The most popular unveiling of fake VR head display

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Unveiling the fake VR head display market: the cheaper it becomes, the more it becomes "garbage"

in early February, Facebook was blasted to close 200 oculus rift offline experience stores, almost cutting down 40% of the 500 experience stores opened in the United States. It is difficult for international giants to do VR business, and the domestic VR head display market has also been referred to as "cold winter" since the second half of 2016. Since 2016, VR has become a popular concept in the venture capital circle, followed by the emergence of a large number of VR head display devices. Some start-ups began to independently produce VR hardware equipment, while others focused on developing VR content

on February 9, 2017, a VR helmet production and assembly factory in Dongguan City

on February 9, 2017, in a VR box assembly factory, an employee was preparing to assemble the semi-finished products of VR boxes

on February 9, 2017, in a factory in Dongguan, staff were putting lenses into VR boxes

but at present, more than 90% of consumers in the domestic market purchased VR boxes less than 100 yuan, Almost all of these boxes are produced in small factories in Huaqiangbei, and the lowest cost price is about 10 yuan. Even the "brand" VR boxes of some start-ups are directly ordered from these manufacturers

as a result, I found Chinese makers and visited many VR box production plants, revealing a secret Jianghu of low-cost VR head display equipment, including brutal low-cost competition and unscrupulous copying; There is the helplessness behind the small profits and quick turnover of the factory, as well as the disdain and greed of the supply chain

when the VR industry is still in the cold winter, the excessive proliferation of low-quality fake helmets will undoubtedly have a negative impact on the future of VR technology in the consumer field

status quo

from consumer products to promotional gifts

the structure of "VR box" is very simple. Two lenses, a plastic box, a comfortable bandage, and some adjustable nearsighted lenses. Even if it is a complete product, you can directly watch VR content by borrowing the inserted computing power and display screen

but in fact, in the VR box, there is no operation. The lens is only used to enlarge the display screen in the box so that the image occupies your entire field of vision. In essence, it is a kind of "visual deception"

in the SEG communication square in Huaqiangbei, most shops sell VR equipment, almost all of which are simple "VR boxes", and the price is generally between 40 yuan and 100 yuan. This is exactly the VR equipment that most Chinese people have come into contact with in the past year

vr box was first invented by Google. In 2014, Google officially released cardboard, which is the prototype of VR box. However, because there is no technology content, Google does not intend to make it a business. Instead, it makes all its technologies public

however, in China, a large number of factories in Huaqiang North have simply made a "big deal" of VR boxes without technical content

gfk found through market monitoring data that in 2016, the average monthly sales of VR hardware in China's retail market reached 382000 sets, the average price of a single set was 137 yuan, and the number of relevant brands in the market reached 480, most of which were glasses boxes

vr head display still has the aura of "black technology" when it first entered the consumer's vision. Some well-known enterprises and start-ups have entered the VR field, and VR has also become one of the hottest outlets in early 2016. With VR content and screen display, many "Xiaobai" users will still be attracted by the virtual reality world when they wear the box for the first time

tuyere gave birth to start-ups and downstream OEM. Mr. Liu, a supplier of lenses for VR head mounted displays, said that since the beginning of 2016, the company's orders have increased all the way. Many companies that did not do VR head mounted displays have also started to consult prices or place orders directly

a large number of low-quality VR head displays have poured into the market, and consumers' interest in VR has declined sharply. Looking for Chinese makers in a group of VR consumers, I found that many consumers have changed from novelty a year ago to disappointment. "Is this the legendary VR? The experience is too bad," said a friend

a shopkeeper confirmed that when VR head display was just launched, many consumers were interested and would ask in the store. However, if the process requires low viscosity raw materials, VR head display can hardly be sold offline. A salesperson of Huaqiang beisaige revealed that more than 100 VR boxes were sold in a month, and few people paid attention to the high-end VR all-in-one machine

under the difficult sales situation, today's VR head display has quietly become a promotional gift for major enterprises. Zhuchenxu, the VR entrepreneur, revealed that the delivery of VR head displays now relies on the bulk purchase of businesses and corporate customers, and then sent them to consumers in the form of gifts. "In short, most VR head displays in the market are gifts given by others."

a Qiang of thousand magic mirrors also confirmed this view. According to him, most customers are customized for gifts. "Some buy gifts, some buy food as gifts, and even a construction site owner ordered a batch of gifts for workers."


