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Hisense International., Marketing Dept 9 th Issue - 1 -
Hisense International., Marketing Dept 9th Issue
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Hisense International., Marketing Dept 9th Issue
Contents Focus .............................................................. 3
Hisense & Whirlpool Air Conditioning Global Strategic Cooperation Signing Ceremony................................................................................................................3 Speech on the Ceremory from Timothy A Kee, VP of Whirlpool Global Air Treatment ................................................................................................................4
News Express................................................. 5
The sales of inverter air conditioner have ranked first in China for 12 consecutive years. .......................................................................................................................5 Hisense flat-panel television is well received by the consumers............................6 White Goods Global Brand Share in 2008 .............................................................7 Welcome to China Import and Export Fair 105......................................................8
Technology Time ........................................... 9
Top Chinese Flat Panel HDTV Manufacturer Hisense to Feature SRS TruSurround XT......................................................................................................9 China Telecom, Hisense Join Hands.......................................................................9
Communication Platform .......................... 10
“I am a mouthpiece，glue & bridge for Hisense”................................................10
Culture Corner............................................ 12
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Hisense International., Marketing Dept 9th Issue
Focus
Hisense & Whirlpool Air Conditioning Global Strategic
Cooperation Signing Ceremony
March 25th: Timothy A Kee, VP of Whirlpool Global Air Treatment, and Dr. Lin Lan, VP of Hisense, signed a global air treatment contract in Guangdong that will lead to a strategic cooperation between the two companies. The cooperation is for the development and manufacturing of more high-tech and high-quality products for the global market. This is another significant strategic alliance that has been struck since the joint venture was signed between Hisense and Whirlpool last April. This latest strategic partnership will mark a growing alliance between the two companies and will allow for further expansion into the home appliances market worldwide. It will also improve the structure of the Chinese appliances industry and prompt the research, development, and manufacturing ability of Chinese companies to reach international levels.
Concerning the expanding relationship between the two companies, Timothy A. Kee, VP of Whirlpool, said, “The cooperation and relationship between Whirlpool and Hisense-Kelon started back in 1998. In 2008, there was a significant increment in volume and business achievements in many regions around the world. The years of working together has built a solid foundation for this strategic alliance. We are seeking a long-term global
strategic partnership that will yield excellence in every aspect from resource management to operational efficiency and cost reduction, in order to weather the challenges of the current global economic crisis. Hisense-Kelon is our first choice for partnership with its leading edge technology and strong manufacturing capability. Hisense is one of the most competitive and fastest growing manufacturers for household appliances with commitment to ‘Creating Perfection and Serving Society’ with its leading edge technology in inverter and energy-saving. We believe that the partnership will strengthen our leverage to ensure a win-win solution in the midst of the global economic crisis.” Lin Lan, VP of Hisense, responded by saying, “Whirlpool is the world's largest home appliance
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Hisense International., Marketing Dept 9th Issue
company both in manufacturing and distribution of household electrical appliances with a long history and proven track record of nearly a hundred years. Its products are built on the philosophy of ‘innovation, leading technology, and excellent product quality’, which is aligned to Hisense’s philosophies in product and technology. Hisense will be able to learn from Whirlpool in areas of operational and managerial excellence. This partnership will further integrate and optimize resources from both companies in engineering, technology and manufacturing to bring forth the next level of highly innovative products and world-class services to the consumer. We believe that the partnership will stimulate vast business growth in the overseas market and will also consummate the strategic & planning layout for Hisense in overseas markets. This partnership, with a win-win approach, will create speed in the research and development of new products and enhance the manufacturing capability of Hisense.”
