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China DVD Market Report, 2006 (Chinese Version)
Research In China, Nov 2006, Pages: 75
In 2005, 18.744 million DVD players were sold in China with sales revenue reaching RMB11.528 billion. The market retained a rapid growth while sales revenue grew slowly due to the intense competition. Sales volume rose by 2.242 million units, or a 13.6% increase compared to 2004; sales revenue increased by RMB 0.501 billion over 2004, or a 4.5% year-on-year growth. The compound growth rate of sales volume reached 45.3% from 2001 to 2005 and that of the sales revenue 14.9%.
Scale and Increase of Sales Volume in China DVD Player Market, 2001-2005
The consumer behaviour and consumption characteristic are different according to regions. For instance, the consumers in North China pay much more attention to the brand, quality as well as services; the consumers in East China are not so sensitive to the price, but care more about the brand favourite and have a high demand for the functions; However, the consumers in southwest and northwest regions are more practical and show obvious attention to the price fluctuation.
Chinas DVD market will grow steadily in the next few years, but the revolution of product structure and the change of competition pattern lurk behind the surface of the steady market growth. Since HD-DVD player launched in the market and underwent successive sharp drops of prices, the market shares of such products increased rapidly, and the sale price of ordinary DVD players was further lowered. As consumer income is getting increase and consumer demand tend to be diversify, portable DVD and DVD-ROM products will increase significantly in the next few years. The compound annual growth rates (CAGR) of Chinas portable DVD and DVD-ROM will reach 49.7% in the next five years.
Report highlights
1. Chinas DVD market enters a new round of replacement period, and product reconstruction and technological innovation become the main issues for market development;
2. Powerful vendors with great brands lead the market and many small vendors gradually quite the market;
3. High patent fees restrict Chinas product exportation and new technical standards decide the market future;
4. Products are mainly concentrated in the first and second class markets, but the third class market, where there is less penetration, needs to be further developed.
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