The China 618 mid-year promotion kicked off early on May 20.
According to preliminary data, the first week of 618 TV sales showed strong performance, with online retail volume significantly exceeding the same period in 2023. Total channel sales also showed a positive trend, boosting manufacturers' confidence, although final sales results are still pending.
According to monitoring data from AVC (All View Cloud Data Technology), during the first week of the 618 promotion (May 20-26), the sales volume of TVs in the online market reached 279,400 units, a year-on-year increase of 63.7%. The sales revenue amounted to RMB 1.049 billion, a substantial growth of 188.0% compared to the same period in 2023, showing volume and value growth.
This wave of China's 618 promotion saw significant price reductions for large-sized TVs, making them the mainstream choice in the market. According to AVC data, the market share of TVs 75 inches and above continued to grow, including 75-inch and 85-inch large-sized TVs, which were favored by Chinese consumers.
As for TVs 98 inches and above, prices dropped significantly during the 618 promotion. For instance, the average price of 98-inch TVs fell from RMB 17,009 in the previous week to RMB 16,392. For 100-inch TVs, prices dropped from RMB 11,711 to RMB 10,514.
In addition, high-end products, with better picture quality, sound quality, and smart interactive features, were well-received by many consumers. The penetration rates of Mini LED TVs and OLED TVs reached 20.2% and 0.3%, respectively. For high refresh rate products, the share of 144 Hz models reached 32.7%.
Notably, China's "trade-in" policy injected growth momentum into the home appliance industry in April and May. During the 618 promotion, the "trade-in" policy remained one of the key promotional methods implemented by various channels, along with various discounts and limited-time price reductions, sparking a market boom.
For example, JD.com launched a "one-stop service" for buying new TVs, which includes delivery, installation, old machine removal, and recycling. This service allows direct deduction of the old machine's value at checkout and offers exclusive trade-in discounts, providing a more convenient replacement experience for users.
Tmall, on the other hand, created the slogan "Easy-peasy 618," which focuses on direct price discounts. Besides promoting volume through lower prices on highlighted products and models, significant subsidies and Taobao live streaming were also focal points for low-price promotions.
Furthermore, platforms like Suning, Douyin, and Kuaishou also actively participated in the 618 promotion with trade-in programs, live-streaming sales, and various discounts.
Although the first week of the 618 promotion reported a significant boost in TV sales, bringing much excitement, industry insiders believe that the final sales results will not be known until the event concludes.
Reflecting on the panel side, most panel stock preparations for the 618 promotion had already been completed by April. According to CINNO Research, LCD TV panel shipments in May declined compared to April. As for supply, major panel manufacturers did not significantly adjust availability rates in May, maintaining levels similar to those in April.
It is estimated that the global average utilization rate for 8.5G and 8.6G LCD production lines in May exceeded 86%, while for 10.5G LCD production lines, the average availability rate was over 92%. In other words, since March, panel manufacturers have maintained high availability rates for three consecutive months.
However, in response to the expected decrease in demand following concentrated stock preparation during the peak season, panel manufacturers are also ready to cut production. Starting in June, major panel manufacturers are expected to begin reducing availability rates, returning to a "production-on-demand" approach, and preventing significant fluctuations in LCD TV panel prices.
Article translated by Heidi Yin-Hsuan Tai
