LeEco plans to tar­get high-value added cus­tomers

China Daily (Hong Kong) - - BUSINESS | MARKETS - By FAN FEIFEI fan­feifei@chi­nadaily.com.cn

Chi­nese in­ter­net ma­jor LeEco said on Tues­day that its TV busi­ness will open con­tent and plat­form re­sources to more third-party part­ners, with an ex­pec­ta­tion that its rev­enue from non­hard­ware will reach over 20 bil­lion yuan ($2.9 bil­lion) in the next three years.

LeEco an­nounced the 2017 to 2019 strat­egy for its large­screen TV busi­ness, em­pha­siz­ing it will con­tinue to tar­get high-value users, stick to its “open eco” con­cept and use the US mar­ket as the base of global op­er­a­tions.

The com­pany said it aims to gain a big profit and have the largest num­ber of Chi­nese high-value users, aim­ing to be first in an­nual sales in the Chi­nese mar­ket and to have rev­enue from non­hard­ware sur­pass­ing 20 bil­lion yuan.

LeEco will co­op­er­ate with China In­ter­na­tional Broad­cast­ing Net­work (CIBN), the on­line TV ser­vice of China Ra­dio In­ter­na­tional and me­dia com­pany Wasu Me­dia Hold­ings Co Ltd, as well as open its con­tent por­tal and cloud op­er­a­tions and mar­ket­ing plat­forms to third­party con­tent providers.

“We hope to carry out in-depth co­op­er­a­tion with third party part­ners in our ver­ti­cal closed-loop ecosys­tem to cre­ate a con­sis­tent user ex­pe­ri­ence and higher com­mer­cial value,” said Liang Jun, pres­i­dent of LeTV Zhixin Elec­tronic Tech­nol­ogy (Tian­jin) Co Ltd, which is re­spon­si­ble for LeEco’s TV busi­ness.

Founded in 2004, LeEco started as a video-stream­ing site and achieved a rapid rise by sell­ing in­ter­net-en­abled de­vices that are bun­dled with video con­tent.

The com­pany also launched its 85-inch flag­ship

We hope to carry out in-depth co­op­er­a­tion with third party part­ners in our ver­ti­cal closed-loop ecosys­tem ...” Liang Jun, pres­i­dent of LeTV Zhixin Elec­tronic Tech­nol­ogy (Tian­jin) Co Ltd

TV uMax85 in China, priced at 39,999 yuan, and an up­graded 65-inch TV X65S, TV box and wire­less home au­dio prod­ucts.

Statis­tics from mar­ket re­search com­pany NielsenCCData show that 94 per­cent of LeEco’sTV users are 20 to 45 years old, 86 per­cent of its users come from two-mem­ber and larger fam­i­lies and 58 per­cent of the users’ salaries are over 10,000 yuan per month.

More­over, LeEco said 66 per­cent of its TV users come from first- and sec­ond-tier cities, with 39 per­cent con­cen­trated in the south­east costal area, which has higher com­mer­cial value.

In July, LeEco spent $2 bil­lion to ac­quire Vizio Inc, a ma­jor US tele­vi­sion man­u­fac­turer. This move is ex­pected to give LeEco about 20 mil­lion large-screen users.

Zhang Yan­bin, as­sis­tant di­rec­tor of All View Cloud, a Bei­jing-based con­sul­tancy spe­cial­iz­ing in home ap­pli­ances, said that af­ter re­view­ing its overly rapid growth, the com­pany has be­come more cen­tered on its key and ad­van­ta­geous ar­eas, such as the TV sec­tor.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.