China's MP3 player market: pure audio and video MPA3 player, the support of RM/RMVB format
2008-08-18

China's MP3 player market: pure audio and video MPA3 player, the support of RM/RMVB format

The MP3 player market is one of the fastest changing consumer markets as customer needs and desires change and technology advances. To some extent, the diversification of MP3 functions is the inevitable product of market development. MP3 players that only offer music playing function are no longer competitive in the marketplace. MP3 player was a piece of luxury goods several years ago, but now it is a piece of general consumer goods. Now, it is as popular as walkman was before. However, as both portable players and consumer demand diversify, players that only have basic functions can no longer meet consumer demand. For this reason, vendors shift to the field of video MP3 player. MP3 players that only provide audio function are generally available in the mass market, but they still have considerable market space In 2007, large-screen, high-capacity multifunction video MP3 player remained the most eye-catching market segment in China's MP3 player market. User groups were further divided. Market competition evolved from price competition to brand competition and strength competition. Here is a figure about the sales volume and its growth in China’s MP3 market, which is according to the recently report released by CCID.

Video MP3 playerDue to the division of pure MP3 player and video MP3 player in MP3 player market, the main two type MP3 have its own field. In 2007, Video MP3 players make up the main part of MP3 player sales. As the increasing development of technology, video MP3 players have seen their screen size grow from 1.0 inch at the beginning to 1.8 inches and then topping 3 inches. As screen size continues to hit new records, the mainstream products in the market have also changed. According to the CCID report, 2.0-2.4 inch video MP3 products have gradually gained a mainstream position, occupying 60.2 percent of the overall sales volume. What’s more, most MP3 vendors are trying their best to upgrade the screen size but also enhance the products quality to appeal to consumer’s desire.

Here are the sales Volume in China's Video MP3 Market in 2007 by Screen Size base on CCID consulting

Pure audio MP3 playerAlthough the MP3 player is divided into two function: songs and videos, the pure audio MP3 market also has its high concentration. In 2007, the hot sale of video MP3 really made a major impact on the pure audio MP3, however, the pure audio MP3 also seized its advantages. Based on the MP3 market, in the pure audio MP3 field, foreign brands have obviously advantages. In 2007, 49.8% of China’s pure audio MP3 player market was concentrated in the brands of the top 5 brands, namely Samsung, Apple, Sony and UNIBIT. And among these 5 brands, foreign brands accounted for 36.3%. Through the pure audio MP3 market is shrinking, Enterprises such as Apple and Samsung still adhered to their long culture and continued to create a "music culture" for their products. In terms of appearance, small size, elegant appearance and fashion became the marketing spots for pure audio player products. For pure audio MP3 player vendors, creating more "music" culture attached to their products and brands is very important. Listening anywhere at anytime should be the primary function of their products. "Small size, elegance and beautification" should become the future development directions for pure audio MP3 player products.

Here are the sales Volume in China's Pure Audio MP3 Market in 2007 by Brand released by CCID consultingSupporting RM/RMVB formatIn the China’s MP3 player market, the largest breakthough is supporting RM/RMVB format. According to the report released by CCID, today, RM and RMVB formats introduced by Real Company account for almost 80% of all online video formats, with huge market and user groups. The year 2007 was a year of big growth for them. It is believed that the era of Real player has arrived. In 2008, MP3 products that support full RM/RMVB specifications will become a new center of competition in the MP3 market. China's MP3 player market will continue to maintain a steady growth momentum in the next 5 years. But, its growth rate will drop year by year. In the next 5 years, sales volume will have a CAGR of 7.9%, while sales revenue will achieve a CAGR of 5.9%. Sales Volume and Growth in China's MP3 Player Market, 2008-2012

Sales Revenue and Growth in China's MP3 Player Market, 2008-2012