Hisense Acquires Toshiba TV to Highlight New Industry Kinetics

Recently, the news that "Hisense bought Toshiba TV with 12.9 billion yen" is encouraging and intriguing.

China is a big country in household appliances manufacturing and exports, home appliance industry ranks first in the world, and a batch of leading enterprises with a scale of 100 billion yuan have emerged. As China's economy has shifted from a high-speed growth stage to a high-quality development stage, the home appliance manufacturing industry must also achieve a transformation from big to strong. Toward the front of the global market has become the common pursuit of leading Chinese home appliance companies.

In recent years, the home appliance industry has actively participated in structural reforms on the supply side, accelerated the transformation of development methods, focused on mastering core technologies, and expanded the mid- to high-end markets. It has achieved remarkable results, and a good momentum of mutual promotion of industrial upgrading and consumption upgrading has already taken shape. From the perspective of color TV products, in the face of people's demand for extreme audio-visual effects, the stage of market competition with big screen winning and high-end being king has arrived. As an industry leader, Hisense relied on innovation to drive the launch of ULED LCD TVs with first-class quality and pioneered the development of laser TV products that will lead the future. These products with independent intellectual property rights have won awards in the industry and won the favor of high-end consumers. According to statistics released by Zhong Yikang from January to September this year, in the 80-inch or larger ultra-large-screen TV market, the market share of Hisense's laser television accounts for more than 40%, and the market with more than 85 inches accounts for more than 60%. This shows that China's color TV companies rely on television display technology and video image processing technology to break the foreign brands firmly occupy the high-end market situation, but also tore off the domestic color TV "low quality and low price" label.

With the continuous improvement of core competitiveness, Chinese household electrical appliance companies have placed greater emphasis on allocating resources globally and strive to win greater development through “going global” and “going up” to achieve a shift from Chinese products to Chinese brands. Haier, Hisense and other companies adhere to the global operation of their own brands and continue to increase their international influence through overseas establishment of factories, cooperation, and sports marketing. According to statistics, Haier’s large-scale household appliances accounted for 10.3% of the global market in 2016, ranking eighth in the world for the eighth time; Hisense ranked third in color TV shipments in the global market for two consecutive years.

It should be said that the overseas “creation” work of Chinese household electrical appliance companies is rather challenging. It faces both fierce competition with multinational giants and the need to make every effort to change the inherent brand perceptions of consumers in various countries. Therefore, while insisting on cultivating self-owned brands, choosing the right to acquire international brands may be a realistic choice for accelerating and expanding. Haier, a leading white faucet, acquired the first international kitchen appliance brand GE Appliances and New Zealand's top home appliance brand Fisher & Paykel, and built a strong international brand matrix. Practice has proved that this can not only form a super-entry for the global market, but also deeply satisfy the needs of complex and diverse users. It can also rapidly integrate overseas markets, technologies, and industrial chains to effectively enhance the company's global competitiveness. At present, China's color TV companies are gaining momentum in the international market. However, compared with Samsung and other top companies, the gap in share is still very large. Therefore, pursuing the goal of building a world-class brand, Chinese color TV companies are struggling to develop their skills while overseas expansion still needs to be accelerated.

In the 1980s, the Japanese color TV brand was popular in the Chinese market, and many Chinese people were familiar with the advertising phrase “Toshiba, Toshiba, Toshiba in the new era”; now, China’s color TV companies rely on innovation and hard work to win the market, Hisense Through the acquisition of Toshiba TV to accelerate the internationalization of the layout, in the changing times, China's home appliance industry has already emerged strongly. With the acceleration of transformation and upgrading, Chinese manufacturing industries, including home appliances, will focus on creating in China, Chinese brands, and Chinese quality. While rewriting the global industrial development map, they will bring greater surprises to consumers in all countries.