Brand Competition and Consumer Preference of the Chinese LCD TV Market

Document Code: DPRPT15111201

Publication Date: November 2015

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BRAND COMPETITION AND CONSUMER PREFERENCE OF THE CHINESE LCD TV MARKET

by MIC

Abstract

Using big data analytics, this research covers all top LCD TV (Liquid Crystal

Display) brands sold on China's online stores Tmall and JD with following analysis

dimensions: brand ranking by the number of items available, ranking by LCD TV

sales, number of times online users mention about a particular LCD TV brand,

brand preferences, factors affecting purchase, as well as online shoppers'

comments and user analysis. All those dimensions help build a massive social

media database with an aim to more accurately reflect consumer needs in China.

Big Data Analytics

Brand Competition and Consumer Preference of the Chinese LCD TV Market November 2015

© 2015 Market Intelligence & Consulting Institute

DPRPT15111201 1

TABLE OF CONTENT

1. Executive summary 5

1.1 Product Sales 5

1.2 Brand Position 5

1.3 Brand Awareness 5

1.4 User Analysis 5

2. Research Objective 5

3. Product Sales Tracking 6

4. Brand Position Tracking 8

5. Brand Awareness 10

5.1 KKTV K43 Reviews 10

5.2 Xiaomi MiTV2 L40M2-AA Reviews 11

5.3 LeTV S40 Air L Reviews 13

5.4 Xiaomi MiTV2 4K 49-inch Reviews 14

5.5 LeTV S40 Air 4 Reviews 16

6. User Analysis 17

6.1 Xiaomi 18

6.2 LeTV 19

6.3 KKTV 20

6.4 Skyworth 21

6.5 LG 22

Conclusion 23

Brand Competition Analysis 23

Consumer Preference Analysis 24

Appendix 25

Glossary of Terms 25

List of Companies 26



DPRPT15111201 2

LIST OF FIGURES

Figure 1: Data Sources and Collection Methods 6

Figure 2: Brand Ranking by Number of Items Available on Tmall and JD 6

Figure 3: Sales Volume Ranking by LCD TV Model 6

Figure 4: Sales Volume Ranking by Chinese LCD TV Model 7

Figure 5: Sales Volume Ranking by Foreign LCD TV Model 7

Figure 6: Online Visibility Ranking by LCD TV Brand 8

Figure 7: Sentiment Ranking by LCD TV Brand 9

Figure 8: Factors Affecting Purchase of Top 5 LCD TV Models 10

Figure 9: Factors Affecting Purchase of KKTV K43 11

Figure 10: Factors Affecting Purchase of Xiaomi MiTV2 L40M2-AA 12

Figure 11: Factors Affecting Purchase of the LeTV S40 Air L 14

Figure 12: Factors Affecting Purchase of the Xiaomi MiTV2 4K 49-inch 15

Figure 13: Factors Affecting Purchase of LeTV S40 Air 4 17

Figure 14: Xiaomi LCD TV User Distribution by Gender & Age 18

Figure 15: Xiaomi LCD TV User Distribution by Region 18

Figure 16: LeTV LCD TV User Distribution by Gender & Age 19

Figure 17: LeTV LCD TV User Distribution by Region 19

Figure 18: KKTV LCD TV User Distribution by Gender & Age 20

Figure 19: KKTV LCD TV User Distribution by Region 20

Figure 20: Skyworth LCD TV User Distribution by Gender & Age 21

Figure 21: Skyworth LCD TV User Distribution by Region 21



DPRPT15111201 3

Figure 20: LG LCD TV User Distribution by Gender & Age 22

Figure 21: LG LCD TV User Distribution by Region 22



DPRPT15111201 4

LIST OF TABLES

Table 1: Brand Competition Analysis 23



DPRPT15111201 5

1. EXECUTIVE SUMMARY

1.1 Product Sales

In terms of the number of LCD TVs available on Tmall and JD during 15 May 2015

to 15 August 2015, the top 5 brands were TCL, Changhong, Hisense, Sharp,

Konka.

