On the evening of July 3rd, LeTV officially announced that as of the three years since the LeTV Super TV was listed, as of June 30, 2016, cumulative sales of about 7 million units will be reached, and at the end of the year it will hit 10 million units. On the same day, in order to celebrate the third anniversary of the sale of LeTV SuperTV, LeTV announced the launch of the “Luxury Eco†series of offline experience.
If LeTV achieves its established sales target by the end of the year, that is, 6 million units in 2016, it is expected to become the third largest domestic TV sales volume. This growth rate even surpassed the previous millet phone. In this regard, Le Shi, the new president of the Army has said, Liang Jun, "with other vendors operating content is different, LeTV is operating the user."
Strange point of view: LeTV as a new color TV brand, his amazing growth rate. What motivated LeTV to grow so fast?
Xiao Xiao: LeTV's definition of Super TV is "ecology." Or that it is better to use, but also more "informative" available. However, the king’s wife sells melons and sells her boasts, and she will never say anything against her.
In my opinion, the successful growth of LeTV has three special reasons: First, the Internet culture. Including the rebelliousness of young consumer groups, the degree of friendliness to traditional brands has declined; the speed and efficiency of Internet communication have greatly improved the feasibility of the initial operation of new brands; the highly transparent Internet information has brought about the value of traditional business brands. The shrinking of the margin; and LeTV's skilled use of the Internet in this set of marketing ideas.
Second, the industry features such as LCD and other new technology color TV and smart technology. For example, the huge energy of the foundry industry; the highly integrated and standardized technology of the core components; the integration trend of color TV applications and the Internet. These factors determine that a new brand can easily "create" a good product. Such as music, millet, micro whale, popular, etc., regardless of sales, the product is very good.
Third, the positioning of music as the product - "high with low prices." Regardless of LeTV's use of words and packaging, and no matter how expensive the high-end goods in his product system, it cannot hide the core sales of LeTV Super TV from the point of "high allocation and low price". Especially in the age of the Internet, information is highly transparent and spreads rapidly, and "fair and inexpensive" products are easy to spell out. Explosive money culture.
Strange point: Your top three reasons can't seem to summarize the success of LeTV's success: For example, the first and second articles are the same for all brands, and the "high and low price" is also the essence of TV brands for all Internet brands. So why only LeTV got a huge sales volume soon?
Xiao Xiao: Indeed, compared with Xiaomi TV, LeTV is now at least 3-4 times the size of Xiaomi TV. The cool giants of Skyworth, the traditional giant, only gained 1 million in 2015, only one third of LeTV. In comparison, LeTV is indeed very successful, and it is almost the most successful in the new brand.
However, the other side of the matter is: LeTV made a loss of 47.34 million yuan in the first year of its establishment; in 2014, the loss amounted to 386 million yuan; by 2015, the amount of losses had been enlarged to 731 million yuan. According to the China Times report, now LeTV's TV business, LeTV has achieved a debt of 5.02 billion yuan at the end of 2015, total assets of more than 4.818 billion yuan, and net assets of -2.02 billion yuan.
Or, LeTV's TV sales run fastest - but losing money is also the most and fastest. As I mentioned above, "high allocation and low price" is the core of the popularity of LeTV products. At this point, LeTV is farther away than other new brands (pay more). This can explain why so many new TV brands, music as the largest sales!
Odd interest point: LeTV TV business grows fast and loses money. So is this kind of development model success or failure? Le is considered to choose this mode of development.
Xiao Xiao: I will answer your second question first. What is music like to choose this development model? The domestic color TV market is a very stable market. The total size has not changed much in recent six years, or there is little room for growth. At the same time, in the past 10 years or more, the domestic giants are gradually growing, because the Japanese, Korean and Europe and the United States Department of TV is quitting the mainstream.
How can a new brand rise in a market where the total sales volume is stable and the major brands continue to strangling foreign brands? The most direct method is "self-blooding." Take real money to subsidize consumers. Internet products are not only the hardware of LeTV and Xiaomi's mobile phones. Isn't the starting point for Didi taxis and WeChat payments also so dry?
"Putting a tiger's mouth is not only dangerous, but it is really bleeding." So does LeTV be an unsuccessful model?
