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Hisense Jia Shaoqian: Strive To Achieve 80% Of Independent Brands In Overseas Business

2021/3/26 8:55:00 0

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"In the future, home appliances will not be traditional ones. They should be connected with the whole life. Hisense is now committed to being a smart home, a smart community and a smart city, and has put forward the strategy of smart smart new life. In fact, it is to transform traditional household appliances into new consumption areas and to improve the quality of human life." On March 24, Jia Shaoqian, President of Hisense Group, revealed at the customer conference that with the opening of the smart new life curtain, Hisense will continue to accelerate its goal of 300 billion revenue in 2025.

Under the triple influence of economic downturn, shrinking home appliance market and epidemic situation at home and abroad last year, Hisense Group's revenue was 140.9 billion yuan, an increase of 11.1% year-on-year, and a profit of 9.83 billion yuan, a year-on-year increase of 23.7%. Among them, the overseas revenue was 54.8 billion yuan, with a year-on-year growth of 18.6%, accounting for 39% of the sales revenue of the whole group. More than half of the income of the household appliances sector came from the overseas market.

"More than two-thirds of the income generated overseas is Hisense's own brand. Therefore, in the future, in addition to laying a good product foundation, it is more important for Chinese home appliance enterprises to build up their brands. After the brands are completed, there is still a huge space in the overseas market." Jia Shaoqian told the 21st century economic reporter that in the next three years, the company will take Hisense TV, Rongsheng refrigerator's "pilot plan" and smart home appliances as strategic fulcrums to create dual advantages in the field of black and white electricity.

Continue to expand overseas distribution

Jia Shaoqian believes that Chinese household appliance enterprises have experienced decades of transformation and upgrading, and with the globalization of industrial division of labor, Chinese enterprises have the conditions to go abroad. With the help of overseas M & A, Chinese home appliance enterprises can obtain relatively mature overseas sales channels and advantageous technologies with lower time cost.

On March 1 this year, Hisense appliances (000921. SZ) announced that it planned to take control of Japan's three electric power with a total price of 21.409 billion yen (equivalent to 1.302 billion yuan), so as to accelerate its march into the field of automobile air conditioning. Prior to this, Hisense acquired Toshiba TV in Japan and gorenje, a high-end white home appliance brand in Europe, in 2018.

In Jia Shaoqian's opinion, Hisense's M & a logic is very clear, that is, "it must be strongly related to the group's industries". The acquisition of Toshiba and gorenje has expanded the company's layout in black and white power, while the holding of Japan's three power is another important investment of Hisense in the upstream core technology components.

According to the public information, Japan's three Electric Co., Ltd., which is mainly engaged in automobile compressors and air conditioning systems, is a component supplier of automobile brands such as general motors, Ford and Honda, and its main business is complementary to Hisense related industries.

Wang Lei, Secretary General of China Household Appliances Association, judged that the impact of the new crown pneumonia epidemic in 2021 will continue, the trend of anti globalization will be more obvious, the international trade environment will be more complex and changeable, and the global industrial chain and supply chain will face a major impact. Under the new situation, it is necessary to emphasize the control of the core technology of home appliance manufacturing in the upstream and downstream of the industrial chain.

For example, under the impact of the new pneumonia epidemic, China's home appliance manufacturing system has encountered problems such as sudden interruption of cross-border procurement of spare parts, frequent changes in overseas order rhythm and logistics obstruction. "In addition, in the game with some big home appliance manufacturers in the international market, we have suffered losses in terms of core technology being controlled by people, imperfect patent system construction, and inadequate consideration of production base layout." Wang Lei believes that with the past experience and lessons, the upstream and downstream enterprises of the home appliance industry chain should speed up their efforts to build a complete and complete home appliance industrial chain.

But for enterprises, the integration after M & A is a greater challenge. "After M & A, we need to restructure operations, and we have to recover quickly." Jia Shaoqian told reporters that Toshiba image (TVS), which was acquired in 2018, turned losses into profits in 2019 after 18 months of integration; gorenje, which was acquired in the same year, turned losses into profits after 15 months of integration, and the current business situation is better.

In his view, both domestic and overseas acquisitions, to a large extent, involve the coordination and integration of culture, the effective use of complementary industries, and the good embodiment of efficiency and efficiency. The business logic behind the integration lies in respecting the acquiree, aiming at brand development rather than simply acquiring production capacity.

On March 2 this year, Hisense's second manufacturing base in Mexico started construction, covering an area of more than 380 mu; on March 10, Hisense's first air conditioning production line in Thailand was officially put into operation. Up to now, Hisense has more than 30 manufacturing bases and R & D centers in the world, with a total of 90000 employees. For the next plan, Jia Shaoqian told reporters, "there will certainly be follow-up acquisitions. As long as the opportunity is appropriate and the Industrial Synergy is good, Hisense will certainly seize it."

Accelerate the transformation to the high end of the industry

In recent years, in addition to the home appliance industry, Hisense has also made frequent efforts in emerging industries, making great achievements in the fields of medical treatment, smart city, optical communication, etc. Jia Shaoqian said that Hisense will accelerate its development towards the information industry in the future industrial layout, and Hisense should strive to move forward to the high-end industry or the high-end industry.

Taking the medical industry as an example, Jia Shaoqian believes that "smart medical" can connect medical resources and family environment through cloud exchange. "99% of the diseases we see can be solved remotely. With the help of digital technology, social public resources, community resources and families can be connected together."

The reporter of 21st century economic report noted that at this year's awe exhibition, Hisense specially took out nearly one third of the exhibition area, presenting the layout of smart industry ecology such as smart city, smart medical care and smart community, to show the transformation results of the company's current B2C and B2B industrial pattern to the outside world.

Zhou Houjian, chairman of Hisense, once stressed that "without its own chips, it will always be a second-class manufacturer, and it is impossible to define its own original products.". In recent years, Hisense has invested a lot in chip research and development. In June 2019, Hisense and Qingdao Microelectronics Co., Ltd. jointly invested 500 million yuan to establish Qingdao Xinxin micro company, which was invested in the chip R & D process.

At present, Hisense's image quality chip has been iterated to the fourth generation, and is independently researching and developing the first 8K + 120Hz ultra high definition image quality chip in China. It is expected that the chip will be returned in May this year and will be first applied to the whole machine products, and full-scale production will be realized in November.

For future planning, Hisense electronic information group president Yu Zhitao told reporters that the business related to the screen is worth doing again. "Hisense will continue to focus on display technology innovation, application scenario expansion and cloud service upgrading, continue to implement large display consumption mode, continue to develop display chips, SOC chips and aiot chips. The sales volume of display chips is expected to reach 382 million yuan in 2021, becoming the first in the display chip industry." Yu Zhitao said.

"Transformation is an eternal topic, because the purpose of transformation is to become stronger, and it is necessary to constantly go to the high-end or high-end industries." Jia Shaoqian frankly said that the process of this challenge is huge for Hisense, and the group's main work now is to adjust and upgrade the industrial direction. "In the past, it was manufacturing. Now we should consider making breakthroughs in core technologies, such as core key devices and key materials, so as to expand and widen the entire industrial chain."

Jia Shaoqian hopes that more than 80% of overseas business can be realized in the future, all of which are Hisense's own brands. In addition, in addition to the home appliance sector, some emerging industries, such as medical care, smart education and smart conference system, can also go overseas.

 

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