On Tmall, the top 5 LCD TVs in terms of overall sales were KKTV K43, Xiaomi

MiTV 2 L40M2-AA, LeTV S40 Air L, Xiaomi MiTV 2 4K 49-inch, and LeTV S50 Air.

1.2 Brand Position

When it comes to user's perception towards LCD TV brands, Xiaomi and LeTV

were grouped in the category of mainstay brands with high reviews while LG,

Hisense and Skyworth in the category of niche brands with high reviews.

1.3 Brand Awareness

When it comes to LCD TVs, Chinese Internet users tended to focus on enhanced

definition and C/P (Cost-Performance) ratio. For the bestseller KKTV K43, online

users cared more about C/P ratio.

1.4 User Analysis

The majority of LCD TV shoppers in China were men aged between 25 and 34.

Most of them live in Guangdong, Zhejiang and Jiangsu.

2. RESEARCH OBJECTIVE Consumer preferences are analyzed using big data analytics in lieu of conventional

consumer analytics. The major problem with conventional approaches is that the

data sources are relatively limited as consumers' feedbacks are acquired indirectly

via market surveys (phone or online surveys). Using big data analytics, keyword

searches can be conducted on social media and e-commerce platforms, from

which a huge volume of data can be collected on a regular basis to provide

valuable information about consumers.



DPRPT15111201 6

Figure 1: Data Sources and Collection Methods

Note 1: This report summarizes data collected from Sina Weibo, Tmall, and JD; citation data must

be used with care.

Note 2: Sina Weibo is the most influential social network platform in China, with over 200 million

monthly active users in the past few months.

Note 3: Tmall and JD are the top two B2C platforms in China, with combined market share of over

80%.

Source: MIC, November 2015

3. PRODUCT SALES TRACKING Figure 2: Brand Ranking by Number of Items Available on Tmall and JD

1,988

1,723

1,035

772 677

397 246 231 226 217 170

35 20 8 1 -

500

1,000

1,500

2,000

2,500

Unit

Source: Tmall and JD, compiled by MIC, November 2015

Figure 3: Sales Volume Ranking by LCD TV Model



DPRPT15111201 7

9,007

6,096

4,885 4,526 4,163

2,872 2,667 2,286 2,170 2,043

-

2,000

4,000

6,000

8,000

10,000

Unit

Source: Tmall, compiled by MIC, November 2015

Figure 4: Sales Volume Ranking by Chinese LCD TV Model

9,007

6,096

4,885 4,526 4,163

2,872 2,667 2,286 2,170 2,043

-

2,000

4,000

6,000

8,000

10,000

Unit


Figure 5: Sales Volume Ranking by Foreign LCD TV Model



DPRPT15111201 8

1,023 956 925

853

701

566 520

407 390 383

-

300

600

900

1,200 Unit

Note: Source: Tmall, compiled by MIC, November 2015

4. BRAND POSITION TRACKING Figure 6: Online Visibility Ranking by LCD TV Brand

品牌網路提及量排行4,441,015 4,366,858

1,350,697

635,686 543,822 529,279 527,830 497,425

390,170 390,170 343,473 185,582 130,735 93,091 41,906

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000 Posts

Note 1: Online visibility ranking refers to the number of times online users mention a specific LCD

TV brand on the social media platform



DPRPT15111201 9

Note 2: Xiaomi, LeTV, Coocaa, 17TV, and KKTV are online TV brands and thus those brands have

paid more attention on sustaining high levels of product performance and indicators. Therefore,

those online TV brands have been more frequently mentioned than traditional TV brands