The answer does not depend on LeTV itself, but the entire industry ecology. First of all, LeTV should stick to it; second, LeTV's opponents must be eliminated; LeTV's successful transformation to achieve profitability - this is the three steps of the LeTV model. Now LeTV is still in the first step: that LeTV needs to persist in becoming an industry giant and then watching opponents rot. However, the former can be realized by burning money, but the latter is not necessarily.
Because LeTV becomes a giant, it only needs to absorb the market's share of the latecomers, and it can get rid of relatively weak brands. You see, LeTV said that he is stronger than Samsung Sony in China - because Samsung and Sony have been declining for the past ten years, they haven't been the top brands in the market. This is actually worse than "bad".
However, it is not easy to kill market opponents. Because these opponents are at the forefront of the industry, especially the top three brands. Only by taking away the advantages of these brands, and not Lexie and them, LeTV has the space to achieve its own transformation and commercial profitability.
An example can be used to describe the scene of LeTV. It is the Xiaomi mobile phone. Millet handsets have grown rapidly, relying on the share of weaker brands; however, Xiaomi has grown, Huawei has grown, and its strong rivals have not been destroyed. Therefore, it is very difficult for Xiaomi’s mobile phone to switch now – to buy expensive mobile phones, Apple and Huawei, why is it? What about millet? Assuming that Xiaomi grew up, Apple and Huawei will not succeed. Xiaomi is really bully now - but it is a hypothesis. The truth is that Xiaomi is now facing the growth bottleneck of mobile phones, the bottleneck of the transition, the competitive bottleneck of similarly thinking products, and international The intellectual property bottlenecks and other huge problems.
Therefore, I think that the growth of LeTV as the premise of "losing money, subsidizing, and burning money" is not a difficult task. A good product for losing money will always sell. However, how to turn back is the key to truly determining whether the brand can survive.
Indeed, music is now very beautiful, millet phone is not very beautiful? Nokia's mobile phones have been even more beautiful, Sharp's worst time is half of the world's large-size LCD TVs! However, scenery is not equal to success, it does not mean that it will not fail.
Odd point of view: Do you mean that LeTV is a possible failure?
Xiao Xiao: Any company needs to be profitable. Before there is no profitable, stable and stable continuous profit model, it is difficult to say that LeTV's innovation is desirable. This is also the "integrity" of the music ecology.
That is to say, the so-called ecology, so-called content, software, and hardware of LeTV are combined to live on the "transition of the capital market." If all blood transfusions stop today, the LeTV building will soon collapse. This is a dangerous game. And LeTV's situation is much worse than that of Xiaomi.
Xiaomi is the first player in Internet thinking. At that time, there were not many imitators and not many challengers. Traditional enterprises also responded to fatigue. However, what is Lehman's current content, mobile phone, TV, and future car? More importantly, traditional companies have already learned to play online. Assuming that TV, Xiaomi, Kukai, etc. do not play the Internet, then LeTV is now not 7 million, and may already have exceeded 10 million - this is competition.
Let's view the pattern we have delineated: "Ecology" is based on scale. These competitors have limited the speed of LeTV’s scale, increased the cost of LeTV’s scale, and even grabbed the space for LeTV’s scale—it is a fatal challenge. Just like the transformation of Xiaomi's mobile phone, Huawei has become the ultimate obstacle: not only is it an obstacle to further growth, but also a barrier to profitability in transition.
Let’s talk about ecology. Then talk about ecology with him: The ecology of color TV is very complicated. Core technologies, radio and television licenses, content resources, brand recognition, competing products, technology upgrades ... ... a lot of dimensions of the ecology, music as the homework to be done is still a lot.
Odd view point: LeTV's celebration party, LeTV made a new statement, called "Different from the operation content of other manufacturers, LeTV is operating the user." How to understand this new formulation?
Xiao Xiao: It seems to me that LeTV is the bigger pie being painted. If it is operational content, then it is television-content, a circle of two points. Talking about users, LeTV can say that television, mobile phones, cars, VR, and content are all inside. This is an ecological network.
However, the new formulation could not solve LeTV's new financial problems and could not replace the value of profitability for the survival of the company. Or rather, because we have not yet seen the “target of capital returns,†we must continue to find other goals, bigger goals, more story goals, and more attractive and idealistic goals – capital. Markets, especially venture capital, like this.
However, it is easy to "operate" users. If it is easy to do, then Apple and General Motors, Boeing aircraft is not just a company - the user! Is human!
