Monday, June 13, 2011

E-book into a price spiral: low-priced market, the door can be opened to

Reporter Ren Xiaoning

"Our upcoming products, black and white E Ink screen reader to sell 498 yuan, 299 yuan color products to sell." Industry Forum in an e-book, the Patriot Lei Jun, vice president of the words amazing.

Lei Jun voice hardly ever, Hanwang Patriot's remarks will be some move into reality. May 13, Kingship National Dealer Conference held in Beijing, announced that its products, slashing prices. Among them, the sales of larger N510 Hanwang price to 599 yuan for sale, 990 yuan higher than the sales price before the price cut of 40%. Other types of electrical products, paper books have a more substantial price cuts, high-end product prices fell as much as thousand dollars.

Price of $ 114 and foreign, $ 139, $ 189 for Kindle and other electronic reader products, domestic electronic reader tens of thousand dollars, has been in high price segment. This is the e-reader has been in the gift market, not really one of the reasons to enter the mass market.

HW prices have gone down, according to this reporter learned that the domestic brands other electronic readers will take a substantial price cuts in order to adapt to the market adjustment.

Electronic reader seemingly overnight into parity era. And enter the era of cheap electronic reader, is really eager to open the hardware manufacturers mass market, still need the test of time.

The cost of high prices

Chairman Liu Yingjian Hanwang Technology conference in New said electronic reader 599 million, in fact, is Kuibenmaimai.

Close Hanwang technology industry on Yingjian statement agreed. The sources, HW The use of PVI 5 in. black and white electronic ink-screen e-reader, mostly produced in 2010, when the high hardware costs, combined with the Treasury in the first half to save costs, "is certainly sell 500 odd lost money. "

Electronic reader occupy the major costs in hardware costs, which E Ink display is a top priority. According to report, the second half of 2010, large-scale procurement PVI electronic ink screen, the single-screen prices close to $ 45. Domestic electronic reader products, even the most expensive cottage electronic reader, the cost is close to 500.

But even at a loss, electronic reader had to cut prices. IPad and other Tablet PC as the impact of e-readers hit the gift market has been hit hard. And the once red-hot market, compared to the electronic reader, electronic reader first half of 2011 showed a tepid picture. According to Qing dynasties Research Center data show that first quarter of 2011 sales volume of China's e-reader market is 282,500, the fourth quarter of 2010 compared to 305,100, a drop of 7.41%.

"E-readers before the main channel through the sale of gift or purchase, but this channel is transient, and has been shrinking." Analysys International analyst at Sun Peilin that, between the impact of the gift market, the general user awareness for e-books still stuck in the "expensive", "can not afford," "partial gifts," the concept, this will lead to reduced consumer purchases. Once the price cuts, it will help promote the further development of electronic reader.

Other hardware vendors have also played the card price, significantly lowered the prices of electronic reader products. Vice President Liu Chaogui Newman spoke of an interview, is preparing to have the handwriting of the electronic reader E6308 price down to 999 yuan, the launch of this product in Newman's 4 black and white electronic ink-screen e-reader in a The most high-end position, after the price of 1999 yuan.

Mother's Day in the recent period, the grand price had tried to promote its e-reader bambook activities of daily price is 1339 yuan bambook pink Mother's Day package at the price of 799 yuan. When asked whether there are price cuts after the program, responsible for sales bambook grand Chan Chun Hu, Senior Director of Operations told our reporter, "does not rule out the possibility of appearance of related strategies."

Patriot Hu Xiaodong, general manager of new business division also revealed that the Patriot end of this year priced at 498 yuan will be introduced to the electronic reader.

Thus opening the mass market?

Statement by Hanwang Technology, the large-scale decrease the price of electronic paper book is a result of the full market research the decision was made after the purpose is to start the popular book market.

But also suggested that greater significance is clear Hanwang this stock. Insiders told this reporter, according to the disclosure of Hanwang Technology earnings data, at present its coffers at least 48 million units should be finished and semi-electric backlog of paper books, so a large number of stocks, called Hanwang " Ake Achilles heel. "

"Unlike other products, electronic products, inventory, the longer the lower the value." Liu Chaogui said.

Whether to open the mass consumer market, or to clear inventory, if the reader really make electronic shift from the gifts and electronic products for the public, will have a significant impact on the entire e-book industry.

But no one can guarantee the effect of lower prices, even the biggest price cut Kingship, in the face of the reporter asked, they can only say that until the specific effects can be seen two or three months.

Within a few days after the price cuts, the reporter compared to several businesses Taobao Mall Sales of electronic readers and found that low-end products, prices, or have a certain appeal. Kingship, a special agent in the electronic paper book sales records, businesses can be seen that price in May after 4 days, 84 sold Hanwang N510, and in the prior sales of the same half of the time required.

"Price cuts are a strong medicine, will stimulate the user." Handheld reading online Chinese Wu Wang, general manager of e-readers responding to the wave of price support. He also mentioned that the HW-led wave of electronic paper book will also affect prices of other manufacturers, so that the electronic reader to keep prices within reasonable limits, in this sense, "HW is doing a good thing."

