TCL Electronics' (1070.HK) Sales Volume Strongly Increases in Brazil and Ranks No.1 in Australia in Q3
At 8.5 million square kilometers and with about 210 million people, Brazil is the world's fifth-largest country by area and the fifth most populous. The major barrier for most global players in the Brazilian market is lacking a right local business partner.
Many companies failed to enter into the Brazilian market, while TCL Electronics (1070.HK) gained a firm foothold and achieved brilliant results. Currently, TCL TV has entered all the main distribution channels of the market, including Via Varejo, Magazine Luiza, and etc., which covers more than half of the market. In addition, the Company has also cooperated with important local online distribution channels such as B2W. TCL Electronics' TV products are mainly positioned as mid-to-high end and the ranking rose from No.6 in 2016 to No. 5 in the first three quarters of this year in terms of sales volume. Sales volume of TCL TV in Brazil increased by 31.8% year-on-year in the first half of 2019 and 47% in the first three quarters of 2019.
The achievement in the Brazilian market is closely related to TCL Electronics' two strategies.
Before 2016, TCL was an original equipment manufacturer (OEM) in the Brazilian market. Then TCL Electronics quickly seized market opportunities in Brazil and South America. In July 2016, TCL Electronics announced a strategic cooperation with SEMP, a leading Brazilian home appliance brand. They jointly invested USD60 million and established SEMP TCL, a joint venture company. SEMP TCL started operating on August 1 in the same year. At that time, TCL, as a TV leader, ranked top three in terms of global LCD TV sales volume, and SEMP was one of the largest home appliance companies in Brazil, their cooperation is a strong alliance. SEMP has more than 8,000 sales outlets and about 400 after-sales service outlets in Brazil. Therefore, it was a good move for TCL to penetrate into the Brazilian market.
TCL Electronics then quickly increased its market share via sports marketing around football in South America, such as CONMEBOL Copa America 2019, a five-year sponsorship contract with the Brazilian national team, appointing Neymar as Global Brand Ambassador, and Rodrygo, who just joined Real Madrid CF. Moreover, TCL added two top surfers and Club Atletico Rosario Central in Argentina in its sponsorship list this year.
With TCL's advanced technology and outstanding marketing strategies, as well as SEMP's mature sales channels, the joint venture company has built a business role model of international brands with localized operation in just three years' time. In July 2019, TCL launched the first 8K TV in Brazil. What's more, ISTOÉ DINHEIRO, a Brazilian famous business magazine, recently has announced the winners of the 16th "Best China Investment Management Award", and SEMP TCL was selected as one of the top three companies in the field of "Electrical Appliances, Telecommunications Machinery and Components".
In addition to the sports marketing in Brazil, TCL Electronics also employs sports marketing in Australia to build strong brand awareness. TCL has sponsored the Melbourne Cup Carnival for 15 consecutive years. From the first year as TCL entered Australia, TCL has become the official partner of Melbourne Cup. Meanwhile, TCL also sponsored Melbourne Victory Football Club, champion of Australian Hyundai A-League for four consecutive years.
Australia is the sixth-largest country, which ranks after Brazil by area. Although it only has population of 25 million, according to IMF statistics, Australia's GDP per capita in 2018 was as high as USD56,352, ranking No.10 in the world. It has high demands for large-screen TVs and high-end products, like 65-inch and 75-inch TVs, which shows that Australia is a market with immense growth potential.
TCL Electronics entered Australian market since 2005, and now the Company has entered various important distribution channels, such as JB HI-FI, The Good Guy, Harvey Norman, and etc. In the third quarter of 2019, TCL brand TVs hit a new high and ranked No.1 with a market share of 19% in terms of sales volume, referring to third-party data. The success was mainly due to deep market penetration, strong branding, continuous improvement in the competitiveness of TV products, comprehensive sales system and supply chain management, tight partnerships with local distribution channels as well as an experienced local team.
Even in the southern hemisphere, TCL Electronics is able to adapt to the culture differences by adopting the most suitable localized marketing strategies. The Company's market share increased rapidly and hit new record high through sports marketing and entering important distribution channels in local markets, which will further enhance brