Brand Competition and Consumer Preference of the Chinese LCD TV Market

Document Code: DPRPT15111201
Publication Date: November 2015
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BRAND COMPETITION AND
CONSUMER PREFERENCE OF THE
CHINESE LCD TV MARKET
by MIC
Abstract
Using big data analytics, this research covers all top LCD TV (Liquid Crystal
Display) brands sold on China's online stores Tmall and JD with following analysis
dimensions: brand ranking by the number of items available, ranking by LCD TV
sales, number of times online users mention about a particular LCD TV brand,
brand preferences, factors affecting purchase, as well as online shoppers'
comments and user analysis. All those dimensions help build a massive social
media database with an aim to more accurately reflect consumer needs in China.
Big Data Analytics

Brand Competition and Consumer Preference of the Chinese LCD TV Market November 2015
© 2015 Market Intelligence & Consulting Institute
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TABLE OF CONTENT
1. Executive summary 5
1.1 Product Sales 5
1.2 Brand Position 5
1.3 Brand Awareness 5
1.4 User Analysis 5
2. Research Objective 5
3. Product Sales Tracking 6
4. Brand Position Tracking 8
5. Brand Awareness 10
5.1 KKTV K43 Reviews 10
5.2 Xiaomi MiTV2 L40M2-AA Reviews 11
5.3 LeTV S40 Air L Reviews 13
5.4 Xiaomi MiTV2 4K 49-inch Reviews 14
5.5 LeTV S40 Air 4 Reviews 16
6. User Analysis 17
6.1 Xiaomi 18
6.2 LeTV 19
6.3 KKTV 20
6.4 Skyworth 21
6.5 LG 22
Conclusion 23
Brand Competition Analysis 23
Consumer Preference Analysis 24
Appendix 25
Glossary of Terms 25
List of Companies 26

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LIST OF FIGURES
Figure 1: Data Sources and Collection Methods 6
Figure 2: Brand Ranking by Number of Items Available on Tmall and JD 6
Figure 3: Sales Volume Ranking by LCD TV Model 6
Figure 4: Sales Volume Ranking by Chinese LCD TV Model 7
Figure 5: Sales Volume Ranking by Foreign LCD TV Model 7
Figure 6: Online Visibility Ranking by LCD TV Brand 8
Figure 7: Sentiment Ranking by LCD TV Brand 9
Figure 8: Factors Affecting Purchase of Top 5 LCD TV Models 10
Figure 9: Factors Affecting Purchase of KKTV K43 11
Figure 10: Factors Affecting Purchase of Xiaomi MiTV2 L40M2-AA 12
Figure 11: Factors Affecting Purchase of the LeTV S40 Air L 14
Figure 12: Factors Affecting Purchase of the Xiaomi MiTV2 4K 49-inch 15
Figure 13: Factors Affecting Purchase of LeTV S40 Air 4 17
Figure 14: Xiaomi LCD TV User Distribution by Gender & Age 18
Figure 15: Xiaomi LCD TV User Distribution by Region 18
Figure 16: LeTV LCD TV User Distribution by Gender & Age 19
Figure 17: LeTV LCD TV User Distribution by Region 19
Figure 18: KKTV LCD TV User Distribution by Gender & Age 20
Figure 19: KKTV LCD TV User Distribution by Region 20
Figure 20: Skyworth LCD TV User Distribution by Gender & Age 21
Figure 21: Skyworth LCD TV User Distribution by Region 21

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Figure 20: LG LCD TV User Distribution by Gender & Age 22
Figure 21: LG LCD TV User Distribution by Region 22

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LIST OF TABLES
Table 1: Brand Competition Analysis 23

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1. EXECUTIVE SUMMARY
1.1 Product Sales
In terms of the number of LCD TVs available on Tmall and JD during 15 May 2015
to 15 August 2015, the top 5 brands were TCL, Changhong, Hisense, Sharp,
Konka.
On Tmall, the top 5 LCD TVs in terms of overall sales were KKTV K43, Xiaomi
MiTV 2 L40M2-AA, LeTV S40 Air L, Xiaomi MiTV 2 4K 49-inch, and LeTV S50 Air.
1.2 Brand Position
When it comes to user's perception towards LCD TV brands, Xiaomi and LeTV
were grouped in the category of mainstay brands with high reviews while LG,
Hisense and Skyworth in the category of niche brands with high reviews.
1.3 Brand Awareness
When it comes to LCD TVs, Chinese Internet users tended to focus on enhanced
definition and C/P (Cost-Performance) ratio. For the bestseller KKTV K43, online
users cared more about C/P ratio.
1.4 User Analysis
The majority of LCD TV shoppers in China were men aged between 25 and 34.
Most of them live in Guangdong, Zhejiang and Jiangsu.
2. RESEARCH OBJECTIVE
Consumer preferences are analyzed using big data analytics in lieu of conventional
consumer analytics. The major problem with conventional approaches is that the
data sources are relatively limited as consumers' feedbacks are acquired indirectly
via market surveys (phone or online surveys). Using big data analytics, keyword
searches can be conducted on social media and e-commerce platforms, from
which a huge volume of data can be collected on a regular basis to provide
valuable information about consumers.