In this regard, the formulation of the traditional industry is "product diversification" under a single brand, which spans diversification. This is a bit to let Hisense merger SAIC feeling - LeTV is not a color TV, car it? This idea does not work. It cannot be said that there is no reason, but at least today no one has succeeded.
Moreover, I think "operating users" is somewhat "controlling users": it means that you use hardware, content, what movies, TV dramas, sports, mobile phones, computers, cars, real estate (LeTV also engages in real estate), etc. Come to LeTV: Bundle, Pack, Offer. - Let's suddenly become a "big supermarket." This has two problems. First, consumers are willing to accept this model; Second, does LeTV have such a large capacity and appetite. The answers to both questions are highly uncertain.
Therefore, the slogan is for people to listen to. If you really use this as an investment, wouldn’t it be that poets and literary men are the richest people in the world—they are best at slogans and tell stories!
Odd view point: No matter what the future is, at least the amount of music is now very large, and the increase is sufficient. This will have a great impact on the domestic color TV industry. Do you think that the domestic color TV industry can hold off the LeTV offensive it?
Xiao Xiao: This is indeed the case. LeTV’s strength is that in the context of the overall stable size of the color TV market, you will eat less and eat less.
However, as mentioned above, LeTV is to eat the end of the market first. It is Sharp, Sony, Samsung, etc. that LeTV said. This is "better than bad." However, the tough bones are behind, Hisense, Skyworth, and TCL – these three are the 345th in the global market, and their strength is extraordinary. Unable to determine these three, LeTV will not be able to turn around on the road to "loss subsidies". As a result, it will only consume itself.
Therefore, LeTV’s structural impact on the entire industry has already begun: eat up the share of those rotten brands; however, the decisive battle in the near future, and the strong brand of the market have not directly challenged. What's more, there is also millet and cool opening beyond LeTV. Especially millet TV, the overall price is higher than LeTV - there are reasons to believe that LeTV lose money, millet can have a surplus, at least flat. Now Xiaomi and Coolo are also new brands with a million sales volume. The challenge for the growth of LeTV as a result of these two companies will be continuous.
In other words, LeTV challenges others and others are challenging LeTV. For LeTV, this is not a simple attack. He also has a defensive side. And from the point of view of “eating badâ€, early growth is often easy, and later qualitative change is the most difficult. Today, LeTV is still looking for easy food, not hard-boiled bones. This does not matter whether or not the traditional industry can stop LeTV - LeTV has not yet gathered the energy to attack the industry leader.
If LeTV achieves its established sales target by the end of the year, that is, 6 million units in 2016, it is expected to become the third largest domestic TV sales volume. This growth rate even surpassed the previous millet phone. In this regard, Le Shi, the new president of the Army has said, Liang Jun, "with other vendors operating content is different, LeTV is operating the user."
Strange point of view: LeTV as a new color TV brand, his amazing growth rate. What motivated LeTV to grow so fast?
Xiao Xiao: LeTV's definition of Super TV is "ecology." Or that it is better to use, but also more "informative" available. However, the king’s wife sells melons and sells her boasts, and she will never say anything against her.
In my opinion, the successful growth of LeTV has three special reasons: First, the Internet culture. Including the rebelliousness of young consumer groups, the degree of friendliness to traditional brands has declined; the speed and efficiency of Internet communication have greatly improved the feasibility of the initial operation of new brands; the highly transparent Internet information has brought about the value of traditional business brands. The shrinking of the margin; and LeTV's skilled use of the Internet in this set of marketing ideas.
Second, the industry features such as LCD and other new technology color TV and smart technology. For example, the huge energy of the foundry industry; the highly integrated and standardized technology of the core components; the integration trend of color TV applications and the Internet. These factors determine that a new brand can easily "create" a good product. Such as music, millet, micro whale, popular, etc., regardless of sales, the product is very good.
Third, the positioning of music as the product - "high with low prices." Regardless of LeTV's use of words and packaging, and no matter how expensive the high-end goods in his product system, it cannot hide the core sales of LeTV Super TV from the point of "high allocation and low price". Especially in the age of the Internet, information is highly transparent and spreads rapidly, and "fair and inexpensive" products are easy to spell out. Explosive money culture.
Strange point: Your top three reasons can't seem to summarize the success of LeTV's success: For example, the first and second articles are the same for all brands, and the "high and low price" is also the essence of TV brands for all Internet brands. So why only LeTV got a huge sales volume soon?
