Amidst the ongoing trade war between the US and China, the Chinese consumer electronics companies have been affected. However, in North America, there is a new “legend” in the home appliance industry. The counterparts including South Korean, Japanese and Chinese are trying to learn more from different channels.
Why are this sector and one company able to be independent? Why are their growth rates outperforming market trends?
Senior executives from the electronics manufacturers in the United States told Blue Technology that there are indications that the TV industry continues to lead the year and needs to be understood from three dimensions:
- Strong business insight will not be affected by trade friction
- High-end categories will continue to be issued
- AI and IoT formed a future profit growth point
In the context of the trade war and the continued decline of the global TV market, market performance has become the best touchstone. If the trade war is a human factor, then from two levels of interpretation, the lack of innovation and integration capabilities of the TV industry, AI and IoT flow in form maybe two important reasons for the continued weakness of the TV industry.
In fact, the TV market is returning to the ‘right track’, leading the industry trend with innovative technology, high-end category and the most advanced AI and IoT.
Samsung, Sony, LG are the old-fashioned TVs, or are the Chinese TV brands that are latecomers coming to the stage?
All the guesses were unveiled in front of the data. A recent TrendForce report shows that global TV shipments reached 49.87 million units in the first quarter of 2019, down 24.6% from the previous month and down slightly by 0.5% year-on-year.
The only highlight of the industry is TCL Electronics (01070.HK) from China. In the same period, sales of TCL electronic TVs increased significantly 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.
According to the latest January-May sales data released by TCL Electronics, its sales volume reached 13.414 million units, completing 42% of the annual target. Among them, the overseas market maintained a high growth rate, and TV sales increased by 43.1% year-on-year to 9.544 million units.
There are three reasons why the global TV forecast has the fastest growth rate:
First – Win in Pre-judgment
The above-mentioned seniors in the US home appliance industry said that after TCL became the fastest-growing brand in the world in the first quarter, they continued to dominate the growth rate of TVs in the second quarter. There are three main reasons:
- First, their strong insights allow them to correctly prejudge the Sino-US trade situation, which many companies cannot match;
- Second, in the high-end category, TCL is almost a ride, to understand the attitude of consumers in North America, the fastest-growing dark horse;
- Third, AI and IoT has become TCL’s future revenue of 200 billion new tracks, and now the AI and IoT bonus created by TCL has just set sail.
Another reason that has attracted a lot of attention from the industry is that from the data of well-known market research company NPD, in March of this year, TCL surpassed Samsung for the first time, and sales reached the highest in North America.
Especially in the US market, it has a special meaning. First of all, under the background of trade friction, many Chinese companies have been seriously affected, but TCL can be independent because TCL wins the pre-judgment.
The active overseas deployment of TCL Electronics will further reduce the impact of trade frictions. For example, TCL Electronics has factories in Mexico, Southeast Asia, Europe and India. In particular, the increase in production capacity in Mexico and Vietnam last year will expand and meet the market demand in North America.
This is an important reason for continued strength in North America, including the US market. Especially in the US market, TCL has aroused a Chinese TV wind, which has attracted great attention including Samsung and LG.
In 2018, TCL’s global TV sales surpassed LG in second place, and its impact is the ‘hidden’ shuffling of the entire industry are acceleration of supply chain integration, rewriting of North American and even global consumption habits and technological innovation drive.
Second – Win in Innovation
It is not accidental, but inevitable, that TCL Electronics became the second-largest TV sales in the world in 2018. Their trust in the global market is not based on low prices and marketing, but on the two cards of quality and technology.
From last year to the first quarter of this year, TCL Electronics’ practices are remarkable, mainly in several aspects:
The high-end products impress consumers. In recent years, TCL has been committed to product structure adjustment based on continuous innovation in technology. For example, TCL’s floating window full scene TV is not only a new concept TV but a pioneering design, artistic content and humanized technology, so that ‘floating window’ becomes the entrance to the whole family scene. In the smart home life, the core of the connected home appliances, lead the development of high-end products.