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Figure 1: Data Sources and Collection Methods
Note 1: This report summarizes data collected from Sina Weibo, Tmall, and JD; citation data must
be used with care.
Note 2: Sina Weibo is the most influential social network platform in China, with over 200 million
monthly active users in the past few months.
Note 3: Tmall and JD are the top two B2C platforms in China, with combined market share of over
80%.
Source: MIC, November 2015
3. PRODUCT SALES TRACKING
Figure 2: Brand Ranking by Number of Items Available on Tmall and JD
1,988
1,723
1,035
772
677
397
246 231 226 217 170
35 20 8 1
-
500
1,000
1,500
2,000
2,500
Unit
Source: Tmall and JD, compiled by MIC, November 2015
Figure 3: Sales Volume Ranking by LCD TV Model

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9,007
6,096
4,885 4,526 4,163
2,872 2,667 2,286 2,170 2,043
-
2,000
4,000
6,000
8,000
10,000
Unit
Source: Tmall, compiled by MIC, November 2015
Figure 4: Sales Volume Ranking by Chinese LCD TV Model
9,007
6,096
4,885 4,526 4,163
2,872 2,667 2,286 2,170 2,043
-
2,000
4,000
6,000
8,000
10,000
Unit
Figure 5: Sales Volume Ranking by Foreign LCD TV Model

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1,023
956 925
853
701
566 520
407 390 383
-
300
600
900
1,200 Unit
Note: Source: Tmall, compiled by MIC, November 2015
4. BRAND POSITION TRACKING
Figure 6: Online Visibility Ranking by LCD TV Brand
品牌網路提及量排行
4,441,0154,366,858
1,350,697
635,686
543,822 529,279 527,830 497,425
390,170 390,170 343,473
185,582 130,735 93,091 41,906
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000 Posts
Note 1: Online visibility ranking refers to the number of times online users mention a specific LCD
TV brand on the social media platform

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Note 2: Xiaomi, LeTV, Coocaa, 17TV, and KKTV are online TV brands and thus those brands have
paid more attention on sustaining high levels of product performance and indicators. Therefore,
those online TV brands have been more frequently mentioned than traditional TV brands
Note 3: In terms of the number of times mentioning online, marketing content might account for
certain proportions: Xiaomi 35%, LeTV 30%, Skyworth 25%, Coocaa 20% and 7TV 30%
Source: Sina Weibo, compiled by MIC, November 2015
Figure 7: Sentiment Ranking by LCD TV Brand
0.0
0.5
1.0
- 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000
Mainstay Products with
Average Reviews
Mainstay Products
with High Reviews
Niche Products with
High Reviews
Niche Products with
Average Reviews
NetSentimentRate
Number of
Times
Mentioned
Online
Note: This mapping provides cross-analysis between the number of times mentioned online and
net sentiment rate of a brand; number of times mentioned online refer to the number of times
Internet users mentioned a specific brand; Net Sentiment Rate (NSR) = (Positive Posts – Negative
Posts)/ (Positive Posts + Negative Posts)
Source: Sina Weibo, compiled by MIC, November 2015

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5. BRAND AWARENESS
Figure 8: Factors Affecting Purchase of Top 5 LCD TV Models
0.5
1.0
KKTV K43 43-inch
Xiaomi MiTV 2
L40M2-AA
LeTV S40 Air L
Xiaomi MiTV2 4K
49-inch
LeTV S50 Air 4
Number of Times
Mentioned Online:
12,788
NetSentimentRate
Audio
Quality
Color
Appearance
Internet
Connection
C/R Ratio Clarity
Screen
Note: This mapping provides cross-analysis between the number of times mentioned online and
net sentiment rate of a brand; number of times mentioned online refer to the number of times
Internet users mentioned a specific brand; Net Sentiment Rate (NSR) = (Positive Posts – Negative
Posts)/ (Positive Posts + Negative Posts)
Source: Tmall and JD, compiled by MIC, November 2015
5.1 KKTV K43 Reviews
Review 1: I am satisfied with its quality, high C/P ratio. System runs fast and
impresses me.
Review 2: This has pretty good image clarity and fine resolution.
Review 3: It works as good as described. Vivid colors and provides a wide range of
features.
Review 4: Screen is huge enough for me with great clarity and audio playback
quality.
Review 5: This smart TV comes with all necessary specs and runs fast. Vivid and
natural color with sharp contrast
Review 6: This comes with excellent form factor design and I am quite satisfied.