But also some effect on the price question. "Users are not too expensive because the electronic reader instead of buy." Mobile Internet Industry Alliance, Yang Xiaoming, Deputy Secretary-General believes that the market demand for e-reader is not able to train up prices. "Like Apple iPhone4 price is useful, because many people want iPhone4, and it is too expensive, so if price cuts, sales will inevitably increase."

But the e-reader and iPhone4 different, different from e-readers and even the computer, cell phone, not necessities. "You can call using a mobile phone or laptop, playing games, reading books, listening to music, watching movies ... ... What can I do with books? To be used only to read. But love reading people who are not so much. "

Ultimately, the scope of e-books or to meet the needs of minority, lower prices may have some effect. But even lower prices, "can not suddenly become all love reading." Yang Xiaoming says.

The low end of the war

E-book sales in Kingship Taobao standings can be seen, priced 599 yuan of products sold 1,056 in the near future, priced 699 yuan of products sold 495 ... ... into a full price and sales almost inverse relationship. Top of the page in sales, more than 2,000 rare electronic reader.

Whether it is made in accordance with its own investigation Hanwang Technology, or third-party consulting firm, according to reporters in the interview process research and get feedback, 500 yuan is the best number of public acceptance.

Also in Taobao, the same price, the electronic reader to bring only the most direct effect is also reflected in the low-end products. For the thousand or more e-reader, no matter how much its price cut, none had significant sales growth.

No doubt, the price in thousand dollars less, or even 500 yuan electronic reader products will become the mass market mainstream. And far as the present situation, the market competition has become fierce.

Newman, Onda, Taipower, OPPO, Patriot ... ... more and more hardware manufacturers to introduce an electronic reader, although they do not necessarily use PVI's screen, or even may not be necessary for electronic e-reader Ink screen, but the low price, and the psychology of young users well versed in a variety of products, manufacturers introduced considerable market.

"Newman launched in May last year, a 499 color books, has sold 90 million units out." Liu Chaogui told this reporter. Although this use of non-electronic ink electronic reader screen like a large MP4, but its sales are almost the heyday of black and white e-reader sales of all products combined.

"In the past the domestic electronic reader positioned as a deep reading needs of users, partial penetration of aging." Sun Peilin that if you want to open the mass market, young users of the market should not be overlooked.

Strand breaks in the pain industry

Detonated from the 2008, 2009 and 2010 wind and water, to the trough in 2011, just four years, the Chinese e-reader market is the climax to a low ebb. E-book fire up the domestic market too fast, too quickly extinguished.

Industry to participate in a dialogue process, a charge of e-bookstore Hanwang Technology executives said the sale of electronic paper book Hanwang loss, promising that after the sale of electronic paper book market. He noted that electronic paper is different from other books and IT products, electronic paper book will be a follow-up after the sale to income.

Yingjian also repeatedly in the previous interview, said that in 2011 the contents of Hanwang bookstores will make every effort to build. According to Liu Yingjian ideas, as long as the user base with a large base, you can bring more benefits for enterprises. May 19 came the good news Amazon also confirmed Yingjian ideas, Amazon CEO Jeff Bezos announced on this day, the Amazon Kindle e-book site to purchase the number of users has more than printed books.

However, when the domestic book market to achieve the results of the Amazon, this is a subject who did not dare to predict.

"In the industry chain up, turn on the mass consumer market opportunity is very slim." Momochi Network CEO Cheng Sanguo such judgments. In his view, still too fragile for the current e-book industry chain, pull one hair and body moving, in the end chain of hardware manufacturers, naturally can not avoid the impact of the first encounter.

According to Cheng Sanguo argument, if the rise in the electronic reader at the beginning, leading hardware manufacturers will be able to enhance the value chain of content, can really understand the book recruited, who understand the operation of digital publishing, electronic bookstore, and now Bu Zhiyu faced a passive situation.

"There is depth of 50,000 readers, this industry can initially hold up." Cheng Sanguo that really help to cultivate the reader's e-book is a step by step way vertical ignored. There are also a considerable number of book lovers, but no one giving them the opportunity to experience this quality electronic reading.

So far, the chain of e-book industry still does not meet any of the content of user demand platform appear. Status of the industry is: Whether the purchase of any one of the electronic reader, lover of books can be found through its electronic bookstore you want the content. Thus, the purchase of electronic readers just as a consumer, the follow-up value of the weak.

If the market can successfully activate, electronic readers, or have a chance, then, the electronic reader attracted by the price users will also send in handy.

This is exactly the price the best results can be achieved. The difference repair chain, who is also the price must pay. And Newman, the Patriot and other vendors, HW almost all energy on a book on electronic paper, electronic paper books to the core product Hanwang need to train yourself in this market. "Can not expect others." Sun Peilin this evaluation. Although a risky move, but not necessarily a way.

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