Speech on the Ceremory from Timothy A Kee, VP of
Whirlpool Global Air Treatment
“Thank you, Dr. Lin for your outstanding summary of our partnership and close relationship. I would also like to say, ‘Good afternoon,’ to the joint Whirlpool and Hisense teams, and ‘Good afternoon’ to all of you who are present to witness this contract signing ceremony between Whirlpool and Hisense-Kelon.” “Today is the next step of our ten year journey, which started ten years ago as a simple OEM relationship that has now grown into a key strategic partnership. The many years of working closely together has created a solid foundation for this strategic alliance. Over these years we have built a long-term global strategic partnership that has yielded excellence in every aspect from resource management to operational efficiency to continuous cost reductions. These actions will continue to be our priorities in order for both parties to weather the challenges within the current global economic crisis.” “Clearly, Hisense-Kelon is an outstanding partner with leading edge technology and a strong manufacturing capability. Likewise, Hisense-Kelon is one of the most competitive and fastest growing manufacturers for household appliances with a true commitment to ‘Creating Perfection and Serving Society’. We sincerely believe that this partnership is one of the primary catalysts for Whirlpool’s growth in the global air treatment business by sourcing outstanding products that meet our brand promises for consumers globally. The truly unique aspect of this partnership is the open dialogue and communication at all levels within both organizations, which allows for creation of new innovations, new products, and new approaches.” “Lastly I would like to specifically recognize the following three people whose vision and understanding have made today’s event possible. Dr. Lin Lan, Dr. Zhou, and Mr. John Huang have been outstanding supporters of Whirlpool throughout the years that we have been working together. Their patience and understanding have been the keys to the maintenance and growth of our relationship. I sincerely look forward to the next ten years of friendship and cooperation
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Hisense International., Marketing Dept 9th Issue
between Whirlpool and Hisense-Kelon. Together we will succeed and prosper.”
News Express
The sales of inverter air conditioner have ranked first
in China for 12 consecutive years.
Since January this year, the sales of Hisense inverter air-conditioner have obtained a tremendous growth in the Chinese market, and the recovering sales amount has hit a record high over the last 12 years. According to the statistical data provided by Zhong Yi Kang, in 2008 the market share of Hisense inverter air conditioner continues to rank first, and has been maintaining this position for 12 years in succession.
For the sharp increase of the sales of Hisense inverter air conditioner, the veterans in this industry did not express any surprise. “Since the development of China’s first inverter air conditioner in 1997, Hisense has been innovating constantly and has grasped the core technology of the
inverter air conditioner. Under the situation that the inverter air conditioner is increasingly becoming the hot spot in the market, the technological superiority and brand advantage accumulated by Hisense over the years has resulted in a sharp increase in sales.”
Experts believe that along with its ability to save energy and provide ultimate comfort, the reason for the sharp increase of Hisense inverter air conditioner sales is that Hisense has always adhered to the development strategy of “Establishing Enterprise by Technology” with the obvious advantages in the competitiveness of products.
Hisense Inverter Products are better than its competitors on the index, such as in the area of environmental-friendliness. The speed of refrigeration and heating of the Hisense SuiXiang DC inverter air conditioner, which was just recently introduced to the market, is faster than an
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Hisense International., Marketing Dept 9th Issue
ordinary air conditioner by 300%, and its hourly minimum power consumption is only 180W (less than 25% of the hourly power consumption of the entry-level air conditioner with the same specification in the current market).
Industry experts point out that Hisense being in the inverter air conditioner market for 12 years not only establishes a well-known and respected brand as the “inverter expert”, but also leads the development and progression of the Chinese air-conditioning industry. Experts conclude that global sales of inverter air conditioners will experience drastic growth and Hisense will be leading the charge in efficiency, innovation, and market share.
Hisense flat-panel television is well received by the
consumers
On March 13, in the “Reliability Standard Industrial Code Proseminar for Flat-Panel Television Products”, the <Investigation and Research Report on the Satisfaction of Urban Consumers on Chinese Flat-Panel Television> issued by China Electronics Chamber of Commerce, the Office of Consumer Electronics Products, reads:
“In the satisfaction evaluation on the use and after-sale service of flat-panel television by urban residents households, Hisense flat-panel television obtained the highest satisfaction from customers, which is the second time that Hisense obtained the appraisal of the highest satisfaction from the customers following the obtainment in 2007.”
Since 2005, China Electronic Chamber of Commerce has carried out a continuous investigation and research on the purchase and use of flat-panel televisions by Chinese urban consumers. Since 2007, the consumption of flat panel television entered into the stage of scale growth. From the statistical data of the investigation and research on 15000 household consumer samples which have the flat-panel television for the past two years, we reach a conclusion that: Hisense flat-panel television has the highest penetration rate in urban resident household, so it is widely loved by the broad masses of consumers. After four years of cultivation, the Chinese flat-panel television
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Hisense International., Marketing Dept 9th Issue
market has entered the stage of consumption and popularity of flat-panel televisions since 2008. As of 2008, the total amount of flat-panel television in China has reached 28 million units, and the trend of demand growth will be maintained in 2009, when the sales amount is expected to reach 15 million Units.