Xiao Xiao: Indeed, compared with Xiaomi TV, LeTV is now at least 3-4 times the size of Xiaomi TV. The cool giants of Skyworth, the traditional giant, only gained 1 million in 2015, only one third of LeTV. In comparison, LeTV is indeed very successful, and it is almost the most successful in the new brand.
However, the other side of the matter is: LeTV made a loss of 47.34 million yuan in the first year of its establishment; in 2014, the loss amounted to 386 million yuan; by 2015, the amount of losses had been enlarged to 731 million yuan. According to the China Times report, now LeTV's TV business, LeTV has achieved a debt of 5.02 billion yuan at the end of 2015, total assets of more than 4.818 billion yuan, and net assets of -2.02 billion yuan.
Or, LeTV's TV sales run fastest - but losing money is also the most and fastest. As I mentioned above, "high allocation and low price" is the core of the popularity of LeTV products. At this point, LeTV is farther away than other new brands (pay more). This can explain why so many new TV brands, music as the largest sales!
Odd interest point: LeTV TV business grows fast and loses money. So is this kind of development model success or failure? Le is considered to choose this mode of development.
Xiao Xiao: I will answer your second question first. What is music like to choose this development model? The domestic color TV market is a very stable market. The total size has not changed much in recent six years, or there is little room for growth. At the same time, in the past 10 years or more, the domestic giants are gradually growing, because the Japanese, Korean and Europe and the United States Department of TV is quitting the mainstream.
How can a new brand rise in a market where the total sales volume is stable and the major brands continue to strangling foreign brands? The most direct method is "self-blooding." Take real money to subsidize consumers. Internet products are not only the hardware of LeTV and Xiaomi's mobile phones. Isn't the starting point for Didi taxis and WeChat payments also so dry?
"Putting a tiger's mouth is not only dangerous, but it is really bleeding." So does LeTV be an unsuccessful model?
The answer does not depend on LeTV itself, but the entire industry ecology. First of all, LeTV should stick to it; second, LeTV's opponents must be eliminated; LeTV's successful transformation to achieve profitability - this is the three steps of the LeTV model. Now LeTV is still in the first step: that LeTV needs to persist in becoming an industry giant and then watching opponents rot. However, the former can be realized by burning money, but the latter is not necessarily.
Because LeTV becomes a giant, it only needs to absorb the market's share of the latecomers, and it can get rid of relatively weak brands. You see, LeTV said that he is stronger than Samsung Sony in China - because Samsung and Sony have been declining for the past ten years, they haven't been the top brands in the market. This is actually worse than "bad".
However, it is not easy to kill market opponents. Because these opponents are at the forefront of the industry, especially the top three brands. Only by taking away the advantages of these brands, and not Lexie and them, LeTV has the space to achieve its own transformation and commercial profitability.
An example can be used to describe the scene of LeTV. It is the Xiaomi mobile phone. Millet handsets have grown rapidly, relying on the share of weaker brands; however, Xiaomi has grown, Huawei has grown, and its strong rivals have not been destroyed. Therefore, it is very difficult for Xiaomi’s mobile phone to switch now – to buy expensive mobile phones, Apple and Huawei, why is it? What about millet? Assuming that Xiaomi grew up, Apple and Huawei will not succeed. Xiaomi is really bully now - but it is a hypothesis. The truth is that Xiaomi is now facing the growth bottleneck of mobile phones, the bottleneck of the transition, the competitive bottleneck of similarly thinking products, and international The intellectual property bottlenecks and other huge problems.
Therefore, I think that the growth of LeTV as the premise of "losing money, subsidizing, and burning money" is not a difficult task. A good product for losing money will always sell. However, how to turn back is the key to truly determining whether the brand can survive.
Indeed, music is now very beautiful, millet phone is not very beautiful? Nokia's mobile phones have been even more beautiful, Sharp's worst time is half of the world's large-size LCD TVs! However, scenery is not equal to success, it does not mean that it will not fail.
Odd point of view: Do you mean that LeTV is a possible failure?
Xiao Xiao: Any company needs to be profitable. Before there is no profitable, stable and stable continuous profit model, it is difficult to say that LeTV's innovation is desirable. This is also the "integrity" of the music ecology.
That is to say, the so-called ecology, so-called content, software, and hardware of LeTV are combined to live on the "transition of the capital market." If all blood transfusions stop today, the LeTV building will soon collapse. This is a dangerous game. And LeTV's situation is much worse than that of Xiaomi.
