To take advantage of China's potentially massive market for digital television sets, which has been bolstered by the nation's burgeoning digital television industry, Taiwanese companies should aggressively promote their wares with an eye on future business expansion, industry insiders said at a seminar on digital television industry in Taipei yesterday.
"China is determined to develop its digital television industry by 2008, when Beijing is scheduled to host the Olympic Games," said Allen Cheng (
Taiwanese digital television makers should seize the opportunity to take advantage of the market, either under their own brand or by means of contract manufacturing to pave the way for future business expansion, Cheng said.
China started trial broadcasts of digital television programs in 2002 in several first-tier cities like Shanghai and Beijing. The number of digital TV subscribers stood at 168,000 families last year, an increase of 101,000 families compared with 2002, according to figures provided by the center.
The figure is expected to jump to 1.22 million households this year and rise to 30 million families by the time the Olympic Games are held, according to the center's projections.
Increased availability of digital TV content should push forward China's market demands for digital television sets, including rear projection TV, liquid-crystal display (LCD) TV and plasma-display panel (PDP) TV, which are well suited to the high quality of digital broadcasts, Cheng said.
Market demand for digital television sets are expected to reach 6.49 million units this year, which is worth 31.44 billion yuan (US$3.8 million), up from 3.17 million units and 16.18 billion yuan last year, according to the center.
These figures could hit 19.8 million units and 77.42 billion yuan in 2008, according to the center.
Taiwanese digital TV makers have an edge over international competitors, since local producers have the advantage of controlling key components like LCD panel factories, strong information technology capabilities and an original-equipment-manufacturing (OEM) model, as well as sharing a similar cultural background with China, said Peter Chen (
Earlier this month Teco Electric and Machinery Co (東元電機) announced that it was in discussions with Konka Group Co Ltd (康佳) to supply flat-panel televisions to China's third-largest consumer electronics vendor.
Their collaboration prompted an alliance between TCL Corp, Konka's larger Chinese rival, and Sampo Corp (
However, Taiwanese companies may find it difficult to sell digital TVs bearing their own names, due to weaker branding than their international rivals, as well as a lack of after-sales service outlets and management experience of local sales channels, Chen said.
To promote own-brand business, local companies will have to establish manufacturing bases in China to obtain domestic selling licenses and bypass the tariff burden, Chen said.
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