At a time when the global TV market is sluggish, domestic manufacturers, including TCL, are expecting more revenue from emerging markets.Hisense acquired Sharp's Mexican factory and acquired Sharp TV's brand rights in the Americas, and later acquired Toshiba's television business. Skyworth has acquired the South African brand Sinotec, the German brand Metz brand in the past three years, and acquired the Toshiba Indonesia factory, obtaining the authorization of Toshiba TV brand in Southeast Asia.
In the cold of color TV, the overseas market has become an important territory for domestic color TV enterprises. Recently, TCL Multimedia further launched an offensive overseas.
On November 28, TCL partnered with Argentina's home appliance giant RADIO VICTORIA (hereinafter referred to as "RV") to formally sign a contractual joint venture in Buenos Aires with total investment of USD 150 million and will engage in television , Air conditioners, mobile phones and small appliances such as the production and distribution.
According to a notice released on November 30 by TCL Multimedia, there are two joint ventures, namely RVF and Sontec, respectively, and TCL Multimedia will subscribe for 15% of the shares of both, and TCL intends to change its participation in the Argentine market by entering into a subscription agreement Model, from the role of a relatively passive strategic partner into a shareholder with a stake in the joint venture, which in turn helped TCL to expand sales in South America.
The new joint venture is TCL's second base in Latin America following its joint venture with SEMP in Brazil last year, which marks a new milestone in its internationalization strategy and will further enhance the profitability of TCL's appliance business .
Enter Argentina
In fact, the cooperation between RV and TCL began in 2004 and has been 13 years old so far, which is one of the brand agency clients with the longest cooperation time in TCL overseas.TCL said the joint venture will rely on the vertical integration of the TCL industry In addition, RVC's manufacturing and channel development capabilities in Argentina help TCL's rapid development in Argentina and other neighboring countries. According to the joint venture's plan, it is estimated that the domestic market share of TV products in Argentina will reach 25% within three years.
It is understood that RV company was founded in 1947, is one of the three major consumer electronic products and home appliances industry in Argentina. Its headquarters and distribution center is located in Buenos Aires, the capital of Argentina, in the free zone of southern Argentina, Tierra del Fuego Owns a home appliance assembly plant covering an area of about 23000 square meters, enjoy various tax incentives.RV company in Argentina, more than 2,000 retail channels, after-sales service network throughout the country .2008, its branch in Chile , And started doing business in other South American countries.
As early as October 2016, Argentine President Mauricio Macrià © met with Li Dongsheng, chairman of TCL Group, and expressed the expectation that TCL will jointly develop with Argentina's partners to establish a joint venture company. At that time, Li Dongsheng responded that "TCL will adopt Direct investment in local production and supply chain approach, continue to expand TCL brand products in the Argentine market sales.
In fact, TCL has been targeting the mid-to-high end product market since its entry into the Argentine market with production lines including LCD TVs, refrigerators, air conditioners, etc. TCL's annual sales have grown from less than 20,000 in 2004 to 2016 Hundreds of thousands of Taiwan.
TCL is now starting to further expand its presence in Argentina, where it is learned that foreign brands account for a relatively small market share compared to local brands due to trade protectionism in Argentina and the need for large foreign tax levies on foreign consumer electronics and home appliance brands Prior to TCL just doing business through the RV, RV TCL brand is the sole agent in Argentina, after the establishment of the joint venture TCL will get more say.
In the localization, TCL has become Argentina's most popular team Rosario team's partners, both sides will be launched in December this year, a series of sponsorship cooperation.
Fight overseas market
Wang Yi, chief financial officer of TCL Multimedia, said: "Argentina is an important market in South America and has a huge potential for growth in the local consumer electronics and home appliances sectors, with strong brand presence in neighboring countries such as Chile, Peru and Colombia Having an extensive sales and after - sales network in the country, setting up a joint venture will help better rooted the local market, reduce tax costs, enhance our visibility and market share in Argentina, and further increase South American market position.
It is reported that, TCL respectively in Southeast Asia, Europe, North and South America, South America, the Middle East and Africa markets have set up business in Brazil, for example, July 2016, TCL Group and the Brazilian appliance maker SEMP announced the establishment of a joint venture.
'TCL cooperation in Brazil this year, the smooth progress of rapid growth, so I would like to follow in Argentina,' Alhovic network senior analyst Yi Xian Jing told 21st Century Business Herald reporter, 'for now, in the Chinese brand TCL is the highest in Brazil and Hisense is the best in Argentina.
Due to the low market share of overseas brands in the South American market, TCL, Hisense and others have room for growth.Yixian Jing told reporters: 'TCL's television business in the overseas before the OEM, this year hair force to expand the brand, has been set up overseas A lot of branches.
In the first three quarters of this year, TCL sold 16.476 million sets of LCD TVs (including commercial monitors), up 10.5% YoY, benefiting from brand promotion and channel expansion, with sales volume in overseas markets surging 29.5% YoY, with sales in North American markets soaring 97.4% YoY. In September, TCL's market share in North America rose sharply from 10.4% in June to 17.1%, ranking second in the market. According to Yi Xianjing, TCL's success in North America was related to the acquisition of Mexico's Sanyo factory. The price / performance advantage of TCL Sales soared.
At a time when the global TV market is sluggish, domestic manufacturers, including TCL, are expecting more revenue from emerging markets.Hisense acquired Sharp's Mexican factory and acquired Sharp TV's brand rights in the Americas, and later acquired Toshiba's television business. Skyworth acquired the South African brand Sinotec, the German brand Metz, and acquired the Toshiba Indonesia factory for the past three years, gaining the authorization of the Toshiba TV brand in Southeast Asia.
While seeking new overseas markets, color TV companies are still facing the problem of thin profit, high cost.How to raise the brand premium in overseas markets, promote its own brand, the domestic color TV enterprises also need intensive work.