Xiaomi is the first player in Internet thinking. At that time, there were not many imitators and not many challengers. Traditional enterprises also responded to fatigue. However, what is Lehman's current content, mobile phone, TV, and future car? More importantly, traditional companies have already learned to play online. Assuming that TV, Xiaomi, Kukai, etc. do not play the Internet, then LeTV is now not 7 million, and may already have exceeded 10 million - this is competition.
Let's view the pattern we have delineated: "Ecology" is based on scale. These competitors have limited the speed of LeTV’s scale, increased the cost of LeTV’s scale, and even grabbed the space for LeTV’s scale—it is a fatal challenge. Just like the transformation of Xiaomi's mobile phone, Huawei has become the ultimate obstacle: not only is it an obstacle to further growth, but also a barrier to profitability in transition.
Let’s talk about ecology. Then talk about ecology with him: The ecology of color TV is very complicated. Core technologies, radio and television licenses, content resources, brand recognition, competing products, technology upgrades ... ... a lot of dimensions of the ecology, music as the homework to be done is still a lot.
Odd view point: LeTV's celebration party, LeTV made a new statement, called "Different from the operation content of other manufacturers, LeTV is operating the user." How to understand this new formulation?
Xiao Xiao: It seems to me that LeTV is the bigger pie being painted. If it is operational content, then it is television-content, a circle of two points. Talking about users, LeTV can say that television, mobile phones, cars, VR, and content are all inside. This is an ecological network.
However, the new formulation could not solve LeTV's new financial problems and could not replace the value of profitability for the survival of the company. Or rather, because we have not yet seen the “target of capital returns,†we must continue to find other goals, bigger goals, more story goals, and more attractive and idealistic goals – capital. Markets, especially venture capital, like this.
However, it is easy to "operate" users. If it is easy to do, then Apple and General Motors, Boeing aircraft is not just a company - the user! Is human!
In this regard, the formulation of the traditional industry is "product diversification" under a single brand, which spans diversification. This is a bit to let Hisense merger SAIC feeling - LeTV is not a color TV, car it? This idea does not work. It cannot be said that there is no reason, but at least today no one has succeeded.
Moreover, I think "operating users" is somewhat "controlling users": it means that you use hardware, content, what movies, TV dramas, sports, mobile phones, computers, cars, real estate (LeTV also engages in real estate), etc. Come to LeTV: Bundle, Pack, Offer. - Let's suddenly become a "big supermarket." This has two problems. First, consumers are willing to accept this model; Second, does LeTV have such a large capacity and appetite. The answers to both questions are highly uncertain.
Therefore, the slogan is for people to listen to. If you really use this as an investment, wouldn’t it be that poets and literary men are the richest people in the world—they are best at slogans and tell stories!
Odd view point: No matter what the future is, at least the amount of music is now very large, and the increase is sufficient. This will have a great impact on the domestic color TV industry. Do you think that the domestic color TV industry can hold off the LeTV offensive it?
Xiao Xiao: This is indeed the case. LeTV’s strength is that in the context of the overall stable size of the color TV market, you will eat less and eat less.
However, as mentioned above, LeTV is to eat the end of the market first. It is Sharp, Sony, Samsung, etc. that LeTV said. This is "better than bad." However, the tough bones are behind, Hisense, Skyworth, and TCL – these three are the 345th in the global market, and their strength is extraordinary. Unable to determine these three, LeTV will not be able to turn around on the road to "loss subsidies". As a result, it will only consume itself.
Therefore, LeTV’s structural impact on the entire industry has already begun: eat up the share of those rotten brands; however, the decisive battle in the near future, and the strong brand of the market have not directly challenged. What's more, there is also millet and cool opening beyond LeTV. Especially millet TV, the overall price is higher than LeTV - there are reasons to believe that LeTV lose money, millet can have a surplus, at least flat. Now Xiaomi and Coolo are also new brands with a million sales volume. The challenge for the growth of LeTV as a result of these two companies will be continuous.
In other words, LeTV challenges others and others are challenging LeTV. For LeTV, this is not a simple attack. He also has a defensive side. And from the point of view of “eating badâ€, early growth is often easy, and later qualitative change is the most difficult. Today, LeTV is still looking for easy food, not hard-boiled bones. This does not matter whether or not the traditional industry can stop LeTV - LeTV has not yet gathered the energy to attack the industry leader.
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