Sofa Information: Storm TV's self-confidence sold more than Xiaomi in one year!

Recently, Liu Yaoping, a Storm TV CEO who claims to be the first time to start a business from a traditional color TV company, told the media that “after Storm TV’s first product is released in October this year, sales will exceed Xiaomi in one year”.


After hearing these words, I believe many people think that Storm TV is bragging. “A brand that has not yet launched a product can be compared with a brand that sells 300,000 TVs a year?” This is certainly a question for most people.

However, I believe that the following three advantages of Stormwind are the shortcomings of Xiaomi TV.

Offline channels and logistics

Why not talk about hardware and content, but first talk about offline channels and logistics, because Xiaomi TV has not touched this area in the past two years.

Wang Chuan, the head of Xiaomi TV, said in an interview with the media in July. “Millet TV has not entered the offline channels so far, and the city coverage for support distribution is limited. The offline experience, installation and after-sales service are also Important factors that affect consumer purchases. Currently, Xiaomi TV is still a small startup company. Once it has undertaken a huge channel cost, it will be difficult to maintain its price/performance advantage, so there is still no plan for self-built channels.”
This is exactly the biggest reason why Xiaomi TV's annual sales volume is only 300,000 units. The starting point of Storm TV is much higher than that of Xiaomi TV.

According to public information, in July of this year, Storm Scientific joined hands with Haier Shun, Aofei Animation, and Three Digital Audio and Video, a subsidiary of Haier Group, to announce the establishment of a joint venture to jointly build Storm TV. Among them, Japan, Japan, and Japan will mainly provide storm TV with logistics, after-sales, channels and other resources.

What kind of company is it?

Baidu Encyclopedia revealed that the daily date began in September 2000. It is a company listed on the Main Board of the Hong Kong Stock Exchange under the Haier Group. It is mainly engaged in the channel integrated service business of Haier and non-Haier brands of other home appliances. Sunshun Brand is the channel integrated service business brand of Haier Electronics Group, and it is positioned as an open platform guided by user experience in the Internet era. The core business of Riri Shun Brand is a four-network integration platform business. The units include: Japan-Shunshun Channel Business, Japan-Sunshun Logistics Business, Japan-Japan-Sunshun Service Business, and Japan-Japan Daily Auxiliary Channel Business.

According to Liu Yaoping's introduction, with the help of the resources of Rishun, Storm's offline channels will cover 6,000 cities, with 17,000 experience stores and 30,000 retail stores. In the future, Storm TV's pre-sales service and installation services will be stronger than other Internet TV brands, and the sales of offline platforms will also exceed 50%.

So what does the offline channel mean for a TV brand?

According to statistics, China has 333 prefecture-level cities, 2,856 county seats and 40,906 townships. In these places, major home appliances such as TVs are still offline. According to AVC's data, although the proportion of online purchases is increasing throughout 2014, it only accounts for 18% of the overall market share.

This is the main reason why e-commerce companies and traditional home appliance companies have chosen to sink channels. For example: Jingdong and Ali proposed rural strategies and went to the rural areas to brush the walls; Skyworth, Hisense and other traditional television manufacturers went to townships to open flagship stores, specialty stores, and even franchise stores.

In fact, Xiaomi TV does not pay less attention to offline channels. There have been industry insiders telling the author that Xiaomi had negotiated with Japanese and Japanese logistics companies, but did not eventually reach cooperation.

content

When it comes to content, the "weakness" of Xiaomi TV is also notorious in the industry. Therefore, only ten million U.S. dollars were invested in Youku Tudou, 300 million U.S. dollars were hand-in-handed in iQiyi, shares in Huace Film and Television, and 10 video sites were jointly created to create video alliances... These are the strengths of Xiaomi’s content-based dimension.

However, behind a series of investments and shares, it is very difficult to avoid a serious problem, that is, the exclusive content. Because video sites such as Youku Tudou and iQiyi can cooperate with Xiaomi, they can still license the content to other internet brands or traditional TV companies. For example, brand videos of Youku Potato and Hisense TV integrate the video content of Youku Potato. TCL also had in-depth cooperation with iqiyi.