Note 3: In terms of the number of times mentioning online, marketing content might account for

certain proportions: Xiaomi 35%, LeTV 30%, Skyworth 25%, Coocaa 20% and 7TV 30%

Source: Sina Weibo, compiled by MIC, November 2015

Figure 7: Sentiment Ranking by LCD TV Brand

0.0

0.5

1.0

- 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000

Mainstay Products with

Average Reviews

Mainstay Products

with High Reviews

Niche Products with

High Reviews

Niche Products with

Average Reviews

Ne

t Se

ntim

en

t Ra

te

Number of

Times

Mentioned

Online

Note: This mapping provides cross-analysis between the number of times mentioned online and

net sentiment rate of a brand; number of times mentioned online refer to the number of times

Internet users mentioned a specific brand; Net Sentiment Rate (NSR) = (Positive Posts – Negative

Posts)/ (Positive Posts + Negative Posts)

Source: Sina Weibo, compiled by MIC, November 2015



DPRPT15111201 10

5. BRAND AWARENESS Figure 8: Factors Affecting Purchase of Top 5 LCD TV Models

0.5

1.0

KKTV K43 43-inch

Xiaomi MiTV 2L40M2-AA

LeTV S40 Air L

Xiaomi MiTV2 4K49-inch

LeTV S50 Air 4

Number of Times Mentioned Online:

12,788

Net S

en

time

nt R

ate

Audio

Quality

Color

Appearance

Internet

Connection

C/R Ratio ClarityScreen

Note: This mapping provides cross-analysis between the number of times mentioned online and

net sentiment rate of a brand; number of times mentioned online refer to the number of times

Internet users mentioned a specific brand; Net Sentiment Rate (NSR) = (Positive Posts – Negative

Posts)/ (Positive Posts + Negative Posts)

Source: Tmall and JD, compiled by MIC, November 2015

5.1 KKTV K43 Reviews

Review 1: I am satisfied with its quality, high C/P ratio. System runs fast and

impresses me.

Review 2: This has pretty good image clarity and fine resolution.

Review 3: It works as good as described. Vivid colors and provides a wide range of

features.

Review 4: Screen is huge enough for me with great clarity and audio playback

quality.

Review 5: This smart TV comes with all necessary specs and runs fast. Vivid and

natural color with sharp contrast

Review 6: This comes with excellent form factor design and I am quite satisfied.



DPRPT15111201 11

Review 7: The most extraordinary feature is its user interface design that provides

much better system performance. The built-in processor, though not top-notch, still

manages to offer fast responsive speeds without noticeable lays.

Figure 9: Factors Affecting Purchase of KKTV K43

5.74%

5.77%

9.04%

9.19%

10.00%

10.29%

18.05%

25.11%

0% 10% 20% 30%

System

Appearance

Screen

Resolution

Sound Effects

Features

EnhancedDefinition

C/P Ratio

KKTV K43


5.2 Xiaomi MiTV2 L40M2-AA Reviews

Review 1: This got pretty good C/P ratio after taking appearance, features, quality

and price into considerations.

Review 2: It gives clear pictures and friendly user interface design. Overall quality

is quite satisfying.

Review 3: Buying such TV with high clarity is the first for me and its price is insane.



DPRPT15111201 12

Review 4: In my opinion, this big screen TV deliver clear images clear image and

the system runs pretty fast.

Review 5: This smart TV has good quality and all my family members love it.

Review 6: I like this TV. Although there are critics about its sound effect

performance but it is not bothering me. It got excellent C/P ratio and screen

performance.

Review 7: I just tried it and it is very easy to use. Thanks to fast internet connection

speed, I can easily access internet content.

Figure 10: Factors Affecting Purchase of Xiaomi MiTV2 L40M2-AA

6.55%

8.30%

9.17%

12.05%

16.77%

19.48%

27.69%

0% 5% 10% 15% 20% 25% 30%

Easy to Use

Screen

Functionality

OperationalSpeeds

Resolution

EnhancedDefinition

C/P Ratio

Xiaomi MiTV2 L40M2-AA




DPRPT15111201 13

5.3 LeTV S40 Air L Reviews

Review 1: This model is so powerful with robust features, vivid image and color,

and awesome sound effect. What a bargain!

