Hisense Liu Hongxin: Strive to achieve big head overseas in three years

Liu Hongxin expects that there will be no significant growth in the domestic color TV market this year. In particular, as the price of LCD screens declines, the price of LCD TVs will also drop at a faster rate, which will put pressure on all companies. “Overseas markets are undoubtedly a great growth point. The growth rate of our overseas markets must be higher than the domestic growth rate.”

OLED first commercial

Since he was promoted to the position of President of Hisense Group in October last year, Liu Hongxin has faced several questions: First, to look for trends and directions during the transformation period of the color TV industry, consolidate and enhance the position of Hisense; second, promote the internationalization of Hisense; third, diversification and Service added value.

The highlight is the technical route of Hisense TV. Among the domestic color TV giants, Skyworth is steadfastly making OLED TVs, and TCL is pushing quantum dot LCD TVs. On the one hand, Hisense insists on optimising the dynamic backlighting of ULED LCD TVs and on the other hand betting on laser projection TVs.

However, at the China Household Electrical Appliances and Consumer Electronics Expo (AWE) held in Shanghai in March this year, Hisense demonstrated for the first time transparent OLED TVs and mirrored OLED TVs. At the end of last year, Liu Hongxin said that once OLED technology matures, Hisense does not rule out the possibility of introducing OLED TVs within three to five years. The industry speculated whether Hisense's timetable for launching OLED TVs was ahead of schedule.

In response, Liu Hongxin stated that Hisense has never rejected OLED, but it will not vigorously promote technologies and products that are not yet mature in technology and quality. “The transparent OLED and mirror OLED TVs that Hisense exhibited at AWE are commercial products. First, Hisense has technical reserves in this area; secondly, Hisense makes full use of OLED's ultra-thin and transparent features and is first used in the commercial display market.”

"What kind of technology and products Hisense pushes depends on the maturity of the technology, the quality of the product and whether users like it. As long as the technology is mature, the quality of the product is reliable, and the user also likes, Hisense will launch the product." Liu Hongxin stressed that "Hisense Focus on independent innovation.

On the 12th, Hisense released the first 8K LCD TV, namely ULED third-generation products, and said that the integrated display effect is better than the OLED TV, and continues to follow the OLED camp "wrestling wrist." Liu Hongxin disclosed that Hisense 8K TV is cooperating with panel companies. At present, 8K panels come from Taiwan. "Content is also very important, and Hisense will also work with content companies in the future to push 8K content on television."

Overseas is the growth point

Hisense sponsored the European Football Championship this year, showing its ambition to open up overseas markets. Liu Hongxin said that the European Cup is a project where Hisense’s sports marketing strategy lands. Hisense will continue to enhance global brand operation capabilities and promotion capabilities of core technology products in the international market while further consolidating the top three global TV market positions. Realize the goal of the bulk market overseas as soon as possible during the year."

He emphasized that Hisense still adheres to the strategy of "technology-based enterprises." There are many important tasks to be done in international market development. In Liu Hongxin’s “sorting”, “the most important thing is the product, continuously improve the product technology level and release new products to support the expansion of the international market. Second is to select quality customers. Support for local production channels. The third is marketing, including brand promotion. The purpose of sponsoring the European Cup is also to increase the visibility of the industry globally."

At present, Hisense has overseas R&D centers in the United States, Canada, and Germany. After purchasing Sharp's color TV plant in Mexico last year, Hisense has set up overseas production bases in Mexico, the Czech Republic and South Africa. Liu Hongxin said that the recent acquisition of Sharp by Hon Hai does not affect Hisense's continued operation of the Sharp brand color TV business in the North American market.

In the layout of overseas markets, “Firstly, the developed markets in the United States and Europe are the most important strategic markets, so that Hisense can create a world brand. Of course, Hisense has entered earlier markets like Australia and South Africa. We also It will continue to strengthen.” Liu Hongxin said that Hisense’s share of the color TV market in South Africa and Australia has already ranked third.

Make new model reputation

Liu Hongxin does not like the outside world to put Hisense into the camp of traditional TV brands, but in the face of the aggressive offensive of Internet brands, Hisense, which mainly relies on hardware revenue, has to actively explore new business models. On April 12, Hisense announced that its smart TV Internet business was officially put into commercial operation.

How to increase revenue in service content? In the eyes of Liu Hongxin, the existence of the Internet business model is based on the active users of the scale. Leaving this premise on any model does not make sense.

"Hisense has been transforming the Internet for seven years and is the earliest in the industry." Liu Hongxin said that currently, the number of active users of Hisense's global smart TVs has exceeded 18 million, and by 2018 it will further increase to 45 million.

Based on this, Hisense has a lot of business space for video, education, games, and shopping. At this stage, however, Liu Hongxin and his team are more concerned about the needs and experience of users. They hope that through the Internet, they will establish a good interactive relationship with users and win a good reputation, which in turn will drive the upgrade of Hisense's multimedia industry.

Hisense has promoted NPS (net recommendation, word-of-mouth) management throughout this year, and Liu Hongxin believes that this is also rare in Internet companies. “We are more concerned with user experience than ever before. This is a long-term plan for business operations. One of the important goals of operating income is to test whether operations are accepted by users and industries, and it is also a measure of user experience.”

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