With the popularity of flat-panel televisions, the problem on the reliability of product quality has increasingly become an issue. According to < Investigation and Research Report on the Satisfaction of Urban Consumers on Chinese Flat-Panel Television>, it reads:
“Among the households of which the flat-panel television has a fault, seven percent of the consumers have experienced the need for repeated repairs. The proportion of fault in various brands of the flat-panel televisions is two to five percent. Among all the major brands, there is a small proportion of defects found in Hisense flat-panel televisions, which shows stable product performance and higher quality reliability. So, Hisense has become the flat panel television brand trusted by consumers.”
In 2008, Hisense introduced the first type of LED LCD television into the domestic market and became the first enterprise in the world which produces the LED LCD television in mass. With the maturity of LED backlight source liquid crystal technology, the LED television, developed by Hisense independently, is the thinnest one in the world and accomplished a “revolution in energy saving and environmental protection” and a “revolution in color” for LCD television.
Adhering to the faith value of “Create a perfect service to serve the society”, Hisense strictly guarantees product quality, continuously creates new science and technology, and strides forward steadily towards the peak of consumer’s satisfaction appraisal step-by-step.
White Goods Global Brand Share in 2008(Euromonitor)
Company Shares (by Global Brand Owner) - Retail Volume - % breakdown
2001 2002 2003 2004 2005 2006 2007 2008
Air conditioners
Haier Group 4.5 5.3 6.2 6.8 7.7 8.1 9.4 10.8
GD Midea Holding Co Ltd 6.6 7.3 8.3 9.3 10.1 9.3 8.8 8.6
Zhuhai Gree Group Corp 7.8 8.6 9.4 10.1 9.7 8.4 8.4 8.4
LG Group 5.2 5.7 6 6.3 7.2 7.6 8.3 8.4
Panasonic Corp - - - - - - - 3.2
Samsung Corp 2 2 2.1 2.3 2.9 3 3.2 2.9
General Electric Co (GE) 3.1 3.2 3.3 3 3 3 2.7 2.4
Electrolux AB 2.3 2.3 2.4 2.2 1.9 2.2 2.2 2.2
Hisense Electric Co Ltd 0.6 0.7 0.7 0.7 0.6 1.5 2 2.1
Daikin Industries Ltd 2.2 2.2 2.4 2.5 2.2 2 2 2
Carrier Corp 1.5 1.3 1.5 1.8 2.2 2.1 2 2
Whirlpool Corp 1.8 1.8 2 2.1 2.2 2.2 2 1.9
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Hisense International., Marketing Dept 9th Issue
CompanyShares(by Global Brand Owner)Retail Volume % breakdown
2001 2002 2003 2004 2005 2006 2007 2008
Refrigeration
Whirlpool Corp 13.4 13.3 12.8 13 15 13.6 14.8 14
Electrolux AB 11.4 11.4 11 10.8 10.2 10 9.7 9.5
Haier Group 5 5.6 6 6.1 6 6.1 6.9 7.8
Bosch-Siemens 5.9 6 6.1 6 6 6.4 6.5 6.7
LG Group 2.7 3.2 3.7 4.4 5.2 6 6.4 6.6
Hisense LTD 2.5 2.7 2.8 2.8 2.7 3.3 4.3 4.9
Indesit Co SpA - - - - 4.4 4.7 4.7 4.5
Arcelik AS 2.7 2.9 3.1 3.6 4 4.2 4.2 4
Samsung Corp 2.5 2.7 2.8 3 3.3 3.7 3.7 3.9
GE 4.6 4.8 4.7 4.6 4.5 4 3.7 3.4
Welcome to China Import and Export Fair 105
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Hisense International., Marketing Dept 9th Issue
Technology Time
Top Chinese Flat Panel HDTV Manufacturer Hisense to
Feature SRS TruSurround XT
SANTA ANA, Calif., March 26, the industry leader in surround sound, audio, and voice technologies, announced today that the Hisense Electric Company, China's No. 1 flat panel HDTV manufacturer, will release 40 new TV models during 2009 featuring SRS TruSurround XT(R), which produces a thrilling surround sound experience over two built-in stereo speakers.
