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Hisense expands global footprint

By Xie Chuanjiao In Qingdao, Shandong and Fan Feifei in Beijing | China Daily | Updated: 2016-04-28 08:30

The plan is aimed at accelerating the white goods manufacturer's overseas growth

Home appliances maker Hisense Group plans to establish two research and development centers in Japan and Israel this year to accelerate global growth, a top executive said.

"The two new facilities are expected to further boost the company's R&D capability in high-end products and speed up the implementation of long-term product development strategy," Lin Lan, vice-president of the Shandong-based Hisense told a news conference on Tuesday.

Lin said Japan has laid a solid foundation in home appliances manufacturing, research and development, while Israel has a lead in global innovation in many sectors, although the TV market in that country is relatively small.

So far, the company has set up 17 subsidiaries overseas and nine research and development centers in Europe and the United States.

Last year its sales revenue hit 99.016 billion yuan ($15.25 billion). It is ranked the first among China's TV producers in terms of market share for 13 consecutive years. Its global market share reached 5.6 percent, behind South Korea's Samsung Electronics Co and LG Electronics Inc.

Hisense has been eyeing on becoming a global company. Its overseas sales value has risen from $600 million in 2006 to more than $3.2 billion in 2015.

"In the next three to five years, our overseas sales value is expected to reach $4 billion and account for 50 percent of its overall revenue," Lin said.

Last year, 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 and France with its regional head office in Germany.

In January, Hisense became an official UEFA Euro 2016 partner and official partner of 2018 World Cup European qualifying match, the first Chinese sponsor in the 56-year history of UEFA Euro.

The official asking fee for the sponsorship was 50 million euros ($56.57 million), said Cheng Kaixun, vice-president of the company.

The sponsorship will help Hisense advertise its products on an array of venues and products including LED billboards, exhibition halls, display areas for fans and tickets.

China's leading home appliances makers have been stepping up their efforts in globalization for sometime.

Contact the writers at xiechuanjiao@chinadaily.com.cn and fanfeifei@chinadaily.com.cn

Hisense expands global footprint

Customers choose Hisense refrigerators at a shopping mall in Qingdao, Shandong province. CFP

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