The LCD TV market is in for a shake up with some brands set to disapear claims a senior BenQ executive. The comments come as Sony mounts a major assault on the LCD market.
The head of BenQ’s Digital Media Group Peter Chen has claimed that many small LCD TV brands will not survive going forward.He claims that many minor brands will be knocked out of the market over the next few years as the industry is currently amid a fierce price war, but they disagree on what is the best way to survive.
Peter Chen, general manager of BenQ’s Digital Media Business Group, pointed out yesterday that the world’s top six vendors, including Sharp, Philips, Samsung Electronics, Sony, LG, and Panasonic have more than 60% of the worldwide market share. Another player set to grab share is Sony. Research shows that the market share of the top vendors continues to rise, leaving little room for minor brands, he said.
Frank Lee, vice president of Kolin, which markets its Olevia-branded LCD TVs in the US, said that LCD TV brands cannot survive in the future unless they can rank in the top five in that particular market.
He added that only the top three in a market can make profits. The Olevia brand was ranked third in the US LCD TV market in terms of volume in the first quarter of this year, according to DisplaySearch.
Michael Chen, spokesperson for Sampo, said that, in the next two to three years, vendors will depend heavily on price campaigns in order to boost demand and their market share. He said prices for LCD TVs will fall fast, forcing some vendors to bow out.
BenQ’s Chen said a vendor’s competitive edge will come from vertical integration. He pointed out that most of the world’s top vendors have panel supply from their own plants or affiliates. The BenQ group includes one of the world’s largest panel makers, AU Optronics (AUO).
However, Lee said many other vendors, including Kolin, are stressing integration in the channel. He claimed that because Kolin is not affiliated with a panel maker it has flexibility, and LCD TV vendors may get better panel prices due to competition among potential suppliers.
Sampo’s Chen said minor brands can still survive by developing niche markets, and their competitive edge will come from a good grasp of the channel