Since the Plan on Revitalizing Electronic Information Industry was implemented at the beginning of this year, domestic investment upsurge on liquid crystal screen has been being hotter and hotter after August. Project investment schemes have been issued successively. China's color TV enterprises are full of confidence in realizing "the second business creation" in panel era by means of product upgrade.

"The confidence is sourced from the huge domestic demand market." Lin Yuanfang, Vice Chairman of China Video Industry Association, believed that, to answer the influence of the international financial crisis, the central government's policies have made fruitful achievements on driving the domestic demand market of consumer electronic products. "China has taken the lead in realizing recovery."

Driven by domestic demand, the industry takes the lead in realizing recovery.

"The opportunities in China have led the recovery of global consumer electronic industry." said Gao Sumei, Deputy Director of Performance Inspection & Coordination Bureau, Ministry of Industry and Information Technology (MIIT). The international financial crisis has not influenced international consumer electronic purchasers' procurement strategy in China. In contrast, the huge opportunities in China have attracted more international purchasers. The information sourced from China International Consumer Electronics Show tells that the number of international purchasers this year represents an almost 5-fold increase than that of last year, which indicates that the huge opportunities in China driven by China's plan on revitalizing electronic industry have been recognized by the world.

What in deed has made China's enterprises own such an opportunity? Han Qing, Vice President of TCL, expressed, "China's huge market is the basis of consumer electronic industry." In China, there are over 360 million netizen and 670 million mobile phone users, and the color TV population has exceeded 500 million sets. Additionally, China is the largest market in the world in terms of color TVs, mobile phones, digital cameras, computers and so on.

The terminal market of China's consumer electronic products has a huge space. The steady growth of the orders on domestic demand has provided guarantee for the stable growth of the electronic industry. Along with the successive implementation of China's 4 trillion yuan stimulus package, 3G market initiation and policy package like "household electronic appliance going to the countryside", the consumer electronic industry began recover in the second quarter of 2009, and raise steadily with the improvement of the global economic condition in the third quarter.

As the market demand is released increasingly, the sales performance upsoars more. Many distributors, who have once decreased inventory, began to suffering the trouble of "being pressed for supplying goods every day". It is widely estimated that driven by the stable domestic demand and recovered foreign demand, domestic electronic industry will go on recovering, and the industrial prosperity degree is expected to surpass the expectation next year.

Product renewal and industrial upgrade are accelerated

Seeking for upgrade and fashionable enjoy of consumer electronic products is the main momentum to driving the development of consumer electronic industry, and technical progress is the guarantee to make consumer electronic products meeting such a consumption psychology. In the second half of this year, both the consumer electronic industry and the products have kept increasing under the promotion of such dual driving forces as technical renewal and consumption upgrade.

Consumer electronic terminal products fall into high-tech products, and multinational enterprises have innate advantage both on technologies and brands while most of domestic manufacturers are mainly engaged in low cost and outsource processing. The industrial policies supported vigorously by the central government will provide policy guarantee in the long-run development of the industry. "The competition in terminal electronic consumer product industry is fierce. Although domestic enterprises have not yet contained the overall competitive advantages, lots of leading enterprises in the industry have gained comparative advantage in the international competition, and in finished product enterprises, some have been provided with unique advantage. And some enterprises have made their products realize top upgrade via ceaseless technical innovation, which will have prospective future." said Gao Sumei.

Statistics of MIIT indicates that the novel consumer electronic products representing the product upgrade and fashionable consumption are growing in a more rapid speed. Those enterprises that focus on technical storage, progress and products' compliance with fashionable demand and the tide of the times, embrace more favorable development trend than that of the overall industry.

"Consumer electronic products are developing towards diversified application." Xie Qingjiang, General Manager of MediaTek Inc., believed that the future consumer electronic industry will develop towards two orientations, "One is the service industry combining such sections as health concept, remote medical treatment, secure biological identification, energy saving and robot application; the other is the secure technology application of digital home service platform integrating multiple technology systems."

Taking the liquid crystal TV as an example, currently the newly added high-generation liquid crystal panel production lines, which have been issued with constructing plans in China, have been 6. Industrial experts analyzed that after these production lines are finished, and adding to China's existing advantage on manufacturing complete TV sets, China will be undoubtedly promoted as the production base of global liquid crystal TVs. "At the beginning of this year, we were still worried about the possible impact of the international financial crisis on the panel industry, but who can imagine that the high-generation production lines were initiated in the second half of this year successively." Xiao Hua, Director of Electronic Information Department of MIIT expressed that MIIT was currently guiding the reasonable distribution of panel capacity, and promoting the rational prosperity in color TV industry.

***

Related Links:

Consumer electronics sector sharpens its competitive edge
Consumer electronic firms gear up for rural market
Appliance subsidy scheme taps China's rural market potential amid weakening export

Warning：The use of any news and articles published on eChinacities.com without written permission from eChinacities.com constitutes copyright infringement, and legal action can be taken.