Review 2: In my opinion, its appearance, features, screen image and price are

superior to Xiaomi's MiTV.

Review 3: What impressed me are its features, stylish appearance, and clear

image display. This is a really pleasant shopping experience.

Review 4: This provides outstanding screen performance with clear images and

sharp contrast. It comes with a warmer color that is good for eyes. Samsung's

display does a good job.

Review 5: Overall speaking, I am quite satisfied with this TV. The only thing that

annoys me is the repetitive commercials every time when TV is on. It will be better

if more humanity factors can be added to it.

Review 6: Good product quality and fast boot speeds. When watching online

content, it is easy to operate.

Review 7: Originally I aimed for Xiaomi's MiTV but bought LeTV instead because

of its rich content sources. And I think I've made a right decision.



DPRPT15111201 14

Figure 11: Factors Affecting Purchase of the LeTV S40 Air L

3.57%

5.66%

7.01%

8.00%

9.47%

26.32%

39.98%

0% 10% 20% 30% 40% 50%

Online ContentSources

OperationalReadiness

Start-up Ads

Screen

Functionality

C/P Ratio

EnhancedDefinition

LeTV S40 Air 4


5.4 Xiaomi MiTV2 4K 49-inch Reviews

Review 1: I have been watching TV programs on this gadget for a while and its

sound effects are incredible, especially with really good base sound effects.

Review 2: This is a good product with high definition and good sound effects. This

is one of the best choices if you are looking for a smart TV.



DPRPT15111201 15

Review 3: The overall quality of this TV is not bad but it can be better if some

improvement is done to the noticeable gap between display screen and TV frame.

Review 4: MiTV is an excellent product with robust features, appealing appearance,

sophisticated design and clear images.

Review 5: This got good C/P ratio and features high definition images. I am totally

satisfied with base sound effects.

Review 6: What impressed me are its features, stylish appearance, and clear

image display. This is a really pleasant shopping experience for me.

Review 7: This is a great TV with high definition. However, there is not enough 4K

content sources and is unable to demonstrate all of its advantages.

Figure 12: Factors Affecting Purchase of the Xiaomi MiTV2 4K 49-inch

6.98%

10.42%

11.71%

13.87%

14.38%

18.43%

24.20%

0% 10% 20% 30%

Online ContentSources

Appearance

C/P Ratio

Functionality

Screen

EnhancedDefinition

Sound Effects

Xiaomi MiTV2 4K 49-inch




DPRPT15111201 16

5.5 LeTV S40 Air 4 Reviews

Review 1: LeTV performs nicely with good display definition. Although this is not a

4K TV but I am happy with 1080p.

Review 2: It is very easy to play content that comes with high definition. And its C/P

ratio is incredible.

Review 3: This TV has very good picture definition and is easy to operate and use.

Great sound effects.

Review 4: Awesome price and unbelievable features. This is my second LeTV.

Online content has clear and true-to-life images. It is very agile and easy to

operate.

Review 5: Great C/P ratio and impressive appearance. I bought it at a sale

promotion and it is perfect to me!

Review 6: A great stuff with an ultra-large display to show images clearly. My mom

really likes it too and it is enjoyable to watch TV programs with this screen size.



