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Consumers' Brand Preferences in Greater China's LCD TV Market

April 13, 2007 / Han-I Chiang

14 Page, Topical Report

US$1,280 (Single User License)

Abstract

As technology advances and prices fall, the LCD TV market is growing and is attracting a new wave of consumers. Understanding the purchasing behavior of these consumers will allow vendors to more effectively develop their market strategies. This report is based on analysis and comparisons of results of surveys conducted by MIC (Market Intelligence Center) on large-size LCD TV consumers in urban areas in Taiwan and China. Topics discussed include target brands of intended purchases, brand image, brand positioning, and factors in consumers' brand evaluation.

List of Topics

Analyzes surveys conducted by MIC (Market Intelligence Center) on LCD TV brand preferences among consumers in Greater China, including major urban areas in China and Taiwan. Examines target brands of intended purchases, brand image, brand positioning, and factors in consumers' brand evaluation.

Acer, Amoi, AOC, Asus, BenQ, Changhong, Chimei, Haier, Hisense, Hitachi, Kolin, Konka, Lenovo, LG, Olevia, Panasonic, Philips, Polyvision, Prima, Proton, Sampo, Samsung, Sharp, Shinco, Skyworth, Sony, SVA, Tatung, TCL, Teco, Toshiba, Viewsonic

List of Figures
Figure 1 Taiwanese Market: LCD TV Brand Image Ranking

Figure 2 Chinese Market: LCD TV Brand Image Ranking

Figure 3 Taiwanese Market: LCD TV Brand Status and Price Reasonableness

Figure 4 Taiwanese Market: LCD TV Brand Status and Price Reasonableness for Brands Other than Sony and Panasonic

Figure 5 Taiwanese Market: LCD TV Brand Status and Likelihood of Purchase

Figure 6 Taiwanese Market: LCD TV Brand Status and Likelihood of Purchase for Brands Other than Sony and Panasonic

Figure 7 Chinese Market: LCD TV Brand Status and Price Reasonableness

Figure 8 Chinese Market: LCD TV Brand Status and Likelihood of Purchase

Figure 9 Taiwanese Market: Factors Influencing Different Income Groups' Classification of Brands as High-end

Figure 10 Chinese Market: Factors Influencing Different Income Groups' Classification of Brands as High-end

List of Tables
Table 1 Taiwanese Market: Target LCD TV Brands of Consumers' Intended Purchase

Table 2 Chinese Market: Target LCD TV Brands of Consumers' Intended Purchase

LCD TV Brands in the Taiwanese Market

Imported Brands Gain Ground

As LCD TV has entered the growth phase, imported LCD TV brands have become increasingly popular among Taiwanese consumers. MIC's surveys indicate that imported brands now account for four of the top five brands targeted by consumers, up from two three years ago. Japanese and Korean brands account for the top three in most brand image categories; in terms of the relationship between perceived status and reasonable prices, and between perceived status and purchase intention, imported brands are also ahead of the pack. It is apparent from these results that imported LCD TV brands are having an increasingly important impact in the Taiwanese market.

IT Hardware Brands Stand Out; Home Electronics Brands Improve

At the same time, IT hardware brands are beginning to make inroads as well. Chimei, BenQ, and Viewsonic are all increasingly mentioned as targets of planned purchases. Chimei rose from tenth in 2005 to seventh in 2007; BenQ from fifteenth in 2005 to tenth in 2007; and Viewsonic from sixteenth in 2005 to twelfth in 2007.

IT hardware brands and domestic home appliance brands including Viewsonic, Sampo, and Chimei are doing particularly well in certain market segments where they are increasingly seen as having higher brand status and being more reasonably priced, and are eliciting higher levels of purchase intention. Sampo and Tatung have also cracked the national top three in terms of after-sales service guarantee.

LCD TV Brands in the Chinese Market

Influence of Imported Brands Growing

In Beijing, Shanghai, and Guangzhou imported brands have accounted for at least three of the top five brands most popular among prospective buyers since 2005. Japanese and Korean brands dominate the brand image rankings. Foreign brands are also ranked highest in terms of the relationship between perceived status and reasonable prices, and between perceived status and purchase intention. This indicates that foreign brands maintain a strong presence in the minds of consumers in these three cites.

Local Chinese Brands Gaining Strength

The survey reveals that Haier and TCL are both considered positively in terms of the relationship between perceived status and reasonable prices, and between perceived status and purchase intention, establishing domestic Chinese brands as legitimate competitors for international brands. In addition, Haier rose in the rankings of planned purchases from thirteenth in 2005 to eight in 2007.

In terms of after-sales service guarantee, Haier has entered the top two. Moreover, in certain market segments Chinese domestic brands, such as Changhong and Hisense are seen as having high status and being reasonably priced, and enjoy high rates of purchase intention. These successes demonstrate the impact of local brands.

Other Brands Face Struggle

The survey results also indicate that Taiwanese brands are mostly viewed as mid-range, with little variation and no clear examples of brands moving into the high-end territory. Taiwanese brands will need to strengthen their brand-name recognition in order to make progress in these three Chinese cities.

Appendix

LCD TV Consumer Demand in the Taiwanese Market (2007 Survey)

Consumers Surveyed

Consumers in urban areas who express their intention to purchase a 32-inch or larger LCD TV within the upcoming year. Furthermore, these consumers intend to place the LCD TV they plan to buy in the living room of their home.

The survey focused on the cities of Taipei, Taichung, and Kaohsiung - leading economic and consumer centers in north, central, and south Taiwan respectively. In order to further improve the accuracy of the survey, consumers targeted for this survey must have a high intention to purchase a LCD TV, and must be people who can make a final decision on such a purchase.

