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At the recent HTC VIVE Developer Summit, Cai Ling, Director of the Home Appliances Division at GfK China, shared her insights on the virtual reality (VR) retail market in China. GfK specializes in tracking the sales and performance of consumer electronics, home appliances, IT products, and communication devices in the domestic market. Her presentation provided a comprehensive view of how VR is evolving in the Chinese market.
According to Cai Ling, the development trajectory of China's VR industry closely mirrors that of other mainstream digital products. In its early stages, VR captured the attention of the tech community. After a period of rapid growth, it has now started to enter the mass consumer market. However, she noted that current VR headsets still need to better align with consumer expectations in terms of both experience and value for money.
Despite these challenges, Cai Ling believes that the potential of the VR market in China is immense. She emphasized that if the right positioning can be found for Chinese consumers, the industry will eventually break through into the mass market.
Looking at global trends, the European market has been dominated by HMD (head-mounted display) products, not mobile-based VR boxes. GfK data shows that from Q3 2016 to Q2 2017, Europe saw 2.2 million VR headset units sold, generating 327 million euros in revenue, with 182 million euros in sales during Q4 2016 alone.
In comparison, the Chinese online market has grown rapidly. Over the past 12 months, VR headsets generated nearly 6 million units in retail sales, totaling 940 million yuan. It’s estimated that the market will reach 1.2 billion yuan in 2017.
Cai Ling also pointed out that the Chinese market is undergoing a transformation, with low-quality mobile VR products gradually losing ground. The future growth of the market is expected to come from HMDs that offer a balanced combination of immersive experiences and portability—products that best meet public demand.
Moreover, the success of the VR industry depends on the synergy between technology and content. By 2020, revenue from VR software is projected to surpass that of hardware. Audio quality is also becoming a key factor in the overall VR experience.
For more detailed insights, you can refer to the full report titled “GfK Virtual Reality Retail Market Overview.†Below are some highlights from the report:
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As VR continues to evolve, we will keep you updated with the latest industry analysis and developments. Stay tuned for more exciting updates!