The Middle East and Africa region is the first area for Hisense brand to "go to sea", and it is also one of the overseas markets with the fastest growth of Hisense brand equity. In March this year, Hisense won the "Dubai Quality Global Award", the only Chinese company to receive the award. From "the light of domestic goods" to "world famous brand", what are his successful experiences in his internationalization? On the occasion of the sixth China Brand Day, Ou Yang, general manager of Hisense International Marketing Middle East and Africa, was interviewed by reporters.
In March 2022, Hisense won the "Dubai Quality Global Award" in Dubai.
The Dubai Quality Global Awards began in 1994 to recognize multinational companies that have achieved excellence in their own development and contributed to the development of the local economy. The judging panel consists of government representatives, business leaders with practical experience in quality management systems and expert consultants. During the rigorous judging process, the Dubai Ministry of Economy and Tourism conducted a comprehensive assessment of Hisense. The jury believed that under the influence of the epidemic, winning the "Dubai Quality Global Award" highlights the unremitting efforts of enterprises facing the world and the positive contributions made to the local economic recovery and development.
In Ou Yang's view, the winning of the "Dubai Quality Global Award" means that Chinese home appliance companies represented by Hisense have the strength to keep pace with the global consumer electronics giants in the Middle East market.
It is not easy to get results. In 1996, Hisense chose South Africa as the first stop to go to sea, and in 2013, Hisense co-invested in Hisense Industrial Park with the China-Africa Fund in South Africa, which is the largest home appliance manufacturing plant invested by Chinese companies in Africa.
From 2012 to 2021, Hisense's operating income in the Middle East and Africa region increased from 1.53 billion yuan to 9.37 billion yuan, with an average annual growth rate of 25.9%. Today, Hisense has been pioneering in Africa for more than 20 years, and in this process, Hisense has encountered many difficulties and has also taken many detours.
Speaking of the experience of opening up the African market, Ou Yang said that the first is to pay attention to the needs of the local market. For example, Hisense's sales team found that locals like to look in the mirror when cooking, so Hisense launched the first mirror refrigerator in South Africa; local people like to drink cold drinks, Hisense took the lead in putting ice water boxes in the refrigerator refrigerator, which can quickly make ice and solve the pain points of local consumers.
In March 2022, Hisense unveiled the first flagship store in the Middle East opened in Dubai's famous Dubai Hills Shopping Mall
"We are not only moving domestic products to Africa to sell, but also launching some special features according to the characteristics of African consumers. The cost increase may not be large, but consumer satisfaction has increased significantly. OuYan said.
According to the United Nations Development Programme, well-known brands do not exceed 3% of the total number of global brands, but their global market share exceeds 40%, and sales exceed 50%. In the global value chain system, how can Chinese companies occupy high-end positions?
The "smile curve" theory in industrial economics shows that processing and manufacturing is at the bottom of the value-added curve of the industrial chain, the profit is relatively weak, and if enterprises want to get more added value, they need to extend to both ends - the left is research and development, which belongs to global competition; the right is marketing, mainly local competition. The closer you get to both ends of the "smile curve," the more added value your business gets.
smile curve theory
Ou Yang told reporters that overseas, many Chinese-funded enterprises are still stuck in the stage of doing OEM and earning processing fees, and the key "key" to opening up overseas markets is to go to both ends of the "smile curve" - one hand to grasp research and development and manufacturing, the other hand to grasp brand building. "Overseas, if we don't do the Hisense brand, but do OEM with a bunch of brands, it is not sustainable." Brand is the intangible asset of the enterprise, if there is no brand as a strong support, there is no 'passport' to the international market. ”
The brand is a symbol of national strength, but also a tool for creating wealth, and quality is the "diamond diamond" of brand internationalization. In Hisense's view, "the first owner of the market economy is the consumer." For consumers, corporate credibility and product quality are crucial. ”
Ou Yang said that Hisense attaches great importance to product quality and service, "if your products sell more, more market investment, if the quality problems, it will be a devastating blow." "Through the construction of overseas independent brands, Hisense continues to improve profit margins, continue to increase R&D and market investment, enhance bargaining power through brand building, Hisense has sufficient profits to ensure follow-up research and development and market investment, and constantly develop products that meet consumer needs, so as to continue to expand market share, thus forming a sustainable virtuous circle."
In the face of the journey of globalization, Hisense focuses on the long term and upgrades to the R&D, manufacturing and brand building at both ends of the "smile curve". "Through brand building, it can help Hisense through the economic depression cycle, and only when the brand is recognized by consumers can enterprises achieve sustainable development." OuYan said. (Guangming Network reporter Zhan Zhao)
