There was a time when nearly every hotel room seemed to have a TV with a Sony, Panasonic, Samsung or LG logo on the bottom of the screen. Affordable Chinese models have long been chipping away at the dominance of such Japanese and South Korean brands. Now, however, China’s ascent is about more than just price.
Take what’s happening in Japan. Local brands are increasingly being displaced by Chinese manufacturers on their home turf. Chinese makers accounted for more than half of all flat-screen TVs sold in Japan last year for the first time on record, according to research firm BCN.
In the past, Chinese companies have disrupted industries primarily through cheapness. That meant even as they gained market share, a clear distinction remained between premium and budget segments. The high-end market, which typically has fatter margins, still provided a lucrative buffer for incumbent players to sustain their business as Chinese makers focused on affordability. That may now be changing.