July 04, 2025

The development of color TV industry is showing signs of decline and see how Konka goes upstream

As a must-have appliance in most households, color TVs are commonly found in every family. However, the industry has recently faced challenges due to rising material costs and shifting market demands. After a period of rapid growth, the color TV sector has started to experience a decline this year. This downturn has raised concerns among industry players about how to reverse the trend. In the first half of this year, online sales saw only minor increases in February and June, while other months recorded lower figures compared to the same period last year. The offline market was hit particularly hard, with a nearly 20% drop in sales. This situation has forced all major TV manufacturers to rethink their strategies and find new ways to stay competitive. Recently, Konka, a well-known Chinese TV brand, released its performance report for the first half of the year. The results were impressive: total revenue reached 11.4 billion yuan, representing a 32.49% increase compared to the previous year. Notably, Konka’s TV business managed to grow against the broader industry trend, showcasing resilience and strategic success. While many companies have resorted to price cuts to boost sales, this approach is no longer effective. Consumers today are more discerning, focusing on product quality, after-sales service, and overall user experience. With the rise of smart homes and internet-connected devices, people now expect their TVs to integrate seamlessly with other home appliances, offering a more convenient and connected lifestyle. Understanding these market shifts, Konka has taken bold steps to restructure its operations. It merged several departments, including multimedia, overseas sales, and display businesses, into the Konka Multimedia Industry Headquarters. This move aimed to streamline operations and enhance collaboration across the entire value chain. As a result, Konka’s color TV sales in the first quarter surged by nearly 40%, with 55-inch models making up over half of the sales mix. Beyond TV manufacturing, Konka has also expanded into other areas. The company is evolving into an investment holding platform, aiming for faster growth through strategic investments. In April, Konka partnered with Hunan Mobile to explore smart home integration, marking a key step toward cross-industry collaboration. Additionally, the company invested 200 million yuan to upgrade its production line to intelligent manufacturing standards. Konka also announced plans to establish an industrial fund worth up to 1 billion yuan with China Orient Asset Management, focusing on sectors like TMT, smart manufacturing, new energy, and healthcare. These moves reflect Konka’s long-term vision to diversify and innovate. To drive future growth, Konka has also refreshed its leadership. In March, the company launched a search for a new generation of senior executives, most of whom are from the "post-70s" generation. This younger leadership brings fresh ideas and greater adaptability, aligning better with current market dynamics. Under their guidance, Konka is expected to navigate the challenges of industrial transformation more effectively and unlock new opportunities for sustainable development.

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