Abstract

LCD TV has emerged as one of the mainstream products among various FPD TVs. Players such as Toshiba, Sony, and Panasonic have high hopes for its potential, especially Toshiba and Sony, who are gradually putting all their bets on it. But as the production technology of LCD TV is close to maturity, the entry barrier is no longer intimidating. What is more, the core production region for LCD TV panels is South Korea and Taiwan, undermining the advantages Japanese players used to hold. In China, also, domestic LCD TV brands offer products with higher cost/performance ratios. This has driven Japanese brand-name players to focus on R&D for better display performance. Toshiba's Meta Brain technology, Sony's full HD panel, BRAVIA EX engine, and WCG-CCFL, as well as Panasonic's V-real technology, are all efforts to enhance display performance.

Strategically, Sony and Toshiba are putting emphasis on larger LCD TVs. Sony estimates that its LCD TVs of 32 inches and above are making up 50% of its total sales volume. Panasonic, by contrast, emphasizes the development of PDP TVs, and more or less positions LCD TV as a supplementary product. Price-wise, the three brands as a whole cover the middle to high-end LCD TV market in China, particularly Sony.

The Chinese home appliance channel network is now experiencing a major transformation. On the one hand, there is the entry of foreign channel players; such as Best-Buy acquiring a controlling stake in Jiangsu Five Star, and thus turning into China's fourth largest channel player. On the other hand, domestic Chinese players are merging and expanding; such as GOME acquiring Yongle, and color TV makers like TCL and Skyworth are building chain stores like Xingfushu in third or fourth-tier cities. Therefore, Japanese brand-name players will need to not only organize their own sales networks and cooperate with home appliance chain stores in first and second-tier cities, but also explore opportunities in third and fourth-tier cities as well. Currently, it looks like Toshiba is making the most considerable progress in this area.

Appendix

Glossary of Terms

List of Companies