Monthly shipment of 30 million yuan profit is only a hair of Shenzhen VR market microscopic

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In a factory next to Shenzhen Longda Expressway, one by one, formed VR glasses are being sent to Xiao Gao with the assembly line. He skillfully labels, packs, and quickly puts the return line.

Like the 30 companions on the production pull line, he only repeats one to two actions from morning till night.

Every day, Xiao Gao posted 3,000 VR glasses and completed the package. Overtime is up to 5,000.

The picture shows Xiao Gao is packing VR glasses. The VR glasses packaged are packed into big boxes. They are then transported downstairs by small carts and loaded into big trucks that have long been waiting. When the trucks are full, they are ready to go to the pier. There, these VR glasses will be sent to the other side of the ocean - the United States Wal-Mart.

Xiao Gao did not know where these VR glasses passed his own hand and he did not care. He only knows that now the factory has added a few more pull cords for VR glasses. He hopes he can be more proficient, so that he can pack more boxes a day and pay higher wages.

1

With the VR companies bursting out of these days, they have arrears in wages, layoffs, deductions, insolvency, and difficulties in survival. The scenes here are really hot.

The head of the factory, Gu Lele, told reporters that the former child had just received orders of 3 million U.S. customers, and the flow cable had been expanded to eight. In order to deliver goods before Christmas Eve, the workers worked extra busy and the staff was not enough. .

It has been estimated that 8 pull lines can produce approximately 30,000 VR glasses per day, and the monthly shipping scale is in the order of one million.

According to Gu Lele, there are roughly 10 factories of this size in Shenzhen, and one of the super-sized factories has a daily shipment of 300,000 to 500,000 units. In addition, there are 100 large and small workshops in Shenzhen and 3,000 units of sunrise. In this way, monthly shipments of Shenzhen VR glasses will not fall below 20 million units.

The picture shows that a small workshop in Shenzhen is producing VR glasses. “The market conditions in September are good. It is estimated that it will reach 30 million units.” Gu Lele vowed, “The 10 million units that burst out before the media have long been over.”

2

When it comes to Shenzhen, this wave of VR can be traced back to 2014.

At that time, the Storm Mirror was just born and Shenzhen was about to start moving.

However, market feedback is not good.

Thousands of magic mirrors are the first team to enter VR glasses in Shenzhen. As early as the second half of 2014, they have already begun to enter the market. Today, Thousands of Magic Mirrors have become the most successful model for offline channels, and almost half of VR glasses in Huaqiangbei Electronics Market. The shop is branded "Thousands of Magic Mirrors."

Chen Li, a founding team member, told reporters that in 2014 the team was licking blood and had a monthly loss of 800,000.

Like Chi Fung, most of the teams involved in VR glasses were losing money from the end of 2014 to the first half of 2015.

However, since the second half of 2015, the Shenzhen VR market has entered a period of rapid growth.

During this period, a box named VR BOX suddenly fired.

This is a product produced by Juzhongchuang Company. Its boss told reporters that he did not know why. The VR BOX became inexplicable and became the best selling model in Shenzhen. Foreigners would recognize this brand.

"After December last year, sales began to rise upwards. Before that, 2,000 units a day went out; but in December, the amount of customer demand suddenly rose and it was out of stock, and from that time on, we started. Increase production capacity," said Mr. Fang.

3

The popularity of the VR glasses market continues to rise.

In the blink of an eye in 2016.

With the world's top three HTC, Oculus, and Sony announced the pre-sale and shipping time, the concept of VR began to stir violently. Along with the booming investment tide and the wave of overseas pornographic websites, a new round of VR was set up worldwide. heat.

As Shenzhen, the world's largest exporter of consumer electronics, it first felt the warmth and madness of this trend.

Since March 2016, the Shenzhen VR glasses market has entered an outbreak.

“When we were in March, we were able to reach 20,000 units a day, which is still not enough. We have been out of stock and out of stock. Shipments are too big. At that time, we first paid the full amount and then shipped the goods.” Mr. Fang said. "Customers are directly going to the factory to wait, and how much to get away immediately."

The market's instant rise made everyone see this profitable business. For a time, a large number of people began to enter the original mobile phones, mobile power, watch, do flat, all come, have increased VR production line.

As long as it is a hot product, such as VR BOX, there will be a large number of imitation products in the market, and the VR market is a mixed bag.

The picture shows a large number of fake VR BOX replicas on the doorstep of small workshops. The original industry price will soon be pulled down, and profits will shrink dramatically.

This is Shenzhen. The cottage manufacturers always have an amazing response rate to the market.

This kind of defiance prevented Mr. Fang from having a hard time, but he could only swallow hard.

“The ex-factory price of the second generation of VR BOX was 45 yuan, and the counterfeit goods disrupted the market. After May, our ex-factory price dropped to 18 yuan. No way, imitation goods have dropped to 11 yuan.” Mr. Fang It is helpless.

4

With the continuous increase of suppliers, market demand has been met and the industry has entered a period of stable growth.

Gu Lele and his team have been preparing for more than half a year. In May this year, they switched from mobile phones to VR glasses market. Although he did not step on the flash point in March, his market judgment made by his mobile phone for many years allowed him to quickly develop.

He told reporters that there are only two kinds of best-selling products on the market, either high-end all-in-one machines or low-end VR mobile phone boxes. The middle price is hard to do.

"The 30-yuan box is not easy to sell. This is the Chinese market. Everything you do cannot be separated from China's national conditions." Gu Lele said.

