The video MP3 market suffered falling sales volume and value
According to the report released by CCID Consulting, in the 3rd quarter of 2007, the gross sales volume of video MP3 players in China was 1.6148million, down by 12.06% as compared with the same period of the previous year. Sales value reached RMB 791 million Yuan, down by 9.08% as compared with the same period of the previous year. The gross sales of flat panel TV sets in China in the first three quarters of 2007 reached 5.0061 million and the sales value was 2.39 billion Yuan.
As to the sales performance in each month of the third quarter, sales reached a peak in July with sales volume reaching 583,400. August came in second with a sales volume reaching 527,000, 56,400 less than July's total volume. The sales volume dropped to 504,300 in September, the least sales for the third quarter. Manufacturers strengthened sales promotion in July and August (the summer vocation) and the sales volume was visibly higher. But the relative link ratio of July and August incurred negative growth, showing that the summer vacation sales promotion is playing a less important role for the MP3 market. In September, manufacturers prepared for the "Golden Week" (the National Day Holiday), but failed to pay due attention to the sales promotion, thus the sales volume dropped to the floor.
Market concentration dissipated to some degree with domestic brands dominating the market
As to China's video MP3 market performance in the 3rd quarter of 2007, the Top 5 brands got 37.82% of the market, down by 6.08% over the previous quarter and the Top 5 brands (by the sales volume) were all domestic brands, namely NEWMAN, MEIZU, DEC ZHONGHENG, Changhong Zarva and Unibit. NEWMAN, MEIZU and Changhong Zarva all have unique styles, while AIGO, which established its position in China's MP3 market the earliest, seems to lack the ability to realize its ambition in the face of an intensified market.
Despite its leading sales volume of video MP3s, NEWMAN saw a falling sales volume in the third quarter as compared with the second quarter. It was caused by the falling product quality and profitability. Further improvement is expected in order to win the future market.
The success of MEIZU comes from the successful generalization of its classic model Mini Player and the Music Card released in March 2007. In addition, MEIZU forum has more registered users with a solid foundation of interaction between users and product developers, which can lead to popularity and bigger sales volume.
Through a series of marketing activities, Changhong Zarva has deepened its recreation route and had an improved market performance in China's video MP3 market in the 3rd quarter of 2007.
2.4" screens comprised more than 30% of all products as more screen sizes were released
As to the screen size of video MP3 players in China in the 3rd quarter of 2007, the sales share of 2.4" products reached 32.1%. The 2.0" products took a share of 19.4%. The total share of both topped 50%. It is seen that the 2.4" and 2.0" products are the mainstream products in China's video MP3 market now.
In the future, due to the entrance of more new manufacturers and consumer demand for larger screens and lowered screen cost, more products with screens bigger than 2.0" will be released.
