, the second and third tier markets are growing in transition period, and because there is still a difference between consumption level of consumers and the first tier cities, the sales volume of local companies had expanded as they first purchased flat TVs low in price.
Not only that, but since most of the foreign companies do not have their own distribution network the sales is only possible through distribution channels, Guomei or Suning. Thus, they could not invade the small and medium sized cities in countryside and as the profitability worsened due to distribution margin requests of large sized distribution channels, they also could not unfold aggressive price policy.
In contrast, the invasions into medium and small cities were possible through the distribution channels that are owned by local companies, and they were able to unfold aggressive price policy.
The ranks and market share rate of LCD TV by each company will be examined briefly below.
| Maker | MS | |
| 1st | Hisense | 18% |
| 2nd | Sharp | 13% |
| 3rd | Samsung | 11% |
| 4th | SONY | 10% |
| 5th | Skyworth | 10% |
| 6th | Changhong | 8% |
| 7th | Konka | 8% |
| 8th | LG | 6% |
| 9th | TCL | 5% |
| 10th | Toshiba | 5% |
Besides these companies, the local companies arose to fifth, sixth, and seventh place, confirming that the market share rate of local companies had expanded.
Next, national holiday LCD TV price trend will be examined.
LCD TV Average Sales Price by Size during National Holiday Season
| Size | Price (CNY) |
| 32"HD | 2,900~5,900 |
| 37"HD | 4,900~6,900 |
| 40/42"HD | 4,900~7,900 |
| 40/42"FHD | 5,500~8,500 |
| 46/47"FHD | 6,900~13,500 |
32 inch TVs had formed a price range of CNY 2,900 to CNY 5,900, and this is a price that had reduced an average of CNY 500 compared to the slack season. Sharp reduced the price of 32 inch TV up to CNY 3,800 on the first and second days of national holiday, thereby increasing the sales volume nationwide and SONY counteracted with the same price as Sharp. However, Sharp is leading the 46 inch to 52 inch FHD model recently in China, and as the popularity increased, Sharp's TV has more competitiveness than SONY that high market share rate can be recorded in 23 inch.
The price of 37 inch TVs had decreased to an average of CNY 800~900, and the price of 40/42 inch HD and FHD had reduced to an average of CNY 1,000~1,500, forming a price range of CNY 4,900~7,900 3and 5,500~8,500, respectively.
Examining the present conditions by company in 40/42 inch FHD zone, Samsung sold about CNY 6,000 of low end models, about CNY 7,000~7,300 of high end models in major cities, and it sold CNY 6,500 and about CNY 7,500~7,900 of each low end model and high end model in other small and medium cities. Samsung, considering profitability different from Labor Day, did not unfold aggressive price policy in cities other than the main cities.
To increase the market share rate of the target size 40 inch HD, SONY drove the price to an average of CNY 7,200. Other than that, Philips had also reduced the price of 42 inch FHD to CNY 6,800 and by securing a part of the sales volume, the fight for domination in 40/42 inch FHD field was severe. Due to this, the 40/42 inch FHD has set up an opportunity to replace HD demand.
Likewise, examining the main target size by company during the national holiday high demand season, Sharp secured sales volume by having 32 inch HD, 37 inch HD, and 46 inch FHD as targets, and SONY showed favorableness in 40 inch FHD sales. Local companies such as Skyworth and Konka increased the sales volume with the low priced types of targets of 26 inch to 40/42 inch.
What was different from average years besides these is that Sharp and SONY threw a price war in Guangzhou region to expand to enormous quantity.
This is because the whole region of Guangzhou in Southern China is a region that Japanese brand is relatively strong and although it is a major city, a much greater effect can be gained if the TVs are sold at a same or even lower price since Samsung's brand power is relatively weak, by investing the same cost as Shanghai and Beijing.
Lastly, another trend is that PDP TV that made little progress in China reached a stable sales process as the price difference between the 32 inch PDP TV with the price of CNY 3,500~3,590 and LCD TV with about CNY 500 was set. This means that the demand level of PDP and the demand level of LCD were distinguished differently and that PDP TV secured and settled manic group in China.
In contrast, about 1.8~1.9 million PDP TVs were sold and a similar amount as the past spring season and Labor Day was maintained. The sales ranking and market share rates by company are as follows.
| Maker | MS | |
| 1st | Hisense | 25% |
| 2nd | Panasonic | 21% |
| 3rd | Changhong | 16% |
| 4th | Hitachi | 15% |
| 5th | Haier | 12% |
| 6th | Skyworth | 6% |
| 7th | Konka | 5% |
Hisense, the Chinese local company, had sold a total of 48 thousand PDP TVs and took first place. In contrast, Hitachi that had been maintaining first place in Labor Day and the first half year PDP TV sales outcome was reduced to fourth place in sales rank and stopping at market share rate of 15% due to passive sales activity and withholding of new product release.
Changhong, the local company, also could not promote active sales activity from quantity stagnation due to internal production failure, and by selling based on second and third tier markets with the limited quantity, it recorded market share rate of 16%.
Due to the above trends, the Chinese national holidays this year had closed and the market sales price was recovered again to about half of the reduced price thereafter.
Until the returning high demand season in spring 2009, the price is projected to gradually fall.
