Abstract

In the early phases of China's flat-panel TV market development, the key for Chinese flat-panel TV vendors were their high cost-performance ratio and distribution channels in China. Hisense managed to stand out among these Chinese brands with its advanced product deployment, prices lower than international brands, as well as superior technology and distribution channels compared to other Chinese vendors. However, as flat-panel TV technology continues to improve and international brands adjust their strategies, the core technological disadvantages of Chinese local brands become more noticeable. Cost and price comparative advantages also wane in the face of fiercer competition.

Hisense aims to maintain its advantages in the Chinese flat-panel TV market. It is currently developing the market through production, products and markets. First, it has invested heavily in production, actively engaging in the production of upstream products. This further lowers costs and safeguards profits. Second, using diverse product positioning and innovation has raised quality. Through a strategy of product differentiation, Hisense is actively competing with other brands. Finally, grasping further development opportunities in the Chinese market will be done by effectively using its sales and distribution advantages as well as brand recognition in China's second- and third-tier markets. Through development of these second- and third-tier markets, Hisense can further increase market share.

Appendix

Research Scope

This report discusses the status of the Chinese flat-panel TV market and the development strategies of Chinese flat-panel TV manufacturer Hisense. Topics explored include the company's production, product development and marketing strategies; factors behind Hisense's advantages in the Chinese flat-panel TV market, and future development strategies.