Hisense Departs from Atlanta to Become America's Leading Television Brand

According to Global Atlanta's report on October 31st, China's largest TV maker, Hisense, is recovering its dominant position in the US market and starting from Atlanta to further strengthen its business expansion.

When sales in the United States reach billions of dollars, Hisense, a company based in Qingdao, China, and with flat-panel displays and devices, now wants to seek breakthroughs in innovation and quality, instead of continuing to take the tradition. The price advantage.

Jerry Liu, head of Hisense US regional operations (from Argentina to Canada) told Global Atlanta: “Our competitiveness lies in the speed with which we use technology and apply it to our products.”

Hisense and Samsung, LG, and Sony compete with each other in product quality. Mr. Liu said in an interview: "The winning method is to convince consumers, and this method looks effective: The company achieved record sales in the second quarter of this year, which makes us in the market share from the 8th The name has taken a step toward the goal of the third leap." Liu also said: "We know that when information is easily accessible. When people have multiple choices and compare products, our chances come. Our brand Consciousness will gradually develop."

Over the years, Hisense has been a resident guest at the Consumer Electronics Show, where companies showcase their latest and greatest devices. However, this does not result in an increase in market occupation. This Chinese brand occupies 5% of the US TV market, of which 8% of sales are under the Sharp brand name (Hisense was authorized to use Sharp's trademark in 2020).

The continued emphasis on new technologies and the promotion of new markets will help Hisense beat more competitors. Compared to producing televisions bearing other trademarks, Hisense is now pushing its own brand name.

“With the trend of globalization, we will add more factors to the brand, and Hisense will no longer be just a Chinese company but an international company,” Liu said.

Chinese companies will no longer be a symbol of poor quality, he said. Instead, companies need to appear as local localities in all their operations.

At Suwanee, Hisense’s 10-year-old base, a new 5,000-square-foot (about 464-square-meter) showroom was launched in early October of this year. Its interior is equipped with TVs using 3D and 4K technology and a unique 100-inch laser projection, showing Hisense’s sports sponsorship, including the 2018 World Cup and the US Nascar. A wine cooler, air conditioners and commercial coolers were placed in the aisle-shaped device aisles.

Liu said that he was encouraged by his technical elite peers to carry out at least one change in Hisense’s previously boring legal office area, using some “cool” equipment from Silicon Valley.

“Because of our relationship with Google and Amazon, I will go to the west coast of the United States every month. I like their atmosphere. So I will take my staff from the marketing department and look at some of these companies’ worthy places to learn and motivate us. Liu said in an interview.

On a prize sale conference that was designed to raise funds for the recent storms in the United States and the Caribbean, when lots were drawn to determine the winners of air-conditioning and television, Liu said: “We have to do more for the local area. In the past, Most of the company’s internal engineers are Chinese engineers who are critical to the development of high-quality hardware, but they are not suitable to tell the brand story in this new and complex market.I think there is still a disconnect between cultures, so we are in the company’s structure. After a certain restructuring, we let more local talent join in. When you step out of China, you need to think about better use of local talent instead of the one that is always used in Chinese shopping malls. This is different. Department."

Mark Viken, vice president of North American Marketing at Hisense, said that Hisense's philosophy is similar to that of Americans compared to his previous bosses.

“Although Hisense is a global company worth US$16 billion, it is still a start-up company in the United States. This is very interesting,” Mark Viken told Global Atlanta at a large-scale opening.

The metropolis of Atlanta is very suitable for this transition, because the business giants like AT&T and Home Depot have continuously created talents. Some staff recruited from Matsushita Electric assisted Hisense in adopting the highest standards of electronic equipment. Liu said: "Seeking development in the U.S. market means that the product must be able to stand firm in any place in the United States." He also praised the U.S. business environment. “If you have good technology and good products, you can quickly develop your business, and in some countries, it needs the promotion of human relationships. You first have to spend several years building up relationships,” he said. .

His contacts with other companies also helped Hisense's global expansion, selling beverage coolers to PepsiCo, and establishing a joint venture with Johnson Controls in China to establish an industrialized air-conditioning production system. In order to develop its laser TV, which was launched this week at a price of $ 9999 (approximately RMB 66,000), they used chips from Germany's Texas Instruments.

Hisense took over the entire share of Sharp Mexico's plant at a total price of 27.8 million U.S. dollars (about 183 million U.S. dollars). The acquisition of Sharp TV brand use rights is another key step forward. Subsequently, Taiwan’s Hon Hai Technology Group (also known as Foxconn Technology Group) purchased Sharp’s controlling rights for US$3.5 billion (approximately 23.1 trillion yuan). However, Hisense refused to give up the Sharp Group’s North American market. 5 years brand use rights. (Sharp has sued Hisense for accusing it of patent infringement, misleading consumers and creating counterfeit Sharp brand. For these complaints, Hisense totally denied it.)

Liu said that the Mexican plant is extremely useful, and its improved technology has enabled Sharp's productivity to triple in the second year of taking over the plant, and will also increase the R&D speed of local research and development teams and global manufacturing technologies. And applicability.

Liu is not worried about whether the changes in the North American Free Trade Agreement will affect the tax rate so that the supply chain in the United States and Mexico will be disrupted. He said: “I can transfer the factory within a month. I had done this in other countries before.” At the same time, Hisense has become one of the few companies that have developed their own modules to manufacture connected smart TVs. First, Hisense also worked closely with streaming media service providers such as Hulu and Netflix to improve the content experience. Hisense also supplies Roku TVs. The hardware devices in the set-top boxes of these TVs are hardware produced by a leading company in the market.

Liu said: "I think the most successful experience is to cooperate deeply with local companies to make long-term rather than short-term investment plans. This is the difference between us and some other Chinese companies."

In the critical period when the Chinese tech giants hoped to launch wings in the world, Hisense indirectly contributed to Georgia becoming the landing point for Chinese giants. Since 2013, Hisense has opened a Georgia foreign investment firm in its headquarters in Qingdao.

Another large-scale Chinese investment is a $500 million (about 3.3 billion yuan) tire factory at LaGrange, which is planned by another Qingdao company called Sen Unicorn.

Nick Masino, an economic development executive at Partnership Gwinnett, said: “The continued development of Hisense Group in Atlanta shows the competitive advantages of this region. Atlanta’s metropolitan area is the technological center of the southeastern United States, and this is exactly what Hisense was more than a decade ago. The reason for choosing this region to establish its US headquarters is.” He also said in a statement: “We are very pleased that Hisense can be here. In this regard, we look forward to working with them in the next few years to achieve sustained success and development. "(Internship compiling: Li Xueqi reviewer: Li Zongze)

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