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Lay off workers, cut production, change industries! What happens to the TWS industry in 2021?

via:新浪科技     time:2022/1/8 17:01:38     readed:316

Recently, IDC released the Quarterly Tracking Report on China's wearable Device Market in the third quarter of 2021. According to the report, China's wearable device market shipped 35.28 million units in the third quarter of 2021, up 5.0 percent year-on-year. The significant decline in market growth is mainly caused by weak market demand, unclear product positioning and partial supply pressure.

It is worth mentioning that among all kinds of wearable devices, the market shipment of earwear devices reached 19.9 million units, up 40.0% year on year. The market is still growing fast, driven by products in the lower price segment. As more mobile phone manufacturers focus on the layout, the growth of the real wireless market will be particularly significant.

A TWS headphone industry person also told Jiwe.com that, first of all, the major brands in the past two years to the TWS headphone product line is becoming more and more perfect, users can choose more products; Secondly, with the increase of shipments, many functions originally appeared in high-end models are gradually infiltrated into low-price products; Finally, since this year, users in many countries and regions have indeed taken "cost performance" as an important criterion in choosing TWS headphones.

Brand high copy orders sharply reduced

Based on the changes mentioned above, the end market demands on the supply chain will also change. In the rapid growth of the TWS headphone market, shanzhai products are also an integral part of the industry; Once in the early days of market development, manufacturers engaged in the manufacture and sale of shanzhai products can be said to make a lot of money.

"In the early stage, the demand for highly imitation brand earphones was very high, and factory orders were full; However, once the sales volume of such products is large, the interest loss degree of genuine products is also more serious. Therefore, in the past two years, the strength of brands to suppress shanzhai products is increasing. Part of that is through legal channels and part of that is to increase coverage across the price range."

According to a manufacturer of counterfeit products, the most popular of all counterfeits are the Airpods series, which Apple has been cracking down on in recent years to reduce the impact of counterfeits on sales. In addition, the author also noticed that the price of products on major e-commerce platforms also decreased year by year. I searched for the second-generation AirPods on JD.com, and the discounted price was as low as 700 yuan.

Other brands are even more dazzling in the variety of low and medium price products. The author found by checking the official website of ZOL that among all the TWS earphones of all brands included, there are as many as 1814 products under 200 yuan. Top three on the hot list are Lenovo LP80, Redmi Airdots 2 and Rambler LolliPods, priced at 104 yuan, 79 yuan and 158 yuan respectively.

Among the 1,814 models, 507 TWS headphones are equipped with the noise-canceling function. Lenovo LP80 and Redmi Airdots 2 are still in the top three of the hot list, including the Redmi Buds3, which is priced at 159 yuan.

  (图片来源:ZOL官网截图)(Photo source: screenshot of ZOL official website)

In this situation, small factories that rely on shanzhai orders to survive are struggling.

"The first two years were the busiest," the manufacturer said. "Although each year was worse than the last, compared with this year, our orders last year were still able to maintain the factory operation. "Since the beginning of this year, orders throughout the factory have decreased by more than half, mainly due to a significant reduction in demand for high imitation orders for branded earphones."

Small and medium-sized factories living space pressure

It is well known that the performance of the smartphone market is quite low this year, for mobile phone brands, they have to seek more growth points. As a result, the TWS headphone line has become an important focus for many brands this year.

As IDC notes in its report, the earpiece market grew 40% year on year, driven by lower-priced devices, as more and more handset makers moved aggressively into headsets, even as other wearables struggled.

"In fact, the fastest growth this year is android brand earphones, and the products of major manufacturers basically cover the low, middle and high price segments," an analyst told Jiwe.com. Even many low - to mid-priced products also come with good configurations, which are sufficient for most users to meet their daily needs. "With both brand security and cost-effective advantages, users will definitely prefer it, which is inevitable in the consumer electronics market."

In the face of the aggressive brand camp, both shanzhai white brand manufacturers and their supply chains have become powerless to compete. "Now almost all resources are tilted towards the brand camp, and the concentration of industry shares will become higher and higher. Just like the mobile phone industry, the big factories will be busy in the future, while the small factories will be directly 'finished'." The manufacturer of high imitation headphones mentioned above regrets.

The manufacturer also told Jiwe.com that the "shuffle" in the TWS headphone industry has accelerated since last year. Industry Matthew effect, many small factories have been shut down, forced to switch. "While order volumes may be sustainable for most mid-sized suppliers, But what we are seeing more is that most manufacturers are reducing staff, reducing costs and reducing capacity."

Even so, as TWS headphone penetration continues to increase, market size growth is bound to slow further and share concentration will continue to increase at that time. It can be expected that in the next three years, the TWS headset industry will become more mature, and it is bound to embark on the same track as the mobile phone industry -- after a larger scale survival of the fittest, the market share of both the terminal and the supply chain will be highly concentrated. (proofreading | nissin)

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