TCL Looks To Change Direction As TV Sales Slump
Overnight the Company announced a shift in its global marketing focus in an effort to try and capitalize on what they are describing as “the new Internet economy.”
The group transformation of TCL Multimedia Technology, TCL Communications and parent company TCL Corporation will see the companies begin to execute what they are calling a “double plus” strategy that includes “intelligence + Internet” and “products + services” as main marketing directives, while “shifting from the previous product-oriented focus to a user-oriented focus.”
TCL defined “intelligence + Internet” as the evolution of smart products and services tied to the Internet. The company said it will offer “ultimate experiences” while driving a major transformation of the company in the development of technologies and operations.
“Products + services” refers to a new innovative business model in the Internet era, which will transform the corporate level business model while “eventually establishing an open, collaborative and integrated business process and organizational systems serving needs of the strategic transformation,” the company said.
TCL said its five-year target aims at becoming a major global manufacturer of smart terminal devices, seeking to become a global top three brand in smart TVs and smartphones, accumulating a clientele of up to 100 million household users and 100 million mobile users, and deriving 50 percent of its profit from each of the product and services areas, respectively.
The Company has said that TV sales are falling. “It is evident that the television industry is becoming intelligence-oriented,” the company said of its new mission statement. “Competition in the industry shifts from pure product features to positioning of the products in an intelligent ecosystem.”
TCL Multimedia chairman Li Dongsheng stated, “It is essential that traditional home appliance enterprises undergo a transformation of their business models. Firstly, as far as the market is concerned, saturated demand amidst growing production capacity intensified the price competition among enterprises. Secondly, with the industry, maturity of basic functions of hardware created a gridlock to development of the consumer electronics industry due to homogeneity of product functionalities. Thirdly, faced with cross-industry competition from Internet enterprises, the introduction of new business models has brought about challenges to the profitability of traditional home appliances enterprises.
“In view of the above, TCL will completely abandon traditions by adopting the Internet and establish new business models in an effort to achieve a breakthrough in the strategic transformation in the Internet era,” the chairman said.
The group said it will also pursue intelligent operations based on entertainment. With an emphasis on user experiences, the group will continue to optimize its product portfolios of smart TVs and 4K Ultra HD TVs, building an all-in-one smart terminal product line integrating “platforms, contents, terminals and applications” that provide users with comprehensive entertainment solutions.
The TCL Group will also “proactively kick off development of its game businesses, vigorously develop operating platforms, strengthen its cooperation with Huan TV, Open and TCL Communication under TCL Group and proactively cooperate with third parties in integrating resources.”