Gearbest Tech
In recent years, Hisense has shown strong growth amid the ups and downs of the color TV industry.
On July 14, Hisense Video released its 2023 H1 performance forecast. Hisense Video expects operating income to be 23.519 billion to 24.923 billion yuan, and net profit attributable to shareholders of listed companies to be 1.022 billion to 1.081 billion, with net profit increasing 72.16% year-on-year. to 82.10%.
The two major indicators of revenue and net profit have continued to achieve outstanding results.It proves that Hisense's growth is not a short-term effect, but has established a stable and healthy growth channel.
Especially in the context of the overall sluggishness of the industry, Hisense's breakthrough may serve as a window to observe the transformation period of the color TV industry. Only by creating a prosperous and orderly hardware ecosystem and facing the changing viewing needs of users can we see the future direction of the industry.
The sluggish color TV market and Hisense buck the trend
The saturation of the home appliance market is a fact that companies must face. In 2019, China's home appliance retail sales declined for the first time in seven years. The total national sales that year was 891 billion yuan, a year-on-year decrease of 3.82% – this is a clear market signal. Then the market began to continue to decline. In 2022, domestic retail sales of household appliances fell again by 9.5 percentage points year-on-year to only 730.72 billion yuan.
The growth of the home appliance industry is sluggish, and color TVs are facing even greater pressure.
Color TV is almost one of the necessary home appliances in the family, but the demand has been fully met. Data shows that from 2013 to 2021, the number of color TV sets owned by 100 households in my country increased from 116.1 units to 121.8 units, of which the number owned by 100 urban households was in About 150 units, which means,The competition for market share of color TVs will be dominated by competition for existing products and upgrades.
Under this main theme, the color TV market has not found a suitable growth channel. Data from AVC shows that the retail volume of China's color TV market in 2022 will be 36.34 million units, a year-on-year decrease of 5.2%, and the retail sales will be 112.3 billion yuan, a year-on-year decrease of 12.9%.
In addition, new consumer groups have put forward newer requirements for products, soaring raw material prices and unfavorable domestic real estate policies are all unfavorable factors that Hisense and its Chinese home appliance peers have to face.
In this context, the fight between brands is becoming more and more intense. It is not easy to occupy a place in the industry competition landscape, let alone rise against the trend, but Hisense has done it.
According to data, Hisense's global sales of smart display terminals in 2022 were 25.22 million units, a year-on-year increase of 18.22%, in sharp contrast to the industry's -5.2% growth rate. It is precisely because of its rapid growth that Hisense will rank second in the world in TV shipments in 2022. And this growth is continuing. In the first quarter of this year, Overrivo's data shows that Hisense's global shipments reached 6.2 million units, a year-on-year increase of 23.5%, and the industry growth rate during the same period was -6.3%.
Hisense's performance exceeded expectations, and the capital market also responded positively. After the market opened on July 14, Hisense Video jumped short and opened low, but reached a maximum of 23.09 yuan, and then fell into a high-level shock adjustment. In fact, Hisense Video has started its rise since September last year. As of July 14, its stock price rose from the initial 11.13 yuan to 23.09 yuan. The cumulative increase exceeded 100%, driving the market value from 145 yuan to 145 yuan. billion soared to nearly 30 billion yuan; the increase far exceeded the 29.5% increase of the CITIC Home Appliances Index during the same period, and far behind the 8.6% increase of the CSI 300 Index.
The logic of Hisense's stock price growth is actually not difficult to understand. For most growth stocks, they need to give investors a clear future. The greater the stock price increase, the more high-speed growth expectations are needed to provide for this tomorrow that has not yet come. A little more support. But Hisense is different. In less than a year, Hisense Video's stock price has increased by 100%. It is not so much that the performance that bucked the trend has driven the stock price rise, but that the future described by Hisense is increasingly in the eyes of investors. clear.
ULED X+ laser drives forward the two major bases, Hisense charts a new direction for the industry
Nowadays, competition in the color TV industry is becoming increasingly fierce. If you want to occupy a place in such a competitive landscape, you must not only have excellent product quality to meet the increasing personalized needs of users, but also need to establish unique advantages in technology to form a high threshold. , build your own moat.
Hisense, which pays attention to technology, has naturally noticed this and started to make plans in this area very early. Now it has formed a unique label in the color TV industry with its ULED X and laser display technology.
Hisense's independently developed ULED X display technology is one of the technical barriers that distinguish Hisense from other brands.It is reported that in 2023, Hisense ULED The picture quality breaks the ceiling of picture quality in the LCD industry.
In addition to ULED X, laser technology is another trump card of Hisense.The full-color laser TV independently developed by Hisense uses red, green, and blue (RGB) lasers as the light source, without phosphor and color wheel supplements. The color reproduction is accurate and the colors are true and natural. Full-color laser TV solves the problem of high-fidelity image reproduction. It is currently the only display technology that can fully meet the ultra-high-definition display BT.2020 international standard, making its color reproduction and saturation better than traditional TVs. At the same time, the diffuse reflection imaging method is also It is more comfortable and eye-friendly. It is precisely with these characteristics that laser TV covers a wide range of users’ viewing needs.
It is also the differentiated advantage formed in display technology that allows Hisense to firmly grasp the initiative in the battle for “high-end large screens” in the color TV industry.According to Aowei Cloud data, in 2022, in the 75+ color TV market, Hisense TVs will account for 28.67% of the volume, 3.86 percentage points ahead of the second place; in the 85+ color TV market, Hisense TVs will have a cumulative sales share of 32.14%. Leading the second place by 6.68 percentage points.
Hisense's long-term independent research and development strategy has formed a strong technological advantage through continuous heavy investment in the past, helping it consolidate its high-end brand recognition. Nowadays, display technology has become Hisense's core competitiveness, and it has built a clear differentiation selling point from other brands. As its market size steadily advances, Hisense has sent a clear signal to the outside world:Only with self-developed technology as the cornerstone can we move towards a broader future.
With a multi-brand system in place, Hisense’s value increment is being released
In the early days of the development of the color TV industry, the focus was on high investment, high production, and the ability to quickly seize the market. Now the stage of barbaric growth has passed. When the industry changes from quantity to quality, for color TV companies, brand potential is irreplaceable. Sex becomes more and more important. Therefore, even if there is technical support, companies still need to have a multi-faceted brand layout to achieve coverage of more price segments in order to maximize its value.
On the basis of possessing high-end technology, how to achieve a comprehensive brand layout has become the secret of success that Hisense can give other companies. At present, Hisense has formed a laddered brand structure of Toshiba, Hisense and Vidda, fully covering the needs of different levels of the market in the high, medium and cost-effective markets.
In fact, the multi-brand strategy is not uncommon in the color TV industry, but why is Vidda the only one able to achieve a breakthrough? Mainly due to two points:First, Hisense’s self-developed advantages in display technology have reduced the cost of technology, which has provided prerequisites for Vidda’s rapid rise.
Second, clear brand positioning.Vidda takes “technological fun” as its brand positioning, which is more in line with young people's consumption concepts, and it does implement “play” on the product side. For example, the “Music TV” it launched not only highlights the exploration of the brand itself It also transforms the relationship between users and products from the traditional “use” to “play”.
With the blessing of ULED display technology, Vidda's products have better display effects than products of the same price range. The huge experience gap, combined with the brand positioning that is closer to consumer groups, has made Vidda explode rapidly.
According to Aowei Cloud data, Hisense online sales increased by 34% year-on-year in 2022, among which Vidda brand sales increased by 94% year-on-year, accounting for 35% of Hisense series online sales; and according to the company’s announcement, the Vidda brand’s 2022 The year-on-year sales growth rate is as high as 99%.
For Hisense, the stepped brand strategy avoids confusion among mass consumers about brand positioning due to the wide range of product price ranges, and at the same time strengthens Hisense's own high-end brand image. The multi-brand strategy with display technology as the core not only allows Hisense to build a product matrix covering all price segments, but also allows Hisense's brand value to continue to empower sub-brands and continuously release the brand value transformation power.
Write at the end:By 2023, the era of horse racing and extensive growth is gone forever. In the context of market saturation and hard-to-find incremental growth, color TV manufacturers want to break through simply by extending to the upstream and downstream of the industry chain, heading towards Explore display technology, chips, semiconductors and other fields to gain technological leadership and cost advantages, thereby further seizing market share.From this perspective, Hisense has already taken advantage of its forward-looking strategic layout and continuous investment.Now, in the second half of the competition in the color TV industry, Hisense is clearly ready to write a new chapter for the next “new world”.
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