Hisense Or Takes Toshiba TV Business Japanese TV Remains Sony Support

The current TV market has two major news: First, LeTV gave up its acquisition of Vizio, the largest TV company in the United States, for regulatory reasons. Second, Toshiba, a veteran technology company in Japan, has lost revenue or sold television. The Chinese TV brand Hisense is potential. Purchaser. It is not difficult to see from these two news that the global color TV industry is in a critical period of restructuring, and Chinese brands may play a key role in the process of reshaping the pattern.


Toshiba has three good things

Toshiba is not surprised to sell its TV business because it had previously reversed its huge losses. Toshiba has already sold white power, medical equipment and other services, and flash memory is also being sold.

In fact, although Toshiba is a veteran of TV business, the situation in recent years is not optimistic. In April-September 2016, Toshiba’s television business sales decreased by 42% year-on-year to only 27.9 billion yen, and its operating profit and loss was a loss of 10.5 billion yen. At the end of 2015, Toshiba had made an adjustment to the TV business and reduced the shares of the LCD TV sales company that is a joint venture with the TCL Group. The shareholding ratio has dropped from 51% to 30%. The sale is a majority share of Toshiba Video Solutions, a subsidiary of Toshiba Television, and the industry's pass-through may well be the Chinese brand Hisense.

It seems that if Hisense wins Toshiba TV business, there are three advantages:

The first is to improve the quality of technology.

Hisense has always favored color TV's picture quality technology, and has exclusively developed ULED dynamic backlight partition technology, Hiview Pro picture quality engine chips, etc., while Toshiba also has a relatively profound accumulation of quality technology, and it has hundreds of people. The R&D center and two factories have been focusing on the chip and image core algorithms, and have thousands of patents. If Toshiba TV business is purchased, it will obviously help Hisense improve the quality of television.

The second is to expand the global market.

Although Toshiba TV's overall situation is not good, Toshiba TV also enjoys high brand awareness in some countries. For example, in the Japanese market, the Toshiba TV brand still ranks second in popularity, higher than Sony and Panasonic. If Toshiba TV business is purchased, it will greatly benefit Hisense's global market expansion.

The third is to consolidate the top three positions in the world.

Hisense is the largest color TV company in China, and the global market ranks in the top three. However, the gap between Hisense and TCL and Sony is not great, and the distance from Samsung and LG is far away. Therefore, it is the most direct and effective method to consolidate the top three positions in the world, pull distances from Samsung and LG, and expand brand and market share through capital mergers and acquisitions.

For Hisense, on the one hand, it has its own momentum of mergers and acquisitions. On the other hand, it also has the strength of Toshiba. Earlier, Hisense had purchased Sharp Mexico's factory and obtained the right to use the brand in the Americas. It has 12 production bases worldwide, including 3 overseas production bases; it has 12 R&D centers in the world, including 7 overseas R&D centers.

Japanese brand collective decline

It is not the first time that Toshiba sells home appliances including television. In 2016, China’s white goods giant, Midea, purchased 80% of Toshiba’s equity in white goods for 51.4 billion yen, and obtained 40 years of brand authorization. Toshiba continues to sell home appliance business, reflecting the collective decline of Japanese brands in the home appliance industry.

Sharp, as the originator of LCD, has poor TV business. After selling the Mexico factory and brand rights of the Americas to Hisense, Sharp sold the TV business to Hon Hai Group for US$3.8 billion in 2016, officially giving up its own color TV business.

Take another look at Panasonic, another Japanese home appliance brand. According to reports, Panasonic will lay off staff in several departments and may sell liquid crystal panel production lines due to a long period of loss and poor performance. From the financial report, Matsushita expects net profit for fiscal year 2016 to be 130 billion yen, a year-on-year drop of 20%, and sales of 7.35 trillion yen, a decrease of 4%, which will be the lowest level since FY2012. Due to the collapse of the plasma TV business, Panasonic had a net loss of more than 750 billion yen in fiscal year 2011 and fiscal 2012, and was in a slump to the present.

In addition to Toshiba and Sharp, which sells home appliance business to Chinese brands, Changhong has acquired Panasonic’s Sanyo TV business early on. Haier also acquired Sanyo’s white goods business. The pioneer TV brand’s right to use in China has long been sold to the company. Suning.

Judging from the current situation, only the Sony family are struggling to support Japanese brands. Sony's home appliance business has undergone a series of adjustments in recent years and has shown good momentum. The third-quarter earnings report released in early February shows that Sony’s sales in China’s market have increased by 12.8%; in fiscal year 2016, all types of Sony’s electronic businesses were also The plan entered the stage of profitable growth. From the perspective of global share, Sony TV is also among the top five in the world and it is the only Japanese brand among the Top 5 brands.

In spite of Sony's support, the collective decline of Japanese brands has become a trend. Sharp, Panasonic, Sanyo, Toshiba, and Pioneer have all become household names, and their home appliance businesses have been unable to escape the decline in sales performance.

Reshaping Chinese Opportunities

Japanese brands and brands such as Vizio have been sold one after another. It is a rare opportunity for the Chinese home appliance industry. Some people think that Japanese brands sell their non-core businesses and assets, and Chinese companies only buy outdated things. This evaluation is not objective.

First, the use of capital leverage to increase awareness and market penetration is a very economical option. Lenovo purchased IBM’s PC business and accelerated the internationalization of Lenovo. Alcatel’s mobile phone business acquired by TCL still plays an important role. Having won their brands, factories, and technical resources during the downturn of the Japanese brands, they actually found a worthy place. They should not hesitate to take down and make good use of it.

Second, strengthening the capacity building of the terminal market still has great value. TVs, refrigerators, washing machines, mobile phones and other end markets are, from a current point of view, not a low-value area as some people say. Even in the era of intelligent IOT or the era of new technology in which AI is popularized, terminals are the carriers for direct contact and interaction with consumers, and also the carriers for data, services, services, and other contents and applications. The value of terminals has always existed and will become more Made important. Therefore, Chinese brands have strengthened their global capabilities in the terminal market through mergers and acquisitions, which are neither timely nor error-prone.

Finally, M&A has made the foundation of Chinese brand innovation more solid. From the current point of view, in the process of mergers and acquisitions, Chinese brands generally purchase factories, patents, and R&D institutions in addition to brand resources, and revitalizing these resources is conducive to digestion and absorption and re-innovation. Some of these brands appear to be in the hands of Japanese brands. Useless resources may have greater effectiveness in the hands of Chinese brands.

In short, with the development of economic globalization, many industries, including the home appliance industry, are reshaping the competitive landscape. Hisense and Haier should seize this opportunity and play an important role in reshaping the pattern.

Smart TV/box information can focus on smart TV information network sofa butler (http://), China's influential TV box and smart TV website, providing information, communication, TV boxes, smart TVs, smart TV software, etc. Answering questions.

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