Electronic audio industry has entered the stage of normal growth

On the whole, in the first half of 2011, China’s electronic audio industry ended its rapid growth in production and sales, with its year-on-year growth rate dropping to around 20% and entering the normal level. Factory orders are full and the overall stability is good.

Japan's earthquake has led to a reduction in production

In the first half of the year, China’s major audio products had an output value of nearly US$13.391 billion, accounting for 3% of the country’s electronic information manufacturing industry, an increase of nearly 20.4% year-on-year, and 5.9 percentage points higher than the national electronic information manufacturing output value growth rate. Among them, the output value of main audio equipment was nearly 8.117 billion U.S. dollars, an increase of nearly 30.2% year-on-year; the output value of key accessory products was 5.244 billion U.S. dollars, an increase of nearly 7.7% year-on-year. There are 380,000 employees, accounting for about 4% of all electronic information manufacturing employees.

As for the products, as DVDs are undergoing upgrading, the price of high-definition disc players has gradually dropped to 1,000 yuan, and the number of film sources has increased, and sales have steadily increased. The output of the laser disc player reached 67,411,300 units, with an output value of approximately US$2.979 billion, which still accounted for approximately 37% of the total output value of the industry; the output of automobile multimedia machines reached 2.79110 million units, an increase of 16.03% over the same period, and an average increase of 20% for three consecutive years, and As China has become a big country for car sales, the steady increase in domestic car ownership has led to a boom in production and sales of car multimedia machines, and the output value has accounted for about 23.7% of the total output value of the industry; single-speaker speakers, multi-speaker speakers, and other speakers have performed well. The output exceeded 2 billion, and the output value was nearly 3.5 billion U.S. dollars; professional audio output accounted for nearly 10% of the industry's total output value.

Affected by the Japanese earthquake on the upstream raw materials and components and components industries, the electronic audio industry in China suffered a greater impact in the second quarter of 2011. Although the Ministry of Industry and Information Technology and China Audio Industry Association issued a timely forecast, companies have adopted countermeasures such as stockpiling and risk avoidance and quickly seeking alternative components to cope with changes, but some OEM orders have decreased and production cuts have been inevitable. As Japanese companies resume production and increase production capacity, it is expected that the production and sales of China's electronic audio industry will gradually recover in the third quarter.

Domestic market expands further

The output of major electronic audio products, such as laser disc players, radios, component stereos, microphones and multimedia speakers, ranks first in the world. The development of the industry in recent years shows that the overall industry advantage of China's electronic audio is obvious. Although the manufacturing industries in Vietnam and India have rapid growth, due to the continuous stability of China's policies, complete infrastructure facilities, large number of skilled workers, and complete upstream and downstream supporting industries, the ability of the electronic audio industry to attract foreign investment is still relatively low. Strong, the industry's export-oriented competitiveness is still relatively large.

The domestic market has further expanded. After the traditional off-season in February, the earthquake in Japan in March followed. Affected by this, the monthly average growth rate in the second quarter was only 3.89%. At the same time, as China has increased the driving of residents' consumption and the hosting of many large-scale cultural and sports events such as the Universiade and the Red Song, the domestic audio industry, especially the professional audio market, has resumed production and sales gains in previous years, further expanding its share. .

Although the issue of recruitment difficulties for small and medium-sized enterprises of electronic sound in the eastern coastal areas has eased, it still exists partially, which has an adverse effect on the expansion of production capacity of enterprises. In the first half of the year, the electronic audio industry encountered difficulties in recruitment, and lack of competitiveness in wages was an important reason. China's electronic audio industry is dominated by small and medium-sized enterprises. Most industrial products have low technological content, low profit margins, and lack of competitiveness in wages and benefits. At present, the state has issued a series of supportive policies for SMEs, such as further reductions in tax relief, financing assistance, etc. to further increase support to promote enterprise restructuring, upgrading the product structure.

The marketing situation of China's electronic audio industry ended the recovery and rapid growth of nearly 30% last year, and the production and sales volume recovered to the level before the international financial crisis. After the international financial crisis, the international economic situation has improved, consumer spending has been a certain amount of outbreaks. Since the fourth quarter of 2009, rapid recovery has resumed. The current production and sales volume has recovered to the pre-crisis level. However, the foundation for economic recovery is not solid, and the pressure for industrial transformation and upgrading has increased. Enterprises should make comprehensive use of marketing, technology research and development, brand promotion and other means to respond positively.

Structural contradictions constrain development

The core basic products depend on imports. Most of the production capacity is at the low end of the industrial value chain, and most of the core basic products depend on imports. 80% of the enterprises are mainly processing and manufacturing machines. Core chips, high-end components, special equipment, key materials and components mainly rely on imports. In addition, the large earthquake caused a shortage of supply in the electronic materials and components market for a period of time. Companies that relied on Japanese raw materials and Japanese core components for assembly were affected by short-term negative impacts. The growth rate of production and sales fell in the first quarter of 2011.

Foreign companies account for a large proportion. The concentration of local companies is low, and there are no large enterprises with international competitiveness. The investment and output of foreign-funded enterprises account for over 70% of the entire industry. Small and medium-sized enterprises have scattered resources and do not have unique advantages. The industry’s ability to innovate is weak, and it is easy to form a situation of excessive competition that depends solely on price wars.

The problem of recruitment difficulties persists. Due to rising labor costs and pressure on environmental resources in the eastern region, the original development model has faced severe challenges. In most areas in the central and western regions, supporting capabilities need to be strengthened and resources, labor, and local markets are not fully utilized. The persistence of recruitment difficulties for SMEs in the eastern coastal areas of the industry has adversely affected the expansion of production capacity of enterprises.

Industry events

1. On January 7, 2011, Desai won the "Top 10 Leading Consumer Electronics Brand in China" award for five consecutive times.

2. On January 18, 2011, Huayang was identified as the first batch of strategic emerging industries in Guangdong Province.

3. On March 4, 2011, the “Twelfth Five-Year” development forum for the electronic audio industry was held in Shanghai.

4. On March 4, 2011, the 19th Shanghai International Hi-Fi Demonstration Conference and the 4th Home Projector Theme Exhibition was successfully held in Shanghai.

5. On March 14, 2011, Hualu and Meizhou signed an investment project.

6. Edifier products have won a number of foreign awards.

7.On May 14, 2011, Huadu District, Guangzhou City was honored with the honorary title of “China's Audio City”.

8. On May 18th, 2011, the world's first universal digital mixing console was launched in Shenzhen Baoyeheng Company.

9. The national standard "General Technical Conditions for Vehicle Audio and Video Systems" was released.