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Review 7: The most extraordinary feature is its user interface design that provides
much better system performance. The built-in processor, though not top-notch, still
manages to offer fast responsive speeds without noticeable lays.
Figure 9: Factors Affecting Purchase of KKTV K43
5.74%
5.77%
9.04%
9.19%
10.00%
10.29%
18.05%
25.11%
0% 10% 20% 30%
System
Appearance
Screen
Resolution
Sound Effects
Features
Enhanced
Definition
C/P Ratio
KKTV K43
5.2 Xiaomi MiTV2 L40M2-AA Reviews
Review 1: This got pretty good C/P ratio after taking appearance, features, quality
and price into considerations.
Review 2: It gives clear pictures and friendly user interface design. Overall quality
is quite satisfying.
Review 3: Buying such TV with high clarity is the first for me and its price is insane.

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Review 4: In my opinion, this big screen TV deliver clear images clear image and
the system runs pretty fast.
Review 5: This smart TV has good quality and all my family members love it.
Review 6: I like this TV. Although there are critics about its sound effect
performance but it is not bothering me. It got excellent C/P ratio and screen
performance.
Review 7: I just tried it and it is very easy to use. Thanks to fast internet connection
speed, I can easily access internet content.
Figure 10: Factors Affecting Purchase of Xiaomi MiTV2 L40M2-AA
6.55%
8.30%
9.17%
12.05%
16.77%
19.48%
27.69%
0% 5% 10% 15% 20% 25% 30%
Easy to Use
Screen
Functionality
Operational
Speeds
Resolution
Enhanced
Definition
C/P Ratio
Xiaomi MiTV2 L40M2-AA

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5.3 LeTV S40 Air L Reviews
Review 1: This model is so powerful with robust features, vivid image and color,
and awesome sound effect. What a bargain!
Review 2: In my opinion, its appearance, features, screen image and price are
superior to Xiaomi's MiTV.
Review 3: What impressed me are its features, stylish appearance, and clear
image display. This is a really pleasant shopping experience.
Review 4: This provides outstanding screen performance with clear images and
sharp contrast. It comes with a warmer color that is good for eyes. Samsung's
display does a good job.
Review 5: Overall speaking, I am quite satisfied with this TV. The only thing that
annoys me is the repetitive commercials every time when TV is on. It will be better
if more humanity factors can be added to it.
Review 6: Good product quality and fast boot speeds. When watching online
content, it is easy to operate.
Review 7: Originally I aimed for Xiaomi's MiTV but bought LeTV instead because
of its rich content sources. And I think I've made a right decision.

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Figure 11: Factors Affecting Purchase of the LeTV S40 Air L
3.57%
5.66%
7.01%
8.00%
9.47%
26.32%
39.98%
0% 10% 20% 30% 40% 50%
Online Content
Sources
Operational
Readiness
Start-up Ads
Screen
Functionality
C/P Ratio
Enhanced
Definition
LeTV S40 Air 4
5.4 Xiaomi MiTV2 4K 49-inch Reviews
Review 1: I have been watching TV programs on this gadget for a while and its
sound effects are incredible, especially with really good base sound effects.
Review 2: This is a good product with high definition and good sound effects. This
is one of the best choices if you are looking for a smart TV.

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Review 3: The overall quality of this TV is not bad but it can be better if some
improvement is done to the noticeable gap between display screen and TV frame.
Review 4: MiTV is an excellent product with robust features, appealing appearance,
sophisticated design and clear images.
Review 5: This got good C/P ratio and features high definition images. I am totally
satisfied with base sound effects.
Review 6: What impressed me are its features, stylish appearance, and clear
image display. This is a really pleasant shopping experience for me.
Review 7: This is a great TV with high definition. However, there is not enough 4K
content sources and is unable to demonstrate all of its advantages.
Figure 12: Factors Affecting Purchase of the Xiaomi MiTV2 4K 49-inch
6.98%
10.42%
11.71%
13.87%
14.38%
18.43%
24.20%
0% 10% 20% 30%
Online Content
Sources
Appearance
C/P Ratio
Functionality
Screen
Enhanced
Definition
Sound Effects
Xiaomi MiTV2 4K 49-inch