Period in Which Survey Was Conducted

August 2006

Effective Survey Samples

The total number of effective samples was 303. In order to guarantee the accuracy of the survey results and to effectively segment different target markets, the sample ratio between Taipei, Taichung, and Kaohsiung was 5:2:3. People younger than 30, between 31 and 40, and older than 41 each accounted for 1/3 of survey samples. Men and women accounted for 50% each.

LCD TV Consumer Demand in the Taiwanese Market (2007 Survey): Market Segment Analysis

Market Segmentation by Region

Taipei

Taichung

Kaohsiung

Market Segmentation by Sex

Male

Female

Market Segmentation by Age

Below 30

31-40

Above 40

Market Segmentation by Educational Background

High school and below

Vocational college

University and higher

Market Segmentation by Income Group

High income: average monthly household income above NT$140,001 (US$4,204.2; US$1=NT$33.3)

Upper middle class income: average monthly household income between NT$80,001 - NT$140,000 (US$2,402.4 - US$4,204.2)

Middle class income: average monthly household income below NT$80,000 (US$2,402.4)

Market Segmentation by Product Purchase Budget

High budget: above NT$60,001 (US$1,801.8)

Mid-range budget: between NT$40,001 - NT$60,000 (US$1,201.2 - US$1,801.8)

Low budget: below NT$40,001 (US$1,201.2)

Market Segmentation by Size of Planned LCD TV Purchase

LCD TV (S): planning to purchase a 32-inch LCD TV

LCD TV (M): planning to purchase a LCD TV sized between 32 and 37 inches (not including 32-inch)

LCD TV (L): planning to buy a LCD TV larger than 37 inches

LCD TV Consumer Demand in the Chinese Market (2007 Survey)

Consumers Surveyed

Consumers in urban areas - including Beijing, Shanghai, and Guangzhou - who express their intention to purchase a 27-inch or larger LCD TV within the upcoming year. Furthermore, these consumers intend to place the LCD TV they plan to buy in the living room of their home.

Period in Which Survey Was Conducted

August-September 2006

Effective Survey Samples

The total number of effective samples was 920. In order to guarantee the accuracy of the survey results and to effectively segment different target markets, Beijing, Shanghai, and Guangzhou all had approximately 300 effective samples; people younger than 30, between 31 and 40, and older than 41 each accounted over 30% of effective samples; men and women accounted for 50% each.

LCD TV Consumer Demand in the Chinese Market (2007 Survey): Market Segment Analysis

Market Segmentation by Region

China:urban areas including the cities of Beijing, Shanghai, and Guangzhou

Beijing: a major city in the north of China

Shanghai: a major city in central China

Guangzhou:a major city in the south of China

Market Segmentation by Sex

Male

Female

Market Segmentation by Age

Below 30

Between 31 and 40

41 and above

Market Segmentation by Educational Background

Secondary school and below

Vocational college

Undergraduate studies and above

Market Segmentation by Income Group

High income: average monthly household income above 9,000 RMB (US$1,167.3; US$1=7.71RMB)

Upper middle class income: average monthly household income between 6,000 RMB - 8,999 RMB (US$778.2 - US$1,167.3)

Middle class income: average monthly household income between 3,500 RMB - 5,999 RMB (US$454.0 - US$778.2)]

Market Segmentation by Product Purchase Budget

high budget: above 15,000 RMB (US$1,945.5)

mid-range budget: between 10,000 RMB - 14,999 RMB (US$1,297.0 - US$1,945.5)

low budget: below 9,999 RMB (US$1,297.0)

Market Segmentation by Size of Planned LCD TV Purchase

LCD TV (P): between 27-30 inches (including 30-inch)

LCD TV (S): 32-inch

LCD TV (M): between 32 and 37 inches (not including 32-inch)

LCD TV (L): above 37-inch (not including 37-inch)

Chinese Market (Beijing, Shanghai, Guangzhou)

2006 survey targeted consumers planning to purchase a 27-inch or larger LCD TV in the upcoming 12 months and with average monthly household incomes of 3,500 RMB (US$454.0) and higher

2005 survey targeted consumers planning to purchase a 27-inch or larger LCD TV in the upcoming 12 months and with average monthly household incomes of 5,000 RMB (US$648.5) and higher

Taiwanese Market (Taipei, Taichung, Kaohsiung)

2006 survey targeted consumers planning to purchase a 32-inch or larger LCD TV in the upcoming 12 months

2005 survey targeted consumers planning to purchase a 27-inch or larger LCD TV in the upcoming 12 months

Note on MIC Survey Data Used in This Report

This report examines results of surveys conducted by MIC(Market Intelligence Center). In consideration of target market segments, several quotas were used for the survey samples in order to achieve an optimal analysis. Therefore, the sample distribution is not a reflection of actual population statistics. When analyzing material included in this report, please note the source of information and the date of that information. The number of samples belonging to certain market segments does not reach 30, and therefore do not constitute comprehensive statistics; this particular data is provided for your reference only.

List of Companies

Acer		宏碁
Amoi		夏新
AOC		冠捷
Asus		華碩
BenQ		明碁
Changhong		長虹
Chimei		奇美
Haier		海爾
Hisense		海信
Hitachi
Kolin		歌林
Konka		康佳
Lenovo		聯想
LG
Olevia
Panasonic
Philips
Polyvision
Prima		廈華
Proton
Sampo
Samsung
Sharp
Shinco
Skyworth		創維
Sony
SVA		廣電
Tatung		大同
TCL
Teco
Toshiba
Viewsonic

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