"SRS is excited about working with a proven,
innovation-driven partner like the Hisense Electric Company as we value the continued emphasis they place on the collective multimedia experience of their products," said Allen H. Gharapetian, Vice President of Marketing for SRS Labs. "This commitment, along
with our ability to customize TruSurround XT to each TV model for optimum performance, enables us to provide an uncompromised entertainment experience without any extra components,
've been able to ensure that ur customers receive the highest quality surround sound experience.
China Telecom, Hisense Join Hands
ith home appliance manufacturer Hisense Group
wires or expenses."
SRS Labs continually pushes the limits of sound engineering to bring an even greater level of value and performance to our flat panel HDTVs," said Zhan Jiajin, Vice President of Hisense Electric Company. "With the physical constraints of today's slimmer HDTVs, achieving an optimal audio experience is a greater challenge. Therefore, by working closely with SRS Labs to custom-tune TruSurround XT on our television's stereo speakers, weo
BEIJING, Mar 13, 2009, China Telecom Corporation Ltd. (SEHK: 0728 and NYSE: CHA) signed a cooperative agreement on March 12, 2009 w
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Hisense International., Marketing Dept 9th Issue
about their strategic partnership, citing a report.
ternet download, energy-saving frequency-conversion air conditioners and frigerators.
ecial orking party to fulfill the agreement and hold senior regular management meetings to exchange formation.
Communication Platform
in sales in the Canada market, with the sales income growing from zero to an astounding 11.727 million USD. Steve was deservedly awarded “Outstanding Marketing
he journalist of “Hisense Times” interviewed Steven to better understand Steven’s story
China Telecom will preferentially procure Hisense CDMA mobile phones, which will be offered to consumers with low-price telecoms services. Other Hisense products on China Telecom's prior purchasing list include high-definition (HD) flat panel TVs, HD broadband media centers supporting Inre
Besides, China Telecom will offer high-quality and low-price telecoms services to Hisense and the Hisense distributors. On the other hand, Hisense has appointed China Telecom as its chief telecoms and information service provider, as an effort to lift its efficiency. The partners will establish a sp
win
“I am a mouthpiece，glue & bridge for Hisense”
—— interview with Steven Cohen, Marketing Manager for Hisense USA
The subsidiary company of Hisense in the US realized sales income of 998 million RMB yuan in 2008, 32.64 percent more than that in 2007, with controllable profit made from deficit to surplus and much better than that in 2007. Steven, who was responsible for the market in North America and was appointed as the marketing manager for the market in Canada, has helped Hisense in building business in Canada. Hisense now has its products in 478 Canadian Tire stores, the biggest household electrical appliance supplier in Canada. As a result, Hisense has achieved a breakthrough
Manager.”
T
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Hisense International., Marketing Dept 9th Issue
and his feelings about opening the North American market to Hisense. Steven：It was a little more than two years ago after meeting Dr. Lin and Hisense at CES (the Consumer Electronics Show) in Las Vegas. Dr. Lin invited me to join him and his team and Hisense. I traveled to China and began my work. Originally I was hired by Hisense Group and
orked in Qingdao for Hisense International. This allowed me to understand the way things work
lieve I am a good mouthpiece” for Hisense. I know many aspects of Hisense and believe in our goals and
or our company here and the bridge between the two cultures. Hisense USA is quite mall and we all wear many hats, as we have many responsibilities. The most important aspect is
nd sell many home appliance and consumer lectronics products to them. Most importantly, we use the Hisense Brand for our TVs in their
ho we are, but I find out at once a retailer travels to China and visits the Hisense Tower, and our factories, we’ve signed
estrating the sales, marketing and operations of our company. I believe the ey to any successful business is in believing in your products and knowing and understanding
veral Hisense TVs and other products. I believe in our quality and communicate with y colleagues in China and the world to ensure we continue to build the best quality product at a
y is a good