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5.5 LeTV S40 Air 4 Reviews
Review 1: LeTV performs nicely with good display definition. Although this is not a
4K TV but I am happy with 1080p.
Review 2: It is very easy to play content that comes with high definition. And its C/P
ratio is incredible.
Review 3: This TV has very good picture definition and is easy to operate and use.
Great sound effects.
Review 4: Awesome price and unbelievable features. This is my second LeTV.
Online content has clear and true-to-life images. It is very agile and easy to
operate.
Review 5: Great C/P ratio and impressive appearance. I bought it at a sale
promotion and it is perfect to me!
Review 6: A great stuff with an ultra-large display to show images clearly. My mom
really likes it too and it is enjoyable to watch TV programs with this screen size.

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Figure 13: Factors Affecting Purchase of LeTV S40 Air 4
8.09%
9.38%
16.73%
17.46%
18.01%
30.33%
0% 10% 20% 30% 40%
Screen
Appearance
Functionality
Sound Effects
C/P Ratio
Enhanced
Definition
LeTV S40 Air 4
6. USER ANALYSIS

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6.1 Xiaomi
Figure 14: Xiaomi LCD TV User Distribution by Gender & Age
79% 21%
Distribution by
Gender
13.6%
36.1%
24.3%
11.6% 9.7%
3.4%
0%
10%
20%
30%
40%
18-24 25-29 30-34 35-39 40-49 50-59
Distribution by Age
Figure 15: Xiaomi LCD TV User Distribution by Region
3.2%
3.6%
3.6%
4.4%
4.4%
5.8%
6.6%
8.5%
10.5%
12.7%
0% 10% 20%
Hebei
Sichuan
Shanghai
Beijing
Fujian
Henan
Shandong
Jiangsu
Zhejiang
Guangdong
Distribution by Region

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6.2 LeTV
Figure 16: LeTV LCD TV User Distribution by Gender & Age
74% 26%
Distribution by
Gender
13.4%
33.6%
22.4%
11.5% 10.9%
3.6%
0%
10%
20%
30%
40%
18-24 25-29 30-34 35-39 40-49 50-59
Distribution by Age
Figure 17: LeTV LCD TV User Distribution by Region
3.2%
3.6%
3.6%
4.4%
4.4%
5.8%
6.6%
8.5%
10.5%
12.7%
0% 10% 20%
Hebei
Sichuan
Shanghai
Beijing
Fujian
Henan
Shandong
Jiangsu
Zhejiang
Guangdong

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6.3 KKTV
Figure 18: KKTV LCD TV User Distribution by Gender & Age
79% 21%
Distribution by
Gender
8.8%
22.1% 22.7%
18.1% 17.8%
7.8%
0%
10%
20%
30%
18-24 25-29 30-34 35-39 40-49 50-59
Distribution by Age
Figure 19: KKTV LCD TV User Distribution by Region
3.8%
4.3%
4.4%
5.0%
5.2%
6.7%
7.6%
8.6%
9.1%
17.3%
0% 10% 20%
Fujian
Hebei
Hunan
Anhui
Henan
Jiangsu
Zhejiang
Shandong
Guangxi
Guangdong

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6.4 Skyworth
Figure 20: Skyworth LCD TV User Distribution by Gender & Age
65% 35%
Distribution by
Gender
12.2%
29.4%
21.5%
13.0%
15.1%
5.5%
0%
10%
20%
30%
40%
18-24 25-29 30-34 35-39 40-49 50-59
Distribution by Age
Figure 21: Skyworth LCD TV User Distribution by Region
3.7%
3.8%
4.0%
5.2%
5.4%
5.5%
5.8%
7.3%
7.9%
16.7%
0% 10% 20%
Guangxi
Sichuan
Hubei
Anhui
Henan
Hunan
Jiangsu
Zhejiang
Shangong
Guangdong

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6.5 LG
Figure 22: LG LCD TV User Distribution by Gender & Age
74% 26%
Distribution by
Gender
12.9%
31.4%
22.0%
13.1% 13.7%
4.8%
0%
10%
20%
30%
40%
18-24 25-29 30-34 35-39 40-49 50-59
Distribution by Age
Figure 23: LG LCD TV User Distribution by Region
3.5%
3.6%
3.7%
4.1%
4.1%
4.4%
6.8%
7.1%
7.2%
16.9%
0% 10% 20%
Anhui
Sichuan
Guangxi
Shandong
Shanhai
Heilongjiang
Jiangsu
Zhejiang
Liaoning
Guangdong