DPRPT15111201 17

Figure 13: Factors Affecting Purchase of LeTV S40 Air 4

8.09%

9.38%

16.73%

17.46%

18.01%

30.33%

0% 10% 20% 30% 40%

Screen

Appearance

Functionality

Sound Effects

C/P Ratio

EnhancedDefinition

LeTV S40 Air 4


6. USER ANALYSIS



DPRPT15111201 18

6.1 Xiaomi

Figure 14: Xiaomi LCD TV User Distribution by Gender & Age

79% 21%

Distribution by

Gender

13.6%

36.1%

24.3%

11.6%9.7%

3.4%

0%

10%

20%

30%

40%

18-24 25-29 30-34 35-39 40-49 50-59

Distribution by Age


Figure 15: Xiaomi LCD TV User Distribution by Region

3.2%

3.6%

3.6%

4.4%

4.4%

5.8%

6.6%

8.5%

10.5%

12.7%

0% 10% 20%

Hebei

Sichuan

Shanghai

Beijing

Fujian

Henan

Shandong

Jiangsu

Zhejiang

Guangdong

Distribution by Region




DPRPT15111201 19

6.2 LeTV

Figure 16: LeTV LCD TV User Distribution by Gender & Age

74% 26%

Distribution by

Gender

13.4%

33.6%

22.4%

11.5% 10.9%

3.6%

0%

10%

20%

30%

40%

18-24 25-29 30-34 35-39 40-49 50-59

Distribution by Age


Figure 17: LeTV LCD TV User Distribution by Region

3.2%

3.6%

3.6%

4.4%

4.4%

5.8%

6.6%

8.5%

10.5%

12.7%

0% 10% 20%

Hebei

Sichuan

Shanghai

Beijing

Fujian

Henan

Shandong

Jiangsu

Zhejiang

Guangdong





DPRPT15111201 20

6.3 KKTV

Figure 18: KKTV LCD TV User Distribution by Gender & Age

79% 21%

Distribution by

Gender

8.8%

22.1% 22.7%

18.1% 17.8%

7.8%

0%

10%

20%

30%

18-24 25-29 30-34 35-39 40-49 50-59

Distribution by Age


Figure 19: KKTV LCD TV User Distribution by Region

3.8%

4.3%

4.4%

5.0%

5.2%

6.7%

7.6%

8.6%

9.1%

17.3%

0% 10% 20%

Fujian

Hebei

Hunan

Anhui

Henan

Jiangsu

Zhejiang

Shandong

Guangxi

Guangdong





DPRPT15111201 21

6.4 Skyworth

Figure 20: Skyworth LCD TV User Distribution by Gender & Age

65% 35%

Distribution by

Gender

12.2%

29.4%

21.5%

13.0%15.1%

5.5%

0%

10%

20%

30%

40%

18-24 25-29 30-34 35-39 40-49 50-59

Distribution by Age


Figure 21: Skyworth LCD TV User Distribution by Region

3.7%

3.8%

4.0%

5.2%

5.4%

5.5%

5.8%

7.3%

7.9%

16.7%

0% 10% 20%

Guangxi

Sichuan

Hubei

Anhui

Henan

Hunan

Jiangsu

Zhejiang

Shangong

Guangdong





DPRPT15111201 22

6.5 LG

Figure 22: LG LCD TV User Distribution by Gender & Age

74% 26%

Distribution by

Gender

12.9%

31.4%

22.0%

13.1% 13.7%

4.8%

0%

10%

20%

30%

40%

18-24 25-29 30-34 35-39 40-49 50-59

Distribution by Age


Figure 23: LG LCD TV User Distribution by Region

3.5%

3.6%

3.7%

4.1%

4.1%

4.4%

6.8%

7.1%

7.2%

16.9%

0% 10% 20%

Anhui

Sichuan

Guangxi

Shandong

Shanhai

Heilongjiang

Jiangsu

Zhejiang

Liaoning

Guangdong





DPRPT15111201 23

CONCLUSION

Brand Competition Analysis

Based on the number of LCD TVs on online stores Tmall and JD during 15 May

2015 and 15 August 2015, the top-10 LCD TV brands were: TCL, Changhong,

Hisense, Sharp, Samsung, LG, LeTV, Sony, Skyworth and Haier. At the seventh

place, LeTV was the only internet TV brands that made it to the top-10 over the

research period. Other internet TV brands such as Xiaomi and CooCaa dropped

out of the rankings.

