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Domestic electronic loudspeaker industry affected by the COVID-19

China's electronic louder speaker industry is dominated by small and medium-sized enterprises and private enterprises, which are highly dependent on foreign countries and seriously affected by the COVID-19. In the short term, under the background of the global economic recession caused by the spread of the epidemic, great pressure and challenges have been encountered from production to sales. In the long term, with the continuous recovery of the domestic demand market, the overall trend of the industry's stability and improvement will not change, but the impact of the epidemic on the global economy and trade and the world's economic growth will cause the depression of the overseas market, which will affect the industry in a certain period of time , and bring directional guidance for the industry to adapt to the changes.

Basic information


Wireless headphones are the only bright spot, and the export of other major products has declined significantly

 

The epidemic has brought a significant impact on the economic development of various countries, and consumer confidence has declined. Consumers may reduce the possibility of spending to cope with future income decline or even unemployment. In addition, affected by the force majeure of the epidemic, countries take strict control measures, cancel a large number of cultural and sports activities, restrict the business of shopping malls, restaurants, hotels, cinemas and other public places, and seriously search commercial activities, which will further reduce people's consumption demand. China's electronic audio industry is highly dependent on foreign trade, and the slowdown of Global trade will cause greater challenges to the industry.


According to relevant data, from January to February 2020, the export volume of major products of China's electronic audio industry is 4.137 billion US dollars, an increase of - 0.21% year on year. However, if the wireless headset products are excluded, the export volume of the main products of the remaining industries is US $2.529 billion, an increase of - 23.41% year on year.


The export volume of wireless earphones is 49 million, up 37.14% year on year; the export volume is US $1.609 billion, accounting for 39% of the total export volume of major products in the industry; the export volume is up 90.43% year on year, driving the export growth rate of the industry to 18%.


Louder speaker products, wired headphones, microphones, amplifiers, vehicle navigation, laser disc players and other major products have been greatly reduced.



Demand: the impact of global epidemic highlights the importance of domestic demand market


China's long-term economic growth and its huge potential determine the growing importance of the domestic market in the electronic audio industry. Affected by the impact of the global epidemic, the importance of the domestic market will continue to increase. At present, China has been the second largest economy in the world for many years in a row, with a population of more than 1.4 billion and a large-scale market advantage. The huge consumption potential will not be fundamentally changed due to the impact of the epidemic. The huge market advantage determines the huge resilience and space of the domestic demand market. In addition, big data, artificial intelligence, block chain and other new technologies will continue to promote the transformation and upgrading of China's electronic audio industry, towards high-quality development; stable, open, preferential and efficient industrial policies will continue to bring huge institutional dividends to the industry development. Therefore, the short-term impact of the epidemic will not change the long-term development trend of China's electronic audio industry, especially in the context of the continuous downturn in the world economic growth itself, the development of the industry will be more dependent on the domestic demand market.


Supply: industry chain and supply chain system maintain healthy development trend


In the short term, the epidemic has a great impact on the industrial chain and supply chain of the industry, especially the production capacity of upstream chips is tight and the price of electronic devices is rising significantly. However, with the gradual resumption of production across the country, the supply shortage in the upstream of the industry has been alleviated. Some high-end electronic components are highly dependent on Japan and South Korea. If the epidemic continues for a long time, overseas suppliers will shut down or slow down their shipments due to the epidemic. Although adopting domestic alternatives will lead to risks such as tight supply and cost improvement, the overall supply side is relatively healthy and the impact on industry production is basically controllable.


As a professional audio supplier, our company will always be committed to providing high quality products for overseas customers.