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CONCLUSION
Brand Competition Analysis
Based on the number of LCD TVs on online stores Tmall and JD during 15 May
2015 and 15 August 2015, the top-10 LCD TV brands were: TCL, Changhong,
Hisense, Sharp, Samsung, LG, LeTV, Sony, Skyworth and Haier. At the seventh
place, LeTV was the only internet TV brands that made it to the top-10 over the
research period. Other internet TV brands such as Xiaomi and CooCaa dropped
out of the rankings.
The data showed that the top-5 models in terms of sales volume were all from
Chinese brands. KKTV K43 had highest sales volume, followed by Xiaomi MiTV2
40-inch, LeTV S40 Air L, Xiaomi MiTV2 49-inch and LeTV S50 Air.
The analysis of brand preference revealed that, for Internet users in China,
Chinese internet TV brands LeTV and Xiaomi fell into the category of "mainstay
products with high reviews" while the foreign brand LG and Chinese traditional
brands Hisense and Skyworth belonged to the category of "niche products with
high reviews." It is noteworthy that Xiaomi and LeTV were highly mentioned online
but their brand sentiment rates were lower than traditional TV brands LG, Hisense
and Skyworth. This indicated that although those internet TV brands seemed to
have higher brand awareness, more time and efforts are required for them to gain a
higher degree of trust from internet users.
Table 1: Brand Competition Analysis
Brand
Position
Brand
Actual Sales Performance on
Tmall and JD
Candidate
Buyers
User Analysis
Mainstay
Products
with High
Reviews
Xiaomi,
LeTV
Sales of Xiaomi MiTVs and
LeTVs were both outstanding
with MiTV 2 and LeTV S40 Air
and S50 Air making into the top
5 best-selling models; ThinkPad
X250 was its best-seller.
Mainly male
consumers,
aged
between
25-29
Internet users had
positive reviews
about MiTVs in
terms of C/P ratio,
sound effects, and
appearance; aside
from high C/P
ratios, internet
users favored
LeTVs because of
the huge content
sources that it
offers.

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Brand
Position
Brand
Actual Sales Performance on
Tmall and JD
Candidate
Buyers
User Analysis
Niche
Products
with High
Reviews
LG,
Hisense,
Skyworth
LG and Hisense had higher
brand sentiment rates than
Skyworth but Skyworth TVs sold
better.
Mainly male
consumers,
aged
between
25-24
Internet users
focused more on
high C/P ratio of
ASUS LCD TVs.
Niche
Products
with
Average
Reviews
Konka
Konka was yet to be included
into top 10 best-selling brands
Mainly male
consumers,
aged
between
25-29
Traditional TV
brand Konka
recently received
numerous criticisms
about its product
quality.
Source: MIC, November 2015
Consumer Preference Analysis
During 15 May 2015 and 15 August 2015, most domestic and foreign LCD TV
shoppers in China were men and were aged between 25 and 34. Up to 75% of
those who purchased MiTVs or LeTVs were men, reflecting that men tend to favor
internet TVs.
Top-5 best-selling LCD TV models in China over the research period were KKTV
K43, Xiaomi MiTV2 40-inch, LeTV S40 Air, Xiaomi MiTV2 49-inch, and LeTV S50
Air. They are all Internet TVs. Despite having fewer models, Internet TVs tend to
have higher sales volumes on online stores compared to traditional TVs, given
more appealing pricing and higher-end specs.
When buying a LCD TV, Chinese consumers cared more about enhanced
definition and C/P ratio. This indicated that although Internet TVs, with higher C/P
ratios, tend to sell better, consumers still weighed more on enhanced definition and
sound effects. TV brands who have been long dedicated to enhanced picture color,
definition and sound effects have won the acknowledgement from internet users.
Abundant content sources are one of the reasons that internet users prefer LeTVs
and MiTVs over traditional TVs. Therefore, TV content richness seems to be one of
essential factors for brands to attract more internet users.

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APPENDIX
Glossary of Terms
C/P Ratio Cost/Performance Ratio
LCD TV Liquid Crystal Display Television
NSR Net Sentiment Rate

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List of Companies
17TV
Changhong
Coocaa
Haier
Hisense
JD
KKTV
Konka
LeTV
LG
Philips
Samsung
Sharp
Skyworth
Sony
TCL
Tmall
Xiaomi

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Web Address http://mic.iii.org.tw/english
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