The data showed that the top-5 models in terms of sales volume were all from

Chinese brands. KKTV K43 had highest sales volume, followed by Xiaomi MiTV2

40-inch, LeTV S40 Air L, Xiaomi MiTV2 49-inch and LeTV S50 Air.

The analysis of brand preference revealed that, for Internet users in China,

Chinese internet TV brands LeTV and Xiaomi fell into the category of "mainstay

products with high reviews" while the foreign brand LG and Chinese traditional

brands Hisense and Skyworth belonged to the category of "niche products with

high reviews." It is noteworthy that Xiaomi and LeTV were highly mentioned online

but their brand sentiment rates were lower than traditional TV brands LG, Hisense

and Skyworth. This indicated that although those internet TV brands seemed to

have higher brand awareness, more time and efforts are required for them to gain a

higher degree of trust from internet users.

Table 1: Brand Competition Analysis

Brand

Position Brand

Actual Sales Performance on

Tmall and JD

Candidate

Buyers User Analysis

Mainstay

Products

with High

Reviews

Xiaomi,

LeTV

Sales of Xiaomi MiTVs and

LeTVs were both outstanding

with MiTV 2 and LeTV S40 Air

and S50 Air making into the top

5 best-selling models; ThinkPad

X250 was its best-seller.

Mainly male

consumers,

aged

between

25-29

Internet users had

positive reviews

about MiTVs in

terms of C/P ratio,

sound effects, and

appearance; aside

from high C/P

ratios, internet

users favored

LeTVs because of

the huge content

sources that it

offers.



DPRPT15111201 24

Brand

Position Brand

Actual Sales Performance on

Tmall and JD

Candidate

Buyers User Analysis

Niche

Products

with High

Reviews

LG,

Hisense,

Skyworth

LG and Hisense had higher

brand sentiment rates than

Skyworth but Skyworth TVs sold

better.

Mainly male

consumers,

aged

between

25-24

Internet users

focused more on

high C/P ratio of

ASUS LCD TVs.

Niche

Products

with

Average

Reviews

Konka Konka was yet to be included

into top 10 best-selling brands

Mainly male

consumers,

aged

between

25-29

Traditional TV

brand Konka

recently received

numerous criticisms

about its product

quality.

Source: MIC, November 2015

Consumer Preference Analysis

During 15 May 2015 and 15 August 2015, most domestic and foreign LCD TV

shoppers in China were men and were aged between 25 and 34. Up to 75% of

those who purchased MiTVs or LeTVs were men, reflecting that men tend to favor

internet TVs.

Top-5 best-selling LCD TV models in China over the research period were KKTV

K43, Xiaomi MiTV2 40-inch, LeTV S40 Air, Xiaomi MiTV2 49-inch, and LeTV S50

Air. They are all Internet TVs. Despite having fewer models, Internet TVs tend to

have higher sales volumes on online stores compared to traditional TVs, given

more appealing pricing and higher-end specs.

When buying a LCD TV, Chinese consumers cared more about enhanced

definition and C/P ratio. This indicated that although Internet TVs, with higher C/P

ratios, tend to sell better, consumers still weighed more on enhanced definition and

sound effects. TV brands who have been long dedicated to enhanced picture color,

definition and sound effects have won the acknowledgement from internet users.

Abundant content sources are one of the reasons that internet users prefer LeTVs

and MiTVs over traditional TVs. Therefore, TV content richness seems to be one of

essential factors for brands to attract more internet users.



DPRPT15111201 25

APPENDIX

Glossary of Terms

C/P Ratio Cost/Performance Ratio

LCD TV Liquid Crystal Display Television

NSR Net Sentiment Rate



DPRPT15111201 26

List of Companies

17TV

Changhong

Coocaa

Haier

Hisense

JD

KKTV

Konka

LeTV

LG

Philips

Samsung

Sharp

Skyworth

Sony

TCL

Tmall

Xiaomi

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Brand Competition and Consumer Preference of the Chinese LCD TV Market