While Japanese consumers are typically considered willing to pay more for products bearing trusted brand names, perhaps less known LCD TV vendors may still end up having an affect on pricing in the Japan market.
In general, the most successful LCD TV brands are those that have the backing of their own LCD panel production lines, so brands such as Sharp, Samsung, Sony, Philips and LG Electronics are global leaders. In Japan, trusted brands, such as Toshiba, can also leverage the quality of its chip designs and brand recognition to maintain market share, with Toshiba claiming 20% of the local LCD TV market.
However, having the backing of vertical integration is not the only way to succeed in the global LCD TV market. Taiwan-based Amtran Technology, a Top-3 branded LCD TV vendor in North America, is a good example of a company that is succeeding despite having no panel making capabilities or IP advantage. The company's Vizio-branded TVs are held in great affection because the company is managing its own designs and delivering quality products to the market at a reasonable price.
Due to there being little difference among LCD TV products concerning panel specifications, driver chips, and quality circuit assembly, those companies that can deliver reasonable pricing can compete against the top brands that have their own panel making facilities, although such successful has mostly been in the North America market.
Can the success of the smaller brands also be found in Japan? There, lesser known brands may not be able to win over the majority of consumers, but they may succeed in grabbing the attention of the branded players, who may have to lower their prices to better compete with the cost-cutting players.
And while it is true that flat panel TVs are moving to larger sizes, and TV makers that possess control of their own 8G plants for larger-size panel production will remain the dominant players in the largest-sized segments, but there is still room for smaller players to influence the market in Japan. That is because sales there are currently being driven by surging demand for second TVs, which are in general much smaller than TVs purchased for use in the living room. And although consumers may choose to go with a top brand when making their choice for this type of TV, the pricing of that product may end up being affected by the pricing offered by smaller brands.
