Viewpoint

1. Until now, the DSC market was still in a stage of introduction, with a market scale of only 136,000.

2. The DSC market will increase dramatically.

3. Brand competition will become the primary means to capture market share.

4. Chinese Manufacturers and vendors of DSC’s must strengthen their technological research.

I. Overview of the DSC market in 2000

1. Economic Environment

a. International economic environment
b. Domestic economic environment

2. Industrial environment

a. International industrial environment
b. Domestic industrial environment

3. Technology development
a. International technology development
b. Domestic technology development

4. Policy environment

5. Financial environment

II. Total market volume and composition of DSC in 2000

1. Total volume and growth
2. Product market composition
3. Regional market composition
4. Industrial market composition
5. Features of private consumption market

a. Consumption customs
b. Consumption features

Chapter Highlights

CCID, using their own information and surveys, scientifically analyzed the entire DSC market scale and growth rate.  It also analyzed the mainstream product composition according to the differences in their resolving ratio.  According to analysis of distribution in the largest sales areas in, Beijing represents the most developed area the North, Shanghai in the East, and the Guangzhou and Shenzhen in the South.  The sales volume of these areas occupies the largest proportion - 66.9%.  The developing areas also represent a large potential market.  DSC’s still are mainly used in industry.  However, it will become more popular among private consumers as the market develops and the price decreases.  This chapter analyzes the features of the individual consumption market.

III. Analysis on market supply and demand of DSC’s in 2000

1. Analysis on market demand

2. Analysis on market supply

Chapter Highlights

With the increase of domestic urban individual consumption and prices in 2000, the rapid development of Internet, the rapid increase of domestic PC sales, the lowering cost of DSC’s, and the increased promotion of DSC manufacturers, the sales volume of DSC in 2000 has increased by 83.8%.  In the next 2 years, the demand for DSC’s will be very large.  Up till now, the domestic DSC market was dependant on imports to meet the market demand.  Many domestic manufacturers only produced a few low-end models.  Therefore, there is a significant gap between market demand and product supply.

IV. DSC Competition in 2000

1. Product Competition

2. Technology Competition

3. Brand Competition

4. Price Competition

5. Competition of Channels

6. Service Competition

Chapter Highlights

Following technological developments, DSC’s are undergoing rapid improvements.  With lower prices and fierce competition, manufacturers are concentrating on research and development of new technology and channels in order to enlarge market share.  However, because of the still relatively small scale of the market, manufacturers need to pay extra attention to services.

V. Main market features of DSC in 2000

1. Product evolution is accelerated, becoming a multi-functional and family-oriented product.

2. Continuous lowering of prices promotes sales.

3. IT and Consumer Product channels are combining into unified value-added channels.

4. Promotional activities are strengthened and diversified.

VI. Main factors affecting DSC market development

1. Initial investments in DSC are high, as are the cost of product supplies.

2. There are no distinguished industrial categories, leading to  the spread of “smuggled products”.

3. The linkage of international and domestic markets   simultaneously provides both challenges as well as opportunities.

VII. Forecasts for DSC market developments from 2001 to 2003

Chapter Highlights

Up till now, DSC have still been in the process of being introduced to Chinese markets.  With the development of Internet and the popularization of PC’s, there will begin to be a market demand for DSC, and sales therefore will increase dramatically.  Based on the features of the DSC market, combined with research of historical data and products, it is estimated that the DSC market will increase by over 60% in the next 3 years.  This market promised enormous potential.

VIII. Summary and suggestions

Data

The total sales volume of DSC in 2000 was 136,000, with an increase of 83.8% from 1999.  Please refer to Figure 1.

Figure 1      Sales Growth Trend of the DSC market in 1999 and 2000

Data Source：CCID

Based on the division of picture element of , the high, middle and low level of DSC are demonstrated in Chart 2.

Figure 2       Market Composition of DSC in 2000

Data Source：CCID