Hisense steps up globalization pace

Home appliance maker way ahead of peers in overseas market expansion

Hisense Group has become the fastest-growing Chinese electronics and home appliance brand, ranking No 9 on the BrandZ Top 50 Chinese Global Brand Builders 2018 report, as it expands rapidly in overseas markets, with rising global influence and brand awareness.

The report, released by top communication group WPP Plc, global consulting agency Kantar Millward Brown and tech heavyweight Google Inc, identifies and ranks Chinese companies' performance in overseas markets. It combines data from seven countries and more than 395,000 consumers.

BrandZ is the world's largest brand equity database, covering 53 countries and 120,000 brands, and is considered to be one of the most authoritative brand valuation methodology worldwide.

It said Qingdao, Shandong province-based Hisense has performed very well in overseas markets due to the rapid pace at which it is pursuing global expansion and its determination to build brand awareness in the global market.

Hisense sees internationalization as its key expansion strategy. "The future of Hisense is mainly centered on the overseas markets," said Zhou Houjian, the company's chairman, adding it is targeting the middle and high-end market.

Liu Hongxin, president of Hisense Group, announced last year its plan to promote its brand worldwide and to increase its global market share by supporting major sporting events. The company has secured sponsorship deals for the, 2018 FIFA World Cup and other top sporting events.

It announced it will acquire the television business of struggling Japanese conglomerate Toshiba Corp to further expand its overseas business last year.

The company achieved growth in both sales volume and revenue last year. Its total sales revenue increased 10.7 percent in 2017 and overseas revenue increased 21.3 percent. Meanwhile, based on customs statistics, Hisense's export sales of air conditioners and televisions increased by 28.3 percent and 34.4 percent, respectively.

Its sales in Japan increased 79.3 percent year-on-year, while its revenue in the country rose 67.6 percent. In Australia, Hisense was ranked No 1 in terms of market share.

So far, the company has established 17 overseas companies in Europe, the Americas, Africa, the Middle East, Australia and Southeast Asia. It has three overseas production bases to ensure its own supply chain and has 12 research and development institutions worldwide.

In 2015, Hisense purchased Sharp's TV business in Mexico and acquired Sharp America's TV line for the North and South American markets. In Europe, Hisense has built a network covering Spain, Italy, the United Kingdom, France and the Czech Republic, with its regional head office in Germany.

According to market research company IHS, Hisense's TV business ranked No 3 globally in 2016 and has held the No 1 spot for market share in China for 13 consecutive years.