The dust is falling on the ground.
On April 17, the unveiling ceremony of TCL Industrial Holdings (Guangdong) Co., Ltd. was held in Huizhou TCL Technology Building (hereinafter referred to as TCL Holdings). This marks the official appearance of the brand-new TCL Holdings after the restructuring of the group.
This is the best explanation for the market and the most desirable answer for the market. As the fastest growing brand in China’s color TV industry, the performance of TCL TV in the world in 2018 is amazing. Sometimes, restructuring is important to live better.
TCL Holdings gives the market a perfect explanation
TCL Holdings has made the best interpretation of its good performance.
In the first quarter of 2019, TV sales data showed that TV sales in the first quarter increased by 32.5% year-on-year to 8.443 million units, a record high in a single quarter. Among them, the sales volume of TV sets in overseas markets increased by 50.9% year-on-year to 5.95 million units, accounting for over 70% of total sales.
In the market performance of the global color TV industry in the first quarter, TCL is the best, in the same market, bringing more imagination space to the market. Even TCL has already left Samsung, LG, and Sony far behind in terms of growth rate.
In 2018, TCL achieved operating income of 113.36 billion yuan, which was flat year-on-year; net profit was 4.07 billion yuan; of which, net profit was 3.47 billion yuan, and it increased by 30.2% on the basis of a 66.3% increase in net profit in 2017.
When these positive factors are added together, TCL would usher in the best time in history. The official landing of TCL Holdings on April 17 means that TCL Holdings will have a better boost in future business models, globalization and technological innovation. At the same time, TCL Holdings’ future strategy is clearly visible.
Li Dongsheng, chairman and CEO of TCL Group and chairman of TCL Holdings, said TCL Holdings wanted to achieve the corporate vision of becoming the world’s leading smart technology group, focusing on four core application scenarios for families, individuals, travel and the community, and was committed to providing users with the most outstanding intelligent and healthy life products and services.
No one doubts TCL’s vision and strategic vision as in the past few years, TCL’s product structure optimization and adjustment has laid a good foundation for TCL’s present and the future.
For example, in terms of a product structure optimization, TCL TV continues to increase the proportion of sales of mid-to-high-end products. The proportion of sales of smart TVs increased from 77.6% in 2017 to 84.4% in 2018; 4K TV sales accounted for 2017. 26.4% rose to 39.6% in 2018.
Product sales are just in front. Behind this, TCL is building a global ecological platform through the development of the Internet of Things and artificial intelligence.
TCL has never advertised that it is a big man, and has never been willing to give pointers to the country. TCL is like a silent leader with a pragmatic character.
A real amnesty requires a voice in the international market. Today, TCL has successfully taken the first step and become the second largest global color TV sales.
After decades of use, TCL has made an amazing leap with continuous innovation. This is actually one of the signs of becoming a big hit in the home appliance industry.
The growth of TCL is obvious to all, and it is so open. It never slanders others but is constantly accumulating, including experience, technology, brand, marketing, and other aspects, which played a decisive role for TCL Holdings to take the second step.
Three expectations of TCL Holdings
The establishment of TCL Holdings is not a simple structural adjustment. It is actually the best time for a second venture. TCL Holdings brings three expectations to the market:
The first expectation is to empower AI x IoT. TCL Holdings will accelerate the transformation and transformation and form a new capability of AI x IoT for smart technology and the Internet of Things. AI × IoT is to meet the diversified and intelligent scenes of users, and more to reflect the needs of users, IoT device functions and AI capabilities to create a rich scene of exponential growth.
The second expectation is to improve profitability. TCL Holdings needs to improve asset operational efficiency, improve product competitiveness, and significantly increase profitability. The essence of improving profitability is that TCL Holdings has a sound ecological chain and technological innovation capability, and is attacking globalization with all categories. What’s important is that TCL has more brand premiums and brand value by building its own brand, which is a key part of improving profitability.
The third expectation is digital transformation and global operations. TCL Holdings will accelerate its digital transformation and enhance its technological innovation, intelligent manufacturing, and industrial infrastructure capabilities; it will consolidate and strengthen its global advantages and open up more stable overseas niche markets.
For example, the TCL Intelligent Factory, which is on the way to digitalization, uses digital twin technology to open up physical and digital factories, enabling pre-production rehearsals, monitoring, and diagnostics in production, and post-production evaluation and optimization.
From this perspective, the digital transformation will also help TCL achieve higher yields and obtain more profits from the main business.
In terms of globalization, TCL is even more important. With a set of data, we can prove the trend of TCL globalization.
It is expected that by the end of 2019, TCL will launch a total of 134 official sites worldwide, and use it as an important platform for product information release, brand display, after-sales service, community management, and traffic integration.
In addition to technology, brand, and channel, TCL’s growth lies in his tolerance. For example, cooperation with Xiaomi.
Xiaomi has a perfect ecological chain, but it is a first-grade primary school student in the home appliance industry. Without core technology and production advantages, TCL in the process of cooperation with Xiaomi, make full use of technological advantages, production advantages and service advantages, to empower Xiaomi, thus making Xiaomi become an Internet home appliance brand.
These strong pieces of evidence prove the strength and mind of TCL. Even this is one of the important links in the TCL construction ecosystem.
The past few years TCL played the first inning of the play, now with the current venture it is playing the 2nd inning. With a brand, product, technology, channel, prestige, and global advantages, TCL Holdings’ expectations for the market are very high.
However, that’s TCL’s character. Until there is no result, they are different from other rivals who are good at singing and marketing showbiz, they will take every step firmly. Every step which is sound.
The goal of TCL Holdings’ “Second Start-up” is that within five years, TCL Holdings will achieve an operating income of more than 200 billion yuan, becoming the leading smart technology industry group in China.
This is the mission and vision of TCL Holdings and the future at its fingertips.
[Blue Technology] Luo Shi