Chinese TV Brands Dominate Japan's Flat-Screen Market for the First Time

Chinese TV brands have captured more than half of Japan's flat-screen TV market for the first time, with Hisense subsidiary TVS Regza leading the market with a 25% share. This is according to market data from Tokyo-based research company BCN. Chinese companies are winning over younger consumers with affordable prices. This is the first time Chinese brands have held a more-than-50% share in Japan's flat-screen TV market since 2004.

The Japanese flat-screen TV market has experienced a significant shift in recent years, with Chinese brands capturing a record-breaking 50.1% share [1]. Hisense subsidiary TVS Regza leads the market with a 25% share, marking the first time Chinese brands have held a more-than-50% share since 2004 [2].

The rise of Chinese TV brands in Japan can be attributed to their cost-effective offerings, which have resonated with younger consumers. This trend is not unique to Japan, as Chinese companies have been gaining ground in other markets as well [1].

According to TrendForce, a global research firm, the decline in consumer electronics demand due to inflation has led to a decline in shipments for international brands focusing on mid-to-high-end models [1]. However, Hisense and TCL, leveraging their cost advantages, have managed to defy this trend, achieving over 10% growth in shipments and increasing their market shares to 13.8% and 12.9%, respectively [1].

The current surplus in TV panel production capacity and sluggish demand necessitate effective management of supply chain resources from upstream to downstream [1]. This vertical or horizontal integration within the supply chain forms a fundamental component for the sustained growth in shipments for TV brands and OEMs going into 2024 [1].

In 2023, the top five brands achieved a landmark 62.3% market share [1]. However, global TV shipments are expected to fall by 2.3% in 2023, heavily impacting brands with shipments below 6 million units, particularly those shipping less than 3 million units [1]. As a result, TV brands are reorganizing their supply chains to focus on cost optimization, which is key to success in 2024 [1].

References:
[1] TrendForce. (3 January 2024). Global TV Shipments to Fall by 2.3% in 2023. https://www.trendforce.com/presscenter/news/20240103-11979.html
[2] Reuters. (15 February 2023). Chinese TV brands capture over half of Japan's flat-screen TV market. https://www.reuters.com/business/media-telecom/chinese-tv-brands-capture-over-half-of-japans-flat-screen-tv-market-2023-02-15/