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In India, China’s TCL Group is posing great threat to Samsung

It’s exceeding everyone’s expectations!

On November 5th, two days before Diwali, Chen Shikai, general manager of TCL India, received an urgent email from a channel dealer asking for coordinate transshipment.

As TCL 65-inch TV was sold out at their retail stores, they request the goods transfer, hoping to delivery and install it, during Diwali, to a consumer who paid a deposit of 10,000 rupees.

Such a boom in TCL’s sales in India is not unusual this year. The sales of color TV of TCL Electronics, from January to October, surged 350% compared with the same period of last year.

“The sales of TCL’s large-screen TVs are totally beyond our expectations. Comes to 2018, Indian consumers will consider TCL when choosing 4K TVs and large-screen TVs. This year, we can feel TCL has a lot of strength in marketing, operation and brand promotion ” said a TV salesman at Croma, which is located in the center of Pune and a home appliance chain owned by Indian business giant Tata.

From Samsung and LG to Sony, now the Indian color TV sector is facing a strong Chinese rival, TCL.

Even though it is now the world’s biggest seller of color televisions, Samsung has to be wary of TCL, which is growing so fast. Samsung’s threat is on the way.

Abandon cost-effective, focus on high-end

Different from other Chinese color TV manufacturers in their strategies on cost performance, TCL Electronics focuses on high-end segments, based on user experience, technology and brand rather than price.

In terms of user positioning, TCL Electronics designs and creates different products to meet different groups, mainly aimed at middle-aged users and high-end users, providing them with extraordinary audio and video experience and smart life.

4K TV, Android TV and QLED TV are the focused products that TCL Electronics tries the Indian market. Unlike other regions, Indian consumers’ natural preference for music results in their emphasis on sound quality and sound effects when choosing color TV.

It is because of the fantastic audio-visual effects from TCL TVs equipped with Harman audio that touched the Indian high-end crowd, more concerned about technology maturity and sound effects than Chinese consumers.

The moment when the wonderful TCL 4K TV was unveiled in India, it immediately surprised the high-end crowd.

“The sharing and recommendation between high-end people is another key to the brand to open the market. So, TCL’s high popularity also lies in good experience and word-of-mouth effect,” said Chen Shikai.

iFFALCON, with the features of youth, fashion and technology, is a sub-brand of TCL Group, mainly targeting young and single users aged 25 to 35, giving them the latest smart experience and the most cost-effective shopping experience.

And together with TCL Electronics, it is also roughly aimed at high-end people, who have certain rights to speak, good professional growth and economic foundation with the pursuit of high-quality life, forming a strong demonstration effect.

For now, TCL is currently available in nearly 26 models in India, including ordinary TV, smart TV, 4kTV, Android TV and QLED.

The key to TCL’s success is product stratification and channel differentiation.

On product quantity, TCL Group is the most in India compared with the other Chinese home appliance enterprises. Make different positioning on different products, which also forms great complementarities for dealers.

TCL Electronics focuses primarily on India’s offline market, while IFFALCON adopts the strategy of full intelligent product line and has brought out India’s first all-Android smart brand with product specifications ranging from 32/40 to 65/75 inches.

What caused Samsung to panic is not just TCL, but the speed of TCL’s global development.

Taking the Indian market as an example, TCL entered the Indian market in 2016, when it opened the market via association with Amazon.

As a global strategic partner of TCL, Amazon has a good relationship in North America and Germany, which is why TCL became the fastest growing brand in India.

In 2017, TCL began to launch offline markets, gradually establishing its own distribution network from the south and east.

By the first quarter of 2018, TCL had established a full channel network with 13 core distributors covering the whole country and partnered with all large offline electronics retailers such as Croma, Reliance Digital, Vijay Sales, and Kohinoor. As of Q2 2018, more than 3,000 stores began to sell TCL products.

In May 2018, iFFALCON, TCL Group’s online sub-brand, exclusively sold at Flipkart, was launched in India to cater to massive young consumers on smart TV and high-tech products.

OEM and price wars are not TCL’s way to open up the Indian market, but to bring the best products and the latest industry applications to Indian consumers. The curved TV boom in India in 2016 is due to TCL’s launch of 4K TVs and curved TVs.

From selling self-owned brands to selling a lifestyle, TCL keeps delivering new ideas. From 2016 4K TV and curved TV, to 2017 TVs equipped with Harman audio, and then to 2018 India’s first Google-certified Android QLED TV 65X4 and a full range of AI Android TVs (iFFALCON launched the world’s first certified 32-inch AI Android TV in India), this series of products has saw changes in lifestyles that have been successfully favored by high-end consumers.

Like China “Double Eleven”, almost all Indian businesses try everything to boost sales during Diwali, so does TCL.

During Diwali in previous years, TCL became one of the most popular brands on Amazon’s platform, pushing to popularize big-screen and smart 4K products.

More than 65% smart TVs and 30% 4K TVs sold in Amazon is from TCL, far exceeding the industry level. The TCL 65X4 QLED launched at Amazon was sold out in less than half an hour.

Within five months of its launch, iFFALCON has become one of the five most popular brands of Flipkart, with all products rated at around 4.5 points.

During the Flipkart Big Billion Day Diwali, iFFALCON’s the world’s first certificated 32-inch Android TV is one of the most popular among 32-inch smart TVs.

And the sales of its 55-inch 4K Android smart TV and 65-inch 4K Android smart TV ranked the top three and second, respectively, with both products scoring above 4.34, totally popular with high-end consumers.

Local time in India, at 10:30 am on November 6, after Chen Shikai celebrated Diwali with Indian employees and their families in advance, he worked with the staff of the Supply Chain Department to help dealers solve the shortage of goods.

The day, compared with Bangalore, the air in Mumbai was much better. Chen Shikai, who has worked in India for nearly ten years, is clearly familiar with everything here.

With its familiarity with the market, TCL India has found the best growth path.

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