wand to fully understand Hisense. I knew very little about Hisense prior to joining the corporation. But, now I be“objectives. I also respect our people and most importantly our quality products. In Hisense USA, I am responsible for the sales and marketing initiatives for Hisense in North America. In addition, I provide legal assistance and work our relationships. I guess you can say I am the glue fscooperation. I was part of the team that went to Canadian Tire and persuaded them to be a strategic partner of Hisense. We now have a great relationship with them aestores. Canadian Tire is the largest retailer in Canada. It’s quite easy to show our products and give presentations explaining wththe deal. They truly know we are the best product by far in the market. Every day we think about new and creative ways to sell our products and most of all retain our customers that we already have established. Lawrence Li does a great job as the conductor in a symphony does, in orchkwhat you are selling. I live with semgood price. We are at a critical juncture during the next several years. Hisense has a great opportunity to increase market share and develop as a top five global electronics company. Although we are in a global challenge given the economy, bad times present good opportunities. There clearlplace for Hisense in the American market. Trust, quality and good pricing are important and I know Hisense will continue to believe in these three important aspects of our business. These are very challenging times, however, as mentioned, we have a great opportunity through hard work and ensuring our products are “second to none” I have strong confidence in Hisense
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Hisense International., Marketing Dept 9th Issue
and Hisense America. You must have confidence and believe in what you are doing. A saying I follow is to: Lead, Follow or get out of the way”. We are the window to our company. We must believe in our products and our mission and goals. We have very good leadership and the “sky is
e limit”. Truly we have challenges due to the global downturn in the economy. However, I’m
e most important aspect is understanding. Within two cultures, there n’t a right and a wrong way. It’s more a matter or ensuring you achieve your goals using the enefits of both cultures.
Culture Corner
ss of water. From time to time, we’ll try each other’s meals if asked to, but for the most art, we enjoy our own dishes that we ordered for ourselves. In other words, hands off the French
Rather, the reasons for such strong ncouragement to continue drinking is merely to break down your defenses and allow everyone to
thsure, with hard work and diligence we will succeed. In fact，being fluent in Chinese clearly helps in my day to day operations. In addition, I lived in China for over seven years and in Asia for over 15 years. Although there clearly are challenges integrating two cultures, thisb
By James Dotson
The dining culture in the United States reflects the individualistic attitude that is shared by most Western nations. For instance, a different meal is ordered by each individual. Therefore, if you have four people in a party, there will be four meals ordered, with each meal laid on the table before each individual. It’s very common for individuals to order their own bottle of beer or their own glapfries! There is a sharp contrast between the dining culture in China and that of the West. The underlying factor of this difference is found in individualism versus group-orientation (collectivism). In China, it’s very rare for an individual to order his or her own meal. All dishes are ordered for the entire party to share buffet-style, and in nicer restaurants, there is a rotatable center so that each dish can be easily accessed by everyone. Bottles of beer or bai jiu (strong Chinese liquor) are certainly not ordered for each individual but several bottles will be ordered for the entire table. Going even further than that, it’s not customary for one to sip from his beer or wine alone. If you’re thirsty, you must raise your glass for the entire table to toast together. A very popular way for the Chinese to toast together is by one standing up, extending his glass, and saying “ganbei” (translation: “dry glass” or “bottoms up”). Everyone will then drink their entire glass of beer or wine. Typically, this is not done only once or twice in an important dinner party, but will be exercised several times until large amounts of affection are shown by everyone for everyone at the table. As a foreigner, it would be easy to feel that they’re just trying to get you drunk so they can watch you make a fool of yourself. This is the Western way of thinking. eget to know the “real you”. There are no evil intentions.
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Hisense International., Marketing Dept 9th Issue
Undoubtedly, as a foreigner, “ganbei” will be one of the first words that you will learn. If you on’t like to drink, you better come up with a good medical excuse. Otherwise, 50 gam bei’s will
rough independent actions but can only be reated through taking actions together. The key word here in China is “group” and the dining ulture here is certainly no exception to the rule.
mmittee ang Ruiji Zhu Shuqin
s Dotson Jessie Li Everyone is welcomed to give contribution. Please send your article or proposals to:
dbe raised in your honor and you better participate in every single one of them. The Chinese believe that no bonds can be created thcc Editorial CoConsultant: Lin Lan John Huang Henry Liu WCatherine Fang Editors: Philip Wang Jame
w
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