cheap head shows mostly come from "Huaqiangbei"

in many VR industry communication groups, there are also continuous messages of selling VR boxes. Most sellers take "manufacturer direct sales", "wholesale low price" and "customized R & D" as sales labels to attract customers

trace the source of "manufacturers but low polishing speed direct selling" of these VR head displays, most of which are electronic manufacturing plants in Shenzhen, Dongguan and other places. The more familiar name to the public is "Huaqiangbei"

the VR box that makes consumers "experience too bad" is likely to come from the well-known Huaqiangbei

a set of data confirms this view from the side. According to the national retail monitoring data of GfK, in the VR hardware market, as of june2016, the market share of VR head display equipment with a price of less than 200 yuan had reached 96.4%, of which 44.3% had a price of less than 50 yuan, and this proportion continued to grow. Most of these cheap VR boxes come from factories in Shenzhen and Dongguan

a research report shows that in 2016, the total sales volume of world-renowned VR brands reached 6.3 million units. The small factory in Huaqiangbei, however, usually delivers more than 300000 units a month. In other words, the annual shipments of the ten factories visited by Chinese makers have exceeded those of Sony, HTC and other international giants

in September, 2014, storm video released the first generation of storm magic mirror, which is the first VR headset product released by a domestic giant. Mr. Song quickly smelled the business opportunity and immediately decided to "get some prototypes to have a look". I thought it was very simple, so I took the initiative to talk to customers about orders, and then started the road of VR box assembly

"we can do whatever is hot. In the early years, we also made a balance car. Later, the balance car didn't work, so we began to make VR head display." Mr. Song said

this is almost the common story of most VR head display manufacturers today. The production lines of these small factories almost follow two standards: what is hot to do, and what can be copied quickly without technical barriers

this is the reason why the "Huaqiangbei" was well-known nationwide in the early years. Today, although Huaqiangbei has been transformed and upgraded, the genes of the previously ubiquitous Shanzhai factories have been preserved and blossomed everywhere in Guangdong

Mr. Song's small electronic processing factory is located in an industrial building in Anle Industrial Zone, Bao'an District. It is a house of about 60 square meters. Two rows of counters and more than 20 plastic benches constitute a simple production line. Few people can think of such a simple plant that can assemble everything. VR boxes, power banks, balance cars, etc. are almost consumer products with low technical barriers

Mr. Song said that most of the raw materials are purchased from outside, and they are sold after being assembled and pasted with various logos and labels. Among them, the VR box series sells best

according to the investigation, many factories are producing VR box boxes. Because the meaning of "VR box" is straightforward and easy to understand, and it is a "common term", no one can be registered as a trademark, so it does not involve infringement disputes

in fact, even if the trademark is registered and the patent is applied for, if the litigation channel is adopted, the process usually takes 1-2 years. After two years, the air outlet of the VR box may be gone

all this is making VR boxes a cheaper and cheaper business


the cheaper it becomes, the employees themselves call it "garbage"

the storm magic mirror that first released VR boxes in China. Its series of products range from 59 yuan to 499 yuan, of which the first generation products and the fourth generation products that are popular in the market are priced at 99 yuan and 199 yuan respectively

about 100 yuan, which is the average price of VR head display at present. However, according to the survey of Chinese makers, many VR start-ups' VR boxes are basically purchased from electronic manufacturing plants in Shenzhen and Dongguan and become their own brands

according to GfK retail monitoring data, in January 2016, the average price of VR products was 188 yuan. By June 2016, the average price had dropped to 91 yuan, a decrease of more than 50%. By 2017, the price will be lower

I visited many factories as a customer and found that the single purchase price of ordinary VR boxes was about 20 yuan, and the minimum purchase price was 10 yuan. After OEM, they became "self owned brand" VR boxes

the Shanzhai manufacturing plants in Shenzhen and Dongguan can make money by reducing quality, lowering costs and making small profits but quick turnover. However, for VR boxes with low technical content, the result of repeated cost reduction is that the quality and user experience of VR boxes are getting worse and worse, so that even factory employees and supply chain customers are not optimistic about VR products themselves

Mr. Liu, who provided VR head display bandage for the processing factory, had a deep understanding. In the past, the customer customized VR bandage cost 8 yuan. Later, the customer controlled the cost and asked for 80 cents for a headband. "Now there is no requirement for headband, and there is no bottom line. The bandage has reached a few tenths of a millimeter from the four millimeter or two millimeter elastic band."

VR products that seem high-end and mysterious in the venture capital circle are described as "garbage" by many employees on the production line, and the boss has no intention to experience them himself. An interesting detail is found. In the nearly 10 factories visited, few bosses have VR head display devices in their offices, and none of VR SABIC has a wide range of PP product portfolio source players in their applications

Mr. Liu also experienced VR headsets sent by many customers, but he was very disappointed. "To put it bluntly, these are garbage, there is no future, just making money."

but the possibility of making money is also decreasing. When the price of VR box is depressed, the profit margin is also squeezed. In the early days, the profit of a VR box can be tens of yuan. Now, when the profit of a VR box is the lowest, it is less than a yuan


Shanzhai VR head show dumping overseas

according to Wang Huan, vice president of China search venture capital, although the competition of VR boxes is very fierce, as long as there are profits, factories can still do it. "They have been used to the production mode of small profits but quick turnover, and the gross profit of many start-ups is lower than this."

"there is certainly no technical content. We can only roll forward products from generation to generation and earn sales profits through continuous iteration and updating." A Qiang, the sales manager of Qianhuan magic mirror, said frankly. Qianhuan magic mirror is a VR head display company with its own brand in Huaqiangbei


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