TCL’s fierceness, Hisense’s stability, Skyworth’s anxiety, perhaps this is the most realistic portrayal of the Chinese color TV giants in 2019.
Hisense’s globalization has taken a second step. Around the world, after several years of paving the groundwork, Hisense is in a steady growth trend.
From the perspective of global growth, TCL has the fastest growth and the highest growth rate in 2018. In North America, India, and Europe, a wave has greatly affected Samsung, LG and Sony.
The globalization of Skyworth is in the most anxious role compared to TCL and Hisense. It is not that Skyworth is not doing well, but when compared to TCL and Hisense, there is still a certain distance in terms of channel construction, brand cognition, sales and team building.
After a change in the leadership, it is necessary to make some moves in globalization in 2019, especially the three factors of sales promotion, channel expansion and brand building, which is the top priority for Skyworth ’s globalization.
Why does ReviewTech think that Hisense, TCL and Skyworth are the representatives of China’s colour TV globalization? In terms of global colour TV sales, in recent years, the global sales of these three companies have remained in the top six.
Through the data, we analyze the possible market layout and direction of the three companies in 2019.
Speaking with facts, the best performance of China’s colour TV globalization in 2018 is TCL.
In Spain, sales of TCL colour TVs increased by 171% year-on-year in January-October; in the United States, TCL ranked second in sales for four consecutive months from July; in India, it increased by 350% from January to October.
In South Korea, TCL’s sales have far exceeded expectations since it entered South Korea in May 2018. Even Samsung and LG have to pay great attention to and dynamically monitor TCL’s local sales.
TCL’s impact on the industry is that Samsung, LG and Sony all have to dynamically track the performance of TCL everywhere and at all times.
Once TCL has launched a new product in the country, and even the price has a clear advent with the price advantage; Samsung, LG and Sony, immediately made a price adjustment to deal with TCL.
The rapid expansion is the best generalization of TCL’s performance in 2018. This includes accelerated channel expansion, brand awareness and sales improvement worldwide. This year TCL has given a shock to the colour TV industry.
The expansion of overseas channels has accelerated, which is one of the key factors for the high level of TCL sales in 2018. From online to offline, from traditional stores to experience zones, TCL’s sales strategy closely follows the user’s sales strategy. TCL’s user ratings are the highest among the two e-commerce giants in India, Amazon and Flipkart.
In particular, TCL integrates some of the European and American suppliers with content advantages in terms of resource integration. It can be said that this has taken a step forward with a sense of advancement.
Because the sales trend of American TV does not depend on the hardware but on the content of the TV itself. Therefore, integration with local content providers is beneficial to the layout of TCL in Europe and America and is a mandatory sub-item.
According to the analysis of ReviewTech, TCL will aggregate various resources and offline activities on the basis of 2018 performance, and integrate sales through cross-border to promote sales and brand awareness.
In the recent US “Black Friday”, Hisense sold 650,000 4K TVs on the same day. Compared with the sales of 520,000 4K TVs in the same period last year, Hisense has achieved remarkable results in the US market this year.
This is just a microcosm of Hisense’s globalization. In fact, since Hisense sponsored the European Cup in 2016, including sponsoring the World Cup in 2018, sports marketing has become one of the best passes for Hisense globalization.
In the United States, Spain, the United Kingdom, France, Canada and other countries, Hisense has become the most recognized Chinese brand. This stems from the extensive and deep distribution of Hisense’s local channels.
In the United Kingdom, for example, Hisense has established cooperation with well-known channels such as Argos, AO, Amazon, John Lewis and Richer Sounds. At present, Hisense TV has entered all Top 10 channels in the UK.
Sports sponsorship has stimulated global channel players, and they have taken the initiative to cooperate with Hisense. In the United States, mainstream channels such as Wal-Mart, Best Buy, Sam’s club and Target have established good relationships with Hisense for many years.
With the brand dividend of sports marketing, Hisense’s global brand value and market value continue to expand: In 2017, Hisense International Marketing achieved sales revenue of US$3.9 billion, up 22.3% year-on-year, of which self-owned brands accounted for 59.1%.
