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For Hisense, all eyes are on US profile

By Tan Yingzi in Suwanee, Georgia (China Daily) Updated: 2012-11-24 14:57

For Hisense, all eyes are on US profile

Since 2009, Hisense has been selling its own branded wares directly to North American retailers such as HH Gregg's parent, Gregg Appliances Inc; Best Buy Co; Wal-Mart Stores Inc; Costco Wholesale Corp, for online sales; and Canadian Tire Corp.

It is currently working with the Massachusetts Institute of Technology to develop new products. Hisense is sponsoring research at MIT's Media Lab, sending its own R&D specialists to work with faculty and students on developing smart TVs, including those with 3-D capabilities and voice recognition, and other electronics.

The pursuit of innovation has brought international recognition. In early 2010, Hisense Group Chairman Zhou Houjian became the first Chinese executive to give a keynote speech at the Consumer Electronics Show, among the industry's most important events.

Hisense now is raising its brand awareness in North America.

JoAnne Foist, marketing director for Hisense USA, said the company has positioned itself as "the most preferred Tier 2 brand as a step toward becoming a Tier 1 brand".

Among flat-panel televisions, Tier 2 brands include Panasonic, Sharp and Toshiba while the higher-echelon Tier 1 comprises Samsung, Sony and LG. The company has studied the successes of those rivals, all of which are Asian and all of which were once unknown to American consumers.

Foist, a veteran American marketing professional, joined the Chinese company in 2011. She previously worked as a consultant to a US marketing firm.

She described Hisense strategy as promoting "same features, better price" or "same price, better features".

In her mind, the national origin of a brand isn't that important to US consumers.

"If you ask people where Samsung comes from, most don't know it's from South Korea. So it is not necessary for us to say this is from China and we are a Chinese brand. We talk about features and benefits."

Foist's plans for Hisense include placing ads at sporting events, product tie-ins with popular national TV programs and educating consumers about smart-TV technology.

"Hisense has a clear goal for its global expansion and we have long-term strategy in North America," Li said. "Once we enter a market, we won't ever retreat."

With revenue from its success in China's booming domestic market, Hisense has the resources to aggressively expand abroad.

"Since 2008, the group has invested over $100 million in the North America market," Li said.

In 2011, the US subsidiary had $370 million in sales, 35 percent of which was from its own brand. It's expected to reach $ 580 millions this year, with revenue split 50-50 between own-brand and OEM revenues, according to Li.

Over the next five years, Hisense USA is likely to pursue mergers and acquisitions in North America, especially in the technology of software development and system integration, the executive said. A production plant in Mexico is already under consideration, he added.

tanyingzi@chinadailyusa.com

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