Can Peony bloom again

Recently, the reporter saw the Peony TV on sale at the Jingdong Mall, and the Peony Group official website also announced the announcement of the "Mudan Brand LCD TV Listing and Sale." After 10 years of fading out of the eyes of ordinary people, the news that the old brand peony is now making a comeback has caused quite a stir in the industry. Some people recalled that in the past, they believed that the brand and reputation of the peony brand were on the cutting edge and their advantages were not diminishing. Some people also based themselves on the current situation and believed that the TV market has been difficult to enter. For Peony, who once stood out for the moment, after returning to the market 10 years later, there are three big questions before it. Can the “Old Peony” rejuvenate still bright?

Only the brand is not enough

The competition in the color TV market is fierce, and the pattern of several major TV manufacturers leading the market is relatively stable, and it is difficult for new entrants to break through.

After years of scouring the waves, China's television industry has increasingly concentrated on several leading manufacturers, including Hisense, Skyworth, TCL, Changhong, Konka, and Haier. Coupled with Japanese brands such as Sony, Panasonic, and Sharp, which have years of branding, and Korean brands such as Samsung and LG, which have gradually entered the market, the competition in the TV market in China has become fierce. There are even color TV executives say: “China's color TV brand will not exceed 3 in 10 years.” Peng Xiandong, research director of China Yikang Black Power also told the “China Electronics News” reporter that the next 5 to 10 years, color TV industry brand The degree of concentration will be higher and higher.

In such a market environment, Peony TV would like to reopen it easier. Hao Yabin, deputy secretary-general of the China Electronics and Video Industry Association, said in an interview with a reporter from China Electronics News that the competition in the color TV market has become very fierce. The market structure of several color TV manufacturers is also relatively stable, and it is difficult to break through in such a market. Great.

However, this does not mean that Peony has no chance. In the early 1980s, Peony introduced a color TV production line from Matsushita, Japan, and produced China's first color TV set. In the era of "paying for tickets," peony once occupied half of the color TV market, and it is a veritable TV industry giant. As a once-influential color TV manufacturer, Peony has a good brand name. Hao Yabin said: “From the perspective of the development of the Beijing market and the rejuvenation of old brands, Peony needs to make color TV brands. China's color TV companies have relatively high manufacturing capacity, but we lack brands and the Chinese market needs brands.”

However, just relying on the brand, Peony can break the current market structure? In Peng Xiandong's view, currently several domestic color TV manufacturers have accumulated considerable depths in the upstream and downstream cooperation of the industry chain, distribution channels, and the establishment of after-sales service systems, which are critical for companies to enter the market, and in these respects, the peony It's too far from them.

The "Dual Generation" model is easy to cut into the long-term

Peony adopts a "dual generation" model of OEM and sales agency, and the production is handed over to BOE. The sales rely on Jingdong Mall.

The decision to return to the color TV market seems to be not the first time for Peony. It is understood that before Peony had also sought cooperation with other foundries, there are many companies take the initiative to come and find peony, but have not found a clear return path. This time, Peony chose the “dual generation” model of OEM and consignment sales. The production was handed over to BOE. The sales relied on Jingdong Mall.

Hao Yabin told reporters: “BOE and Peony are in the Beijing area. There is a panel and a brand. This combination is very good and may also receive some policy support.” “China Electronics News” reporter learns from BOE related person in charge The cooperation between BOE and Peony has not started from now. Both sides have always had a cooperative relationship. However, for the specific details of this cooperation, BOE expressed its unwillingness to disclose it. Some people in the industry believe that the use of OEM will inevitably affect the control of the company's product quality. How to ensure product quality is a problem that Peony needs to consider. However, in Hao Yabin's view, OEM may not affect the guarantee of product quality. The two are not contradictory. Apple is the best example.

On the Jingdong Mall website, the reporter saw two Peony TVs on sale, all of which were 32-inch flat-panel LCD TVs. The Peony Group’s official website has also published the news of “The Marketing of Peony LCD TVs,” saying that “it marks a re-entry into the market of the Peony brand that has been on the market for many years”. Peng Xiandong said that in the short term, consignment sales will certainly help Peony TV, but in the long run, it is not conducive to the cultivation of its brand. Hao Yabin said: “The 'dual generation' model is a differentiated choice for peony integration resources, which is beneficial to peony, and the adoption of traditional sales channels may not be suitable for it, and e-commerce channels are the future development trend. This model is desirable, and it is also a useful exploration for peony."

Gearing for intelligent transformation is an opportunity

The transformation and upgrading of the industry and the company's own strategic adjustment may bring new opportunities for development.

Peng Xiandong told reporters that TVs are moving in the direction of 3D, high-definition, and ultra-high-definition. If they can grasp new development opportunities, companies will have a chance to revive.

At the China International Industry Fair in November, Peony displayed its first domestic 60.1-inch 4x HD display with a resolution of 3840X2160. Together with Peony, the 3D series of products jointly developed by Peony through international cooperation. All this shows that Peony is closely following cutting-edge technologies in the display field and is likely to take the initiative in the next wave of industrial transformation.

In addition to technology upgrades, China's color TV industry is also in the intelligent transformation stage. In Hao Yabin's view, it is likely that the “difficult and easy” situation will occur during the transition. He said: "At present, intelligence has brought about the transformation and upgrading of the industry. In this industrial revolution, there are many opportunities. Now the advantages of color TV manufacturers may also become burdensome, such as Nokia in the mobile phone market." In comparison with the current leading companies in the market, Peony may be able to transform in a smart fashion. It is understood that since 2008, Peony has implemented a strategic transformation and is gradually realizing a shift from traditional TV manufacturers to digital television applications, standards, technologies, products and service providers.

The transformation and upgrading of the industry and the company's own strategic adjustment may bring new opportunities for development. Hao Yabin believes that returning to the market is a comprehensive test of peony's strategic decisions, operating capabilities, and resource integration capabilities. To succeed, companies must make great efforts. The key to this is to master the core technologies and consumers. Demand.

For the current peony, you can use the lyrics of Eason Chan to describe: "After 10 years, we are friends and we can greet you." But can peony find the reason for reviving? I am afraid that there is still time and market testing.