Major Chinese TV Brands Expand Market Share with Strategic Supply Chain Integration and Regional Diversification
January 4, 2024 | TrendForceEstimated reading time: 3 minutes
Global TV demand continues to be adversely impacted by inflation in 2023. Even price reductions and promotions on high-priced products have struggled to boost sales as consumers contend with limited disposable income. This has resulted in a decline in shipments for international brands that primarily focus on mid-to-high-end models, according to TrendForce's research.
TrendForce points out that only Hisense and TCL—leveraging their cost advantages—have managed to defy this trend, achieving over 10% growth in shipments. Their market shares have also increased to 13.8% and 12.9%, respectively.
TrendForce indicates that the current surplus in TV panel production capacity, coupled with sluggish demand, necessitates effective management of supply chain resources from upstream to downstream. This is essential not only for enhancing production efficiency and reducing costs but also for the key expansion of market share for panels, brands, and OEMs at present. Furthermore, 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.
In 2023, the top five brands achieve a landmark 62.3% market share; “The bigger the better” trend poised to continue into 2024
A significant rise in TV panel prices in 2023 has led to differentiation among brands becoming increasingly stark. The top five brands—Samsung Electronics, Hisense, TCL, LG Electronics, and Xiaomi—are estimated to achieve a combined market share of 62.3% for the first time. Additionally, generic brands have seen an approximate 9.1% annual growth in shipments as they claim a 16.7% market share. This growth is primarily attributed to North American channel brands launching low-cost TVs since 2H22, a strategy that draws consumers in with initial purchases and encourages subsequent purchases.
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, who may face even tougher operational challenges.
TV brands reorganize supply chains: Cost optimization emerges as key to success in 2024
Historically, giants like Samsung and LG Electronics have enjoyed the backing of their group’s panel makers, swiftly increasing their market share and securing a dominant market position. However, the massive expansion of Chinese panel production capacity and the resulting price competitiveness have led Korean panel makers to exit the supply chain under loss pressures, forcing Korean TV brands to pivot towards collaborations with other panel makers, including an increased reliance on Chinese panel makers.
Nevertheless, as Chinese panel makers assume a greater role in the global TV panel supply, their bargaining power with brands is also on the rise. TrendForce's survey for 2024 predicts Samsung Electronics will significantly reduce its dependency on Chinese panel makers, dropping its procurement share from 55% to 38%, while other brands will continue to source over half of their panels from China.
TV panels (open cell) represent about 45–60% of the total production cost of a TV set. In the context of sustained weak market demand, panel makers may adopt strategies of production control and price maintenance to ensure operational stability. Consequently, TV brands, OEMs, and ODMs can only mitigate costs by optimizing electronic components like backlight units, mechanical components, mainboards, and power boards.
Hisense and TCL, boasting in-house factories both domestically and internationally, are continuously increasing their share of domestic component suppliers to control production costs optimally, thus enhancing the sales competitiveness of their brand products. Additionally, TV OEMs, and ODMs like MOKA, BOEVT, and HKC are expanding their business footprint. By forming strategic alliances with group panel makers and moving into overseas markets like Mexico and Vietnam, they are saving on import tariffs to the US and Europe, while simultaneously securing more orders.
Suggested Items
Increase in Share Capital and Number of Shares in HANZA
04/03/2025 | HANZAOn March 3, HANZA completed the acquisition of Leden Group Oy. Part of the purchase price consisted of 2,300,000 newly issued shares in HANZA AB.
IPC APEX EXPO Newcomer: Faith DeSaulnier of TTM Technologies
04/03/2025 | I-Connect007 Editorial TeamDuring the Newcomer’s Welcome Reception at IPC APEX EXPO, the I-Connect Editorial Team spoke with several first-time attendees. The following is our interview with Faith DeSaulnier, a process engineer based at TTM Technologies’ facility in Forest Grove, Oregon.
My Top 10 Highlights from IPC APEX EXPO 2025
04/03/2025 | Chris Mitchell, IPC VP, Global Government RelationsEvery year, I am reminded what an exciting and fast-paced whirlwind IPC APEX EXPO is—the friends you run into, the new people you meet, the innovations you encounter, and the fascinating discussions you dive into. It’s certainly true that our industry is driven by searchers and problem-solvers, creating endless opportunities at APEX EXPO to connect, collaborate, and shape the future.
TRI Test Solutions at INNOELECTRO 2025
04/02/2025 | TRIAnytest will join INNOELECTRO 2025, held at BOK Sportcsarnok from April 8 – 10, 2025, to showcase TRI's Test Solution.
IPC APEX EXPO 2025 Review: Shifting My Focus to the Show Floor
04/02/2025 | John Watson, CIDIPC APEX EXPO 2025 marked a significant milestone as it celebrated its 25th anniversary. (Personally, I don’t think it looked a day over 20.) If you didn’t attend this great event, why not? This was my 10th anniversary of attending, and it had a distinctly different feel. There was a celebratory atmosphere as both veterans, like myself, and first-time attendees, were drawn into a celebratory occasion marking the significant milestone of the 25th anniversary.