TCL Electronics’ Shipments Ranked Global No.2 in 2019 As Globalization Strategy Yields Fruitful Results
HONG KONG, CHINA / ACCESSWIRE / March 2, 2020 / TCL Electronics (01070.HK), the world’s leading smart TV company, has achieved remarkable results again according to the global TV salesreport for 2019 released by Sigmaintell recently. In 2019, TCL Electronics’ overseas markets showed a strong growth by hitting a new high on its sales volume. Overall, the company has sold 32 million sets of TVs during the period, with a year-on-year increase of 12%. In particular, the sales volume of TCL brand TV in overseas markets witnessed a strong growth, recording a surge of 26% to 13.46 million sets, which accounted for more than 65% of the overall sales volume of TCL brand TV. The outstanding performance in overseas markets has consolidated TCL Electronics’ position in the global TV market. What’s more, in terms of global TV shipments in 2019, TCL Electronics’ global market share ranked No.2, with a year-on-year growth of 1.4 percentage points to 13%, which further narrowed the gap from the top player, Samsung, and further widened the gap from LG. The company’s revenue gained in overseas markets grew much faster than competitors, showing the remarkable results of its global production layout.
Global TV Market Share
North American markets are the most important overseas markets to TCL Electronics; the TCL brand TV sales volume maintained a steady year-on-year growth of 14% in 2019. According to NPD’s market research report, the market share of TCL brand TV ranked No.2 in the US market in 2019, with a year-on-year rise of 2.8 percentage points and narrowed the gap from the No.1. The market share of TCL brand TV showed a rapid growth between 2016 and 2019, ranking No. 6/4/3/2 respectively in the US market. In addition, TCL Electronics has set up global production capacity layout in advance, with factories in Mexico, Poland, Vietnam, India and etc. Asthe company’s overseas production capacity reaches 15 million sets per year, it is effectively to mitigate the effect brought by China-US trade dispute and guarantee the supplies for overseas markets.
The rapid expanding of TCL Electronics in the European markets and emerging markets are expected to replicate the successful experience of brand and channel development in North Americanmarkets. In the European markets, the sales volume of TCL brand TV increased by 35% year-on-year in 2019, and its year-on-year growth in the Q4 of 2019 even reached 54%. In the emerging markets, the company recorded an increase of sales volume of TCL brand TV by 41% year-on-year in 2019, while the growth rate in the Q4 was 57% year-on-year, experiencing a fast growth similar to the European markets. According to the data of GfK, the company ranked top in terms of sales volumes of TCL brand TV among key markets in 2019, such as Vietnam (No. 4), Thailand (No. 4), Philippines (No. 2), Pakistan (No. 3), France (No. 3), India (No. 5), Myanmar (No. 2), UAE (No. 4) and Australia (No. 3). It is believed that theEuropean and emerging markets will become new engines for TCL Electronics’ overseas business as North American markets do.
Besidesthe TCL brand TV business, TCL Electronics’ ODM business keeps growing. According to DISCIEN, global ODM TV shipment was down by 8.1% year-on-year in 2019. With the supply of the panels from Shenzhen China Star Optoelectronics Technology (CSOT), TCL Electronics has both the advantages of scale and production efficiency. Moreover, due to the good development of customer channels, the company’s ODM TV shipments increased 4% year-on-year to 11.36 million sets in 2019, ranking third in the world, and it was the only player achieved growth. The gap between the company and the top ODM player, TPV, was just 0.5 million sets. TCL Electronics may surpass TPV in 2020 and become the world’s top TV ODM manufacturer.
TCLElectronics is one of the first Chinese TV company that turns from a local giant to an international top player. Its globalization strategy is outstanding. TCL Electronics now ranks second worldwide and in the US market in terms of market share and leads the growth of the concentration rate of the top 3 players in the world. Obviously, the globalization strategy adopted by the company is proved to be correct and successful. The European and emerging markets are replicating the success of the US market with a higher growth rate, and the company’s market share in overseas markets is expected to keep expanding. In addition to the support of integrated industrial chain from CSOT and efficient global marketing strategies, the rapid increase of global brand influence is also the key to the successful global layout deployment of the company. Moreover, TCL brand TV has strong competitive edges on product qualities, cost-effectiveness and Internet content. This can be demonstrated by the company winning the “Readers’ Choice” awards from PCMAG.COM in 2018 and 2019 and building up cooperation with Internet giants like Roku, Google and Netflix. Therefore, it is believed that the company’s development advantages in the global market will be further enhanced. Bolstered by the robust performance in the North American, European and emerging markets, it is expected that the TV sales volume of TCL Electronics will rank global No.1 in the near future.
Hong Kong Zhixin Financial News Agency Limited
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SOURCE: TCL Electronics Holdings Ltd
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