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Net TVs are popular sellers

(China Daily)
Updated: 2009-07-20 13:19

Internet TV sets were on display at a recent Internet Protocol Television promotional fair in Beijing. The sets are proving popular sellers among young, technically savvy consumers. [Asianewsphoto]

Newlyweds Owen Lu and Shirley Li got married in May and bought a Hisense Blue Media V88 series Internet TV for their new home.

The couple represents the urban post-80s generation. Both work for international firms. They are digital-gadget fans and enjoy experiencing new trends.

"Internet TV is the new fashion," Li said. "That's why we chose it."

Although the price is much higher than that of a common LED television set, they consider it a cost-effective purchase.

Lu said the merger of Internet and TV functions was practical.

"Instead of one us lying on the bed staring at the PC screen while the other sits on the sofa watching TV, we can sit together and share the pleasure," Lu said.

"In addition, Internet TV makes our living room an entertainment center for family parties and gatherings for friends," he said.

Since Internet TVs were introduced to the domestic market in March, the products have become popular sellers.

For Hisense, Internet TV sales exceeded 1,000 during the May Day holiday.

Other domestic Internet TV producers such as TCL, Changhong and Skyworth also reported strong sales.

To expand their share of this emerging market, each brand adds distinctive features to attract more customers.

Skyworth added a Karaoke function to its Internet TV. Changhong features educational programs. But challenges remain, according to industry watchers.

First, Chinese manufacturers must keep a watchful eye on the foreign competition.

Although Samsung is the only foreign company to introduce Internet TVs in China, foreign makers have been introducing Internet TVs in other markets since the early 1990s.

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Thus, foreign producers have a more established marketing system in place. There are other differences in how Internet TVs are packaged.

According to Xu Liyan, an information technology analyst at SeriChina Economic Research Institute, domestic companies are concentrating their services on video offerings.

Each brand in China offers only one or two Internet websites, making the source of information limited in comparison to foreign brands.

Foreign producers offer joint platforms from open suppliers such as Intel and Yahoo.

"Domestic Internet TV acts more like a video player, but foreign producers have taken a further step to integrate information. The latter will surely be more competitive in the long term," Xu said.

Another challenge lies in profit margins.

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