Chen Xiao, vice president of Xiaomi, also acknowledged that he has been doing nearly two years, but many people actually do not know Xiaomi TV. Content is still the weak point of Xiaomi TV.

Some people in the industry once analyzed that investment is to spend money on resources. Although spending more money in the short term, in the long run, investment is more in line with Xiaomi's long-term strategy. However, investment relations are not controlled after all. Iqiyi and Youku Tudou also have to plan for the long-term development of their respective future. Therefore, in the cooperative relationship, Xiaomi is definitely better than those who have their own blood-making ability.

And Storm Technology is precisely a company that has a video content platform. According to public information, Stormstorm Technology is a well-known Internet video company in China. Through the "Storm Video" series of software (mainly including Storm Video PC, Storm Wireless App, and Storm Movie Video Browser), video users are provided free of charge. Multi-terminal integrated video service.

In addition to the content of Storm Video itself, Storm TV also chose the ecological content of the platform content. The author believes that the content ecological route of Storm TV is not much different from Xiaomi's video alliance. The key point is how the two parties divide accounts with the platform on content resources.

In fact, after Xiaomi created the video alliance, cooperation with other platforms was not smooth. Chen Hao once told the media that due to the collection of more than 10 video resources by Xiaomi TV, after the users ordered the paid video of a video website, the follow-up division method was quite complicated.

In response to this problem, Liu Yaoping said, “We have a clear splitting mechanism to ensure the smooth progress of membership fees and single-fare charges. At the same time, more ways to make content profitable will be announced at the press conference in October. ".

In addition, as one of the investors, Aofei Animation will also provide some service features for Storm TV, such as launching custom channels and providing animation rights.

hardware

The author believes that having hardware advantage should follow two concepts: one is to have excellent hardware and design concepts; the other is that the hardware itself can be profitable.
Last week, Liu Weizhi, president of Skyworth's color TV business division, was named "hardware name," saying: "Internet companies will not be willing to work hard on good hardware in pursuit of the number of users and the value of individual users, while good content and services will leave good hardware. It is a castle in the air."
So what is good hardware? The author believes that one is excellent display technology, the second is to add more design elements, such as: a narrow frame, ultra-thin body design, etc., the third is the use of excellent video / audio processing chip.
Since Internet TV is currently dominated by mid-to-low-end markets, there is little difference from display technology and design elements. Basically, 4K display technology, narrow bezel, ultra-thin body design, and dynamic backlight technology are all included. Don't repeat them too much.

However, Liu Yaoping has disclosed that Storm TV is based on the above details, but also in the design, the scene and other aspects of optimization. In addition, the cooperation between Storm TV and Dolby is also worth looking forward to.

In terms of whether or not the hardware is profitable, the choice between the two sides is the opposite.

Internet companies such as Xiaomi and Leshi recognized the "free hardware theory," which means that hardware is free or low-profit, and it mainly depends on content and service charges. Therefore, from the standpoint of Xiaomi TV's pricing system, this concept is basically followed.

The storm TV is selected by the traditional TV companies to promote the "hardware profit" model. According to Liu Weizhi of Skyworth, "80% of Apple's mobile phone's profits come from hardware, and 20% of its profits come from content and accessories. Therefore, the future model of hardware-based profitability will win."

In the end, I don't want to discuss the two models here. If Storm TV can still be profitable on the hardware while still focusing on the price/performance ratio, then I believe that no company is willing to “make a profit and lose money”.

Written in the final: As the predecessor of the Storm TV Haier commander TV, sales last year, there are 410,000 units, has far exceeded 300,000 units of millet TV. So, why did Storm TV have to tell Xiaomi TV? The main reason is that Xiaomi is too hot, too hot, and too hot... In fact, beyond Xiaomi is only the first step of Storm TV. In the face of more than 10 Internet TV brands, as well as the encirclement of traditional TV companies, The key is whether or not to highlight the encirclement.

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