The picture shows the corner of an ancient Lele factory display cabinet, including VR glasses with an ex-factory price of only 2 yuan, a counterfeit VR BOX, and an all-in-one machine. He told reporters that due to the low price of the box, the overall shipment volume will not be within one year. There is too much attenuation.

“From March to May this year, the mobile phone box mainly wiped out overseas and first and second-tier cities; from May to September, it was sweeping in second, third, fourth and fifth-tier cities. Such a large domestic market has not yet been cleaned. Finish it."

Gu Lele continued, "At this stage, it was not technology that was marketing. We did not do well in this channel."

The channels referred to by Gu Lele are nothing more than overseas and domestic.

This wave of VR glasses in Shenzhen was first brought up by overseas markets, mainly to the United States, the Middle East, Russia, Europe and Africa. At that time, domestic sales accounted for only 20%.

After May, the domestic trend became fiercer and started to account for 40% of all sales.

It is worth mentioning that "Gifts" just need to account for 30% of the total domestic sales.

Many 4S stores and hypermarkets purchase thousands of VR boxes at one time and are specially designed for shipping to customers. On the one hand the price is cheap, while the concept is more novel.

5

The market that seems to be filled with gold is actually surging. Slightly not paying attention, a moment of infinite scenery may be defeated, become a group of wolf's mouth food, from then on, disappeared mountains.

Since the beginning of this year, although the volume of shipments has increased month by month, prices have been declining, and profits have become even thinner.

After a visit, it was found that in April, hot-selling VR glasses still have a profit of 10 yuan. In October, profits have already dropped to 2 or even 1 gross.

This is the magic of Shenzhen, backed by a strong supply chain, almost equal to a gross profit can still be sustained.

However, Boli also means that the industry's first round of reshuffle will be staged.

"The wolf has now eaten the wolf stage. The big wolf eats the big wolf and the little wolf eats the coyotes." Many industry insiders describe it.

The big wolf refers to a big manufacturer, and the little wolf refers to a small workshop manufacturer.

When demand shows a steady growth, the competition between the markets is almost saturated. This is more like a battle between stock markets: you are less and less, and you win and lose.

The number and amount of large orders on the market have stabilized, and the number and amount of small orders have stabilized. Thus, in order to reduce their respective costs, the Great Wolf and the Little Wolves played in their own territory war.

Whoever is more informed, who has stronger ability to take orders, whose channels are more solid, whoever has stronger tenacity, will continue to increase their internal strength.

This time, to survive, has become a top priority.

Once there is a problem with cash flow, whether it is a big factory or a small factory, it may be defeated and become a favorite food for wolves. Since then, in this VR arena in Shenzhen, there is no place for standing.

The battle between wolves also spread to dealers on the chain.

Since the price wars between large factories are staged at any time, once the dealers buy the goods, the goods may be overstocked and the goods may not be sold. This way, the distributors of the same chain dealers may be able to offer them at any time.

6

If you say that Shenzhen's VR eyewear battlefield is a match between the wolf and the wolf at the end of this year, then all the way to the next year, this is a battle between elephants and elephants.

IDG data shows:

The picture shows IDC data trend analysis. In 2016, the third-party mobile VR mobile phone box broke explosive growth; in 2017, the VR box will grow steadily; in 2018, the VR box will drop steadily; since 2019, VR glasses will drop dramatically, industry A large area began to shrink.

As such, under the circumstances that the growth rate will slow down next year, there will be more intense competition between manufacturers.

It is foreseeable that profits will be reduced again next year.

The danger of surviving conditions will pull the industry into the second shuffle.

At the end of this year, compared with the big manufacturers, they still have the ability to accept orders and sell channels. Then next year, a battle involving supply chain integration will start in the big factories that survive.

By then, supply chain supply chain, supply chain costs, supply chain support, and supply chain quality will be the keys to success.

"The first stage is more than marketing, the second stage is more than the supply chain. After that, it is technology, teamwork, propaganda, and a field battle. It used to be a phone call before." Gu Lele said.

"Isn't it going to be a price war next year?"

“In the magical place of Shenzhen, you think that the cost is already in the end and it is impossible to lower it. Some raw material components in the supply chain can refresh your three views again, and the cost can be reduced. It is really amazing!” Ancient music laughed.

Today, cheap VR glasses have hit a bayonet in Shenzhen, and in the profit margin gradually decline, the manufacturers are reluctant to leave, not only because they refuse to give up profits, but also because, in their layout, VR Glasses is the foundation. If you lay this foundation, you will be able to drop the second chess piece logically: one machine.

And just recently, Shenzhen's all-in-one price war has begun.

This is a more fierce battlefield, because its technology is more complex, its supply chain is longer, and its opponents are more fierce than the VR glasses. The market is even more unpredictable, and the affected stakeholders are also more tedious.

What kind of battlefield is this? What kind of ups and downs does it have in its development and where will its future go?

Please pay attention to the depth of the "Shenzhen VR situation" series in the second: "One machine open, another tough battle of menacing," VR theory of value recently launched.

Attached:

According to a number of sources, the VR Value Theory will be December 2015 to date, and the shipment data for the Shenzhen One Machine Market will be summarized as follows:

December 2015: hundreds of thousands of units

January 2016: About several hundred thousand units

February 2016: About 5 million units

March 2016: 8 million units

April 2016: About 10 million units

May 2016: 10 million units or so

June 2016: 700-800 million units, when the market slightly declined

July 2016: 700-800 million units

August 2016: 2000-3000 million units

September 2016: 2000-3000 million units

October 2016: 20 million units

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