Since the beginning of this year, it has maintained double-digit growth in major markets such as Europe, South Africa, Australia, North America and Japan.
From January to September 2018, Hisense’s overseas brand sales increased by 27.5% year-on-year. Among them, Hisense’s Canadian brand sales increased by 95.1% year-on-year.
According to data from January to August this year, Hisense Group’s overseas revenue exceeded US$3.2 billion. According to IHS’s latest 2018 global market sales data, the average size of Hisense TV from January to September this year was 46.8 inches, ranking first among the top 10 brands in global shipments. This also marks that Hisense has gradually established its dominant position in the global big-screen TV market.
In addition, Hisense, which uses technology to build international standards, has conquered the market. 2018 Hisense Laser TV has now obtained the United States, Europe market access certification, and access to the international mutual recognition of CB certificate.
The CB system is an international system operated by IECEE (International Electrotechnical Commission). The certification bodies of each member country tests the safety performance of electrical products based on IEC standards. The test result is the system in which CB certificates are mutually recognized in IECEE member states.
As Hisense’s globalization has accelerated, especially in terms of brand and technology, it has been widely recognized by the market, and Hisense’s international mergers and acquisitions are also accelerating.
First, it acquired a 95% stake in the “TVS company” held by Toshiba Japan, followed by the acquisition of Gorenje, a Slovenian white goods manufacturer.
The effect of the former mergers and acquisitions began to appear in Japan: In the first three quarters of this year, the share of Hisense TV (Hisense + Toshiba) in the Japanese market reached 13.3%, surpassing Sony, ranking in the top three of the Japanese market.
ReviewTech analysts believe that 2019 will be the second year of Hisense International’s acquisition. Based on the basic advantages of globalization, Hisense will actively sort out the sales strategy and channel expansion after the merger (especially to help Hisense own brands enter new channels), and fully release Gorenje’s global brand and Technical advantages.
It is fair to say that Skyworth’s globalization is not slow, and it has been a long time ago. However, from the perspective of globalization, Skyworth’s globalization is weaker than TCL and Hisense. This is based on the fact that in Spain, Germany, France, the United States and other European and American countries and channel, colour TV industry veterans, combined with third-party data (to sales and growth) speed is based on the conclusions drawn.
It is undeniable that Skyworth’s sales of global colour TVs can also enter the top six, which should not be the goal of Skyworth. In other words, Skyworth is not satisfied with sales entering the top six in the world, they hope to use their own brands to have a place in the world.
Therefore, the German Metz acquisition occurred, which is one of the ways they followed the globalization of TCL and Hisense. However, compared with TCL and Hisense, Skyworth’s acquisition effect is not obvious. Mainly reflected in three aspects:
First, Metz has had glory as a local German brand. If you regain the past sales and brand status of Metz, you need a certain process. In this process, the market response directly affects the future of Skyworth.
Second, in terms of Germany, the Metz brand is difficult to trace in many stores in second-tier cities. If Skyworth builds its channel advantage with Metz, it also needs a process. Persuading channel dealers to re-sell Metz and Skyworth brands, it is necessary for channel operators to see the current performance (market evaluation) and the future;
Third, TCL and Hisense have global R&D centres, factories and diverse channels, which help consumers label Hisense and TCL with global technology thickness and global pedigree.
Although Skyworth also has a global layout, whether in the industry or from the perspective of channel vendors, Skyworth’s internationalization is slightly weaker than TCL and Hisense in terms of channel and market influence.
We hope to see the three troikas of China’s colour TV industry’s globalization – TCL, Hisense and Skyworth go hand in hand, occupying the market with the advantage of the group army.
But it may be too idealistic. At present, Skyworth’s global business process is not slow, but it must be admitted that at least at present they have a lot of room for improvement in the approach, strategy and localization of team building as compared to TCL and Hisense.
ReviewTech analysis believes that brands and channels, these are the two replenishments that need to improve speed in the globalization of Skyworth in 2019. It is worthwhile to learn TCL and Hisense, their localization team building and management, their channel construction and resource integration, worthy of Skyworth learning.