On May 17, TCL launched 11 85-inch and 75-inch large-screen luxury TV matrices. This includes the first 8K+5G QLED TV, the X10 QLED 8K TV, which won five global awards before the market. Smart, 8K, large-size TV, this is the keyword for TCL’s high-end products. The data shows that the sales volume of TCL smart TVs in the Chinese market and overseas markets increased from 76.3% and 77.6% in 2017 to 82.0% and 84.4% in 2018;
4K TV sales in the Chinese market and overseas markets increased from 42.7% and 26.4% in 2017 to 54.1% and 39.6% in 2018; sales of LCD TVs in the Chinese market and overseas markets accounted for 55% and above from 37.5% and 20.6% in 2017 to 43.1% and 25.2% in 2018. There is no extraordinary innateness. TCL Electronics’ pre-judgment capabilities and technological innovations complement each other and complement each other.
As the world’s leading intelligent technology group with operations in more than 160 countries and regions around the world, TCL has 28 R&D institutions, 10 joint laboratories and 4 national R&D platforms around the world, focusing on artificial intelligence and big data, new semiconductor display technology and materials, intelligent manufacturing and industrial Internet three major technological innovation research.
This is the domestic TV enterprise that has set up the largest number of R&D institutions overseas so far, and it is also the most important weight of its technological innovation. TCL Electronics has achieved rapid success in its globalization, and the answer given by its peers is to understand the market and implement it quickly. For example, in the first quarter of this year, sales of TCL LCD TVs increased by 50.9% year-on-year to 5.95 million units, accounting for more than 70% of total sales, and all regions achieved rapid growth year-on-year.
The North American market continued its strong growth momentum, with sales soaring 112% year-on-year; sales in the North American market increased by up to 75% year-on-year. The European market grew by 27.1% year-on-year, with Germany, Italy and France growing significantly. Emerging markets grew by 39.9% year-on-year, with markets such as Argentina, Ecuador, Indonesia and Australia being fast-growing regions.
Third – Win in The Future
TCL’s high-light performance in the market has aroused the attention of its opponents. TCL Electronics, which seemed to be obscured before, suddenly became the second-largest TV sales in the world in 2018, and this year continued its excellent performance last year, which made many foreign counterparts puzzled.
There is only one TCL in the world. People who don’t understand, that is the past neglected the existence of TCL. The success of TCL is not accidental. In fact, it has been running on the road to becoming a leader. Their capital is anticipation, innovation and the future. As far as personality is concerned, TCL is a very moderate enterprise in the Pearl River Delta region. It doesn’t exaggerate and exaggerate. It doesn’t like to play marketing gimmicks, and it won’t smash opponents to raise itself.
TCL always believes that true followers are based on technology, quality and brand, not on low prices. Therefore, TCL’s product structure adjustment in recent years has provided artistic enjoyment to elites with medium and high-end products. There are too many stories that should be told, but that is the past. The future is the future of TCL.
In September 2018, TCL European R&D Centre was officially unveiled in Poland, dedicated to the development and application of artificial intelligence technology, which also laid a solid technical advantage for TCL’s current full-field AI and AI and IoT layout. Clear signals indicate that TCL’s new track and future will be AI and IoT.
It is no exaggeration to say that in the next three years, only manufacturers that produce a single category and those that cannot provide users with connectivity services will be eliminated. Only those manufacturers that can provide all kinds of intelligent terminals can become the ultimate head players.
AI and IoT is more reflected in AI and IOT, device user needs, user’s potential demand, IoT device function and growing AI capabilities. The three interact and combine with each other to create exponentially rich growth scenarios to meet the diverse and intelligent needs of users.
This is the advantage of TCL. At present, TCL has 22 manufacturing bases around the world, with operations in more than 160 countries and regions around the world. TCL Electronics provides quality products and services, from home appliances to personal eco-products to pan-smart devices, and to smart solutions such as T-LODGE and T-Park, which are gradually covering all aspects of consumer life. TCL Electronics’ powerful intelligent terminal business strategy is a crucial factor in the growth of the company.
This is the future dividend of TCL Electronics, and it is also a force on the new track. Based on market performance, the US home appliance industry veteran judged that TCL Electronics (01070.HK) is still better than the industry in the global performance in the second quarter, and becoming the industry leader will become a high probability event.