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At the recent HTC VIVE Developer Summit, Cai Ling, Director of the Home Appliances Division at GfK China, shared insightful perspectives on the virtual reality (VR) retail market in China. With a background in monitoring the sales of consumer electronics, home appliances, IT products, and communication devices, Cai provided an in-depth analysis of VR’s evolving role in the Chinese market.
According to Cai, the trajectory of China’s VR industry closely mirrors that of other mainstream digital products. Initially, it captured the attention of the tech community. Following a period of rapid growth, VR is now gradually entering the mass consumer market. However, she noted that current VR headsets still need to better align with consumer expectations in terms of user experience and cost-effectiveness.
Despite these challenges, Cai emphasized that the potential of the VR market in China is immense. She believes that if the right positioning is found for Chinese consumers, the industry could soon achieve a breakthrough in the mass market.
The VR network has compiled key highlights from the report:
From a market growth perspective, the European market is dominated by HMDs (head-mounted displays), excluding mobile VR boxes. According to GfK retail data, between Q3 2016 and Q2 2017, the European market saw 2.2 million VR headset units sold, generating €327 million in revenue. In Q4 2016 alone, sales reached €182 million.
In comparison, China’s online VR market has grown significantly, reaching nearly 6 million units in the past 12 months, with sales totaling 940 million yuan. It is projected that the market will hit 1.2 billion yuan in 2017.
The Chinese VR market is currently undergoing a transformation, with lower-quality mobile VR options losing ground. Looking ahead, HMDs are expected to be the main driver of growth due to their balance of high-quality experience and portability—making them ideally suited for public demand.
The development of the VR industry relies on both technological innovation and content creation. By 2020, revenue from VR software is expected to surpass hardware sales. Additionally, audio quality plays a crucial role in enhancing the overall VR experience.
For more details, you can refer to the full report titled "GfK Virtual Reality Retail Market Overview." Below are some of the key charts and graphs from the report:
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As VR continues to evolve, we will keep reporting on the latest developments and insights from the industry. Stay tuned for more updates.