The relevant performance reports released by the household appliances industry show that in the first half of 2017, the television industry has experienced declines or even losses in profits that have not been seen for many years. Peng Jianfeng, deputy secretary-general of the China Electronics Video Industry Association, said that the reason can be attributed to the high price of TVs caused by the continuous rise in panel prices. There has been no promotional activities. In addition, the previous years were a major sports year. Overdraft sales over the next few years.
However, domestic TV brands such as Skyworth, Hisense, TCL, and Konka have gained more market share in overseas markets. In the first half of 2017, TCL LCD TV sales increased by 11.3% year-on-year, and nearly half of the revenue came from overseas. Hisense Electric's operating income increased by 2% year-on-year. According to the export data from China Customs, in the first 5 months of this year, the export volume of Hisense TV increased by 28.2% year-on-year, which was higher than the industry average of 10.4%. Konka's sales of overseas flat-panel TVs from January to June increased by 29% year-on-year.
Huge investment in technology is hard power
If it is said that the "sea" of Chinese televisions was mainly made by manufacturing more than a decade ago, now Chinese TV companies fight overseas for technology and brands, so domestic brands need to gain a firm foothold in foreign countries. These two points are indispensable. .
The IFA ((Internationale Funkausstellung Berlin), which is held each fall, shows the industry trend in the new TV season. The IFA in 2017 has just ended. In this exhibition, Chinese TV manufacturers have demonstrated to the world their achievements in this field.
Sales ranked in the world's top three color TV industry TCL officially launched on the IFA this year, equipped with Baidu to develop artificial intelligence systems, X6, C5, P6 three series of new television. TCL X6 XESS as a QLED TV color quantum dot TV, equipped with the latest generation of primary color quantum dot display materials, has a high color gamut, high color capacity, color purity, color characteristics. Chinese color TV brand leader Hisense focused on betting on his exclusive ULED TV at this IFA exhibition. ULED is Hisense's own research and development of LCD TV picture quality enhancement technology, multi-zone backlight control and multi-level fine dimming technology to enhance LCD TV picture quality. As a global OLED TV benchmarking company, this year after Wallpaper wallpaper TV launched, Skyworth once again expanded its OLED product team to bring the latest product W8...
Domestic manufacturers have invested heavily in independent technology research and development, screen production line construction and application innovation to narrow the gap between Korean and Japanese television brands and hope to gradually find their own position in the international brand competition in high-end markets. The products on the IFA mentioned above are the "works" that Chinese companies hand over in international competition. The data shows that in recent years, the market share of these manufacturers overseas is gradually increasing.
Deep plowing for many years to enhance the brand's international image
The increase in the sales volume of domestically-produced TVs overseas cannot be separated from the strategy of manufacturers to strengthen the internationalization of their own brands. From product launches to brands to the sea, the brand's influence can be rebuilt to reshape the new core competitiveness and brand image of Chinese TV brands and increase brand premiums. Ability to improve the added value of the product.
TCL is the first color TV company in China to carry out cross-border mergers and acquisitions. As early as the beginning of this century, TCL had conducted cross-border mergers and acquisitions with France Thomson, Alcatel, etc., and gradually penetrated into the European market. It is reported that in 2016, TCL China TV business revenue was 19.17 billion yuan, a decrease of 12.2% year-on-year, while overseas market revenue was 13.92 billion yuan, an increase of 16.2% year-on-year.
Skyworth acquired the Sinoprima brand in Africa in 2014 and Metz in Germany in 2015. At the end of 2015, Skyworth signed a contract to acquire Toshiba's plant in Indonesia. Both parties completed the delivery in the first half of 2016, which became Skyworth's color TV production base in Southeast Asia. At the same time, Skyworth obtained the authorization to use the Toshiba TV brand in Southeast Asia. In the same year, Skyworth acquired Strong Media, a well-known set-top box brand company in Europe for 24 million euros, and used its sales channels and brand influence to enter the high-end European market.
Hisense began to lay out overseas markets very early. On July 31 last year, Hisense announced that it had spent US$23.7 million to acquire the entire equity and assets of the “Father of LCD TVs†Sharp Mexico plant, as well as access to Sharp TV Americas brand rights and all channel resources. Currently, Hisense has 16 branches, 5 production bases, and 7 R&D centers that are localized overseas. In April of this year, Hisense announced that it will become the official sponsor of the 2018 World Cup and use its major sports events to increase its brand awareness overseas.
These veteran domestic TV brands had a long time to go to sea and exported their own brands. They are now familiar with foreign users' preferences, spending habits, and policy environment. They have a certain foundation in channel distribution and it is time to harvest them. “There are no shortcuts for overseas expansion. We have also paid tuition fees for many years. Now everything is going smoothly and it's time to harvest.†Zhu Xi, deputy general manager of Hisense International Marketing, told the China Electronics News reporter.
After many years of intensive cultivation, many years of hard work have paid off. Peng Xiandong, general manager of China Consumer Electronics Co., Ltd., told the “China Electronics News†reporter: “Foreign demand for products such as Siu Chi’s foundry factories has been greatly reduced, while sales of established and old TV manufacturers in overseas markets have increased. The overall brand image of Chinese TV manufacturers has been improved."
Brand building still needs efforts in European and American markets
After years of overseas expansion, China's color TV manufacturers have occupied the first position in Southeast Asia, Latin America and Australia. In the most important markets in the United States and Europe, according to the latest data released by HIS, TCL ranks third in market share in the US market. Li Dongsheng, Chairman and CEO of TCL Group stated that in the European market, TCL’s current sales growth has not yet benefited. On the way to the top spot, Chinese color TV manufacturers still need to work harder.
For the two most developed markets in Europe and the United States, Wang Cheng, general manager of TCL Multimedia COO and China Business Unit, said in an interview that not only is there a requirement for product quality and supply, but also cost control, not these capabilities. It's impossible to get in, but if you only have these skills, you may not even have bones that are eaten by retailers after you enter.
Li Dongsheng said: "Compared with the products of the leading international brands, I think there is no difference, and even more innovative in design. So we must improve the quality of international operations and increase brand premiums." In the North American market, TCL has been rated as the fastest growing TV brand in the US market for three consecutive years.
In the European market, Skyworth implements the dual-brand marketing strategy of “Skyworth+Metz†to accelerate the expansion of the regional market. At the same time, it is launching products that meet market demands for different markets, and continues to explore diversified sales channels to enhance Skyworth’s own brands. The popularity in overseas markets. Liu Weizhi, president of Skyworth Group Co., Ltd., once stated that Skyworth will adhere to the principle of walking on two legs in overseas markets. First, OEMs will develop from scattered customers to big brands, and secondly, the promotion of private brands, through the opening of branches or Acting as a brand of Skyworth to expand overseas markets.
For major smart TV brands, accelerating overseas distribution is a general trend, but opportunities are often accompanied by risks. In addition to product technology, the importance of brand building does not need to be repeated. In order to pursue market size and profitability, it is not advisable to adopt quick success and short-term practices. Solid promotion of brand building is a major way to truly penetrate foreign markets.
For this reason, companies should continue to work hard to establish a good corporate image in their locality as a strategic goal, adding some sense of responsibility and intimacy to the brand, which will make it easier for local people to truly recognize and accept it. In the near future, through the efforts of the Chinese people, these branded products can also enter more overseas families.
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