For Hanwang eBook market share in exchange for lower prices

5 12 AP, China Electronic Book market "boss" Chairman Liu Yingjian Hanwang Technology Expo venues today accepted an interview with ZDNet. Liu Yingjian revealed that this year plans to reduce the margin to cope with fierce competition from electronic end markets, through the profits in exchange for market share.






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Hanwang last year, sales of books about 27 million units, accounting for more than 90% market share of e-books. With e-books, Hanwang landing Shenzhen SME Board, the day stock price rose 96%. Today, May 12 closing price of close to 140 yuan, more than the issue price of 41.9 yuan more than tripled.
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Hanwang the latest release of a quarterly filing, income more than 300 million yuan, up 351.95 percent compared to same period last year, net profit of 40 million, up 349.27 percent year on year.








Industry analysts believe that Kingship in the performance of its e-book market, the first-mover advantage. While the media has been reported in a number of brands to enter the eBook market, but because of time difference of R & D to listing, e-book market at present or in Hanwang products.








Next, with the other electronic products are all listed companies, market competition will continue to increase. And Qing dynasties Research Center reports that e-book sales for the first quarter of this year, 249,100 units (last year only 300,000 or so), which sold 164,500 units Hanwang, accounting for 66.04%. Still dominant position in the market, but compared to last year, accounting for more than 90%, has begun to fall.








Liu Yingjian told ZDNet that this year will consider lower prices in response to market competition. Current e-book price range Hanwang 1,300 yuan to 3,300 yuan in between, the lowest 1,100 yuan this year will introduce e-books.








It is understood that the cost structure in the e-book, E-ink e-ink screen accounts for about 1 / 3 to 1 / 2, is the most expensive parts. Current production technology of the screens are still monopolies in the hands of PVI, a shortage of the. E-book manufacturers in the market competition, price changes will directly affect the profit margin.








Liu Yingjian said Hanwang plans low-diversified portfolio of high school, the gross profit margin from 50% last year to adjust to about 30%.








The effect of reducing gross margin, which can play in driving sales on how much, Liu Yingjian no direct response. He carefully said that the market expected this year, the whole e-book 200 million units sold, not given Hanwang forecast sales this year.








But after an interview with Reuters, he said sales this year, at least 3 times last year, which is about 800,000 units.








"Kingship books ranked first in the market, and now can not find the second." Ying Liu Jian said that e-book is a "fast fish eat slow fish" in the market, Kingship in brand, channel, funds have a strong first-mover advantage and the threshold, while the competitors are likely to keep up a pace not eliminated.