THINKING BEYOND BORDERS: HOW HISENSE IS BUILDING A BRAND FOR THE FUTURE (2024)

On July 14th, Berlin's Olympiastadion staged the final of UEFA EURO 2024™, the culmination of a month-long tournament. While the footballers vying for the trophy are among Europe's most skilled, playing a supporting but no less key role are innovative technologies¹ backed by global brands that contribute to the event's success. In the EURO 2024™ tournament, a familiar Chinese brand, Hisense, appeared on the pitchside for the third time as the Official Partner of UEFA EURO 2024™ and UEFA's first Official VAR screen provider.²

To coincide with the EURO 2024™ final, Hisense hosted its Global Partner Conference in Berlin in the same month. Speaking to partners at the event, Fisher Yu, president of Hisense Group, highlighted how the brand’s strong presence at the tournament is a testament to its efforts over the years to build a strong brand, particularly by upgrading its technology and partnerships.

A successful future driven by sports marketing

Over 16 years, Hisense has carved a name for itself with a ubiquitous presence in global sports through key partnerships with organisations such as UEFA, Formula 1 and the National Basketball Association (NBA). The company has already sponsored the UEFA European Championship and FIFA World Cup™ twice.

Its partnership with UEFA at the EURO 2024™ tournament is its third, and marks a successful marrying of marketing endeavours with technological advancements. Its strategy has also subtly shifted beyond brand association to deepening its connection with sports fans and teams.

The sponsorship of world-class sports events extends beyond marketing. As a platform, it gives Hisense added impetus to enhance aspects from talent and research and development (R&D), to manufacturing and management, ultimately propelling the company towards becoming a globally known enterprise.

"We are propelling the entire home appliances industry to transition from individual products to scenario-driven services by upgrading our scenario-based product planning, R&D and marketing strategies."

- Fisher Yu, president of Hisense group

Its involvement in sport has enabled Hisense to expand brand awareness through greater visibility at some of the world's most-watched cultural events. This reflects in its sales—Hisense says its annual overseas revenue has increased by three and a half times between 2016 and 2023, from $3.5 billion to $12 billion.

Corporate China goes global

Hisense is not the first Chinese company to bank on the global language of sports to build international recognition, though it was an early mover. As China has experienced rapid economic growth over the past five decades, many of its home-grown brands have embarked on globalisation strategies, particularly in Belt and Road partner countries.³ In the first quarter of 2024 alone, Chinese companies invested $33.9 billion overseas.⁴

In the first quarter of 2024 alone, Chinese companies invested $33.9 billion overseas

The changes in the global economic situation and the emergence of more uncertainty in the present and future have pushed Chinese enterprises to globalise. Expanding abroad affords Chinese companies like Hisense an opportunity to not only tap into new customer bases, but also draw learnings from leading enterprises that can motivate its R&D.

These trends are especially noticeable in China's home appliances industry, which has grown in sync with its economy and disposable incomes. However, as growth has tapered, Chinese companies in this space have sought to grow their brands in new markets where growth still exists.

A globalisation strategy is not without its challenges, however. These range from a high degree of competition from existing players, to cultural differences and low brand recognition. To overcome them, Hisense has engaged in a multi-pronged strategy that has transformed it from a small Chinese original equipment manufacturer (OEM) into a recognisable, global company partnering some of the world's biggest brands.

Across the world, Hisense now has 26 R&D centres, 34 industrial parks and manufacturing bases, and 140,000 stores. The company has also established partnerships with 3,400 suppliers and nearly 65,000 clients and partners worldwide.

Raising the technological bar

While brand building and sports marketing have been key to Hisense's globalisation strategy, technological innovation remains at the heart of its core home appliances business.

It has reorganised its corporate structure to be more responsive to customers' needs, creating a dedicated consumer-facing unit. It has also put innovation at the forefront of product design. "Hisense is now updating its strategy, covering brand, scenarios, industrial structure and globalisation," Mr Yu says of the company’s approach to pushing boundaries in an ever-changing world.

With the home appliances sector experiencing a transformative moment, thanks to the growing popularity of "smart home" products, appliance makers are increasingly embedding cutting-edge technologies such as artificial intelligence (AI) and sensors in their products to bring more personalised and immersive experiences to customers.

"We are propelling the entire home appliances industry to transition from individual products to scenario-driven services by upgrading our scenario-based product planning, R&D and marketing strategies," says Mr Yu.

Recognising a new growth opportunity in home appliances, Hisense is looking at capitalising on the technology to help alleviate users' pain points. "Leveraging the strengths of AI, Hisense released its self-developed large language AI model, Hi-Star," says Mr Yu. "Worldwide, we've teamed up with big players to customise AI models."

The company has made significant improvements and breakthroughs in areas like voice assistant, AI customer services, accessibility and personalised interaction, among others.

The next evolutionary phase

Eight years ago, Hisense sponsored the UEFA EURO 2016™ for the first time with only two of its brands displayed on pitchside billboards. This year, Hisense showcased eight brands and 11 categories at the tournament, and a new pitchside slogan, "Hisense, More Than A Brand".

A nod to its expanding brand portfolio, this new slogan marks a shift from its earlier pitchside slogans, like "China’s No. 1, World’s No. 2" at the FIFA World Cup Qatar in 2022, and reflects its growing reputation as a multi-brand company behind some of the names audiences see at the EURO 2024™ tournaments—Toshiba TV, gorenje and ASKO, among others.

Behind this growth is a laser focus on understanding local consumer needs and ensuring a stable product supply. To achieve this, Hisense has established six regional operations centres globally, with each dedicated to enhancing local manufacturing, R&D, and talent cultivation.

This has reaped rewards for Hisense. According to Omdia, Hisense ranked second globally for TV shipments and first in 100" TVs in 2023. The company says it came in second globally again in the first quarter of 2024. Additionally, its TV ranks among the top three in terms of market share in Germany, Italy and the UK.

Hisense also leads in B2B industries like car displays, smart transportation, precision medicine and optical communication. Sanden Corporation, one of its brands, ranks second in the world in sales of air conditioning compressors. Its all-in-one products and system solutions, including smart offices and smart displays, are available in more than 40 countries and regions.

Not resting on its laurels, Hisense is already looking towards the future. Coinciding with its 55th anniversary this year, Hisense has embarked on a brand upgrade to better communicate the company's values and mission as a trusted global household name.

Its aim is to reframe the company's image from one that is merely reliable, to one that is of the highest quality and which puts users at the centre of product development. This is part of a much broader strategy that will see the company retool every aspect of the business, from its technology to its operational model.

As Mr Yu told partners at the Berlin event, continuing to upgrade its products is mission-critical to Hisense's continued drive to become a world-class company, one "more responsive to the needs of our customers". This, he stressed, will be the solid foundation on which the brand stands as it poises for long-term growth and a win-win future.

• ¹https://www.uefa.com/news-media/news/028d-1ada99d5c45d-aa9eb88fcf73-1000--football-technologies-at-uefa-euro-2024/
• ²https://www.prnewswire.com/il/news-releases/hisense-showcases-technological-prowess-and-global-growth-at-uefa-euro-2024-302174076.html
• ³https://www.bbc.com/news/world-asia-china-67120726
• ⁴https://www.businesstimes.com.sg/international/global/china-firms-are-investing-abroad-fastest-pace-eight-years

Article Source:
https://impact.economist.com/projects/building-a-global-brand-with-display-technology/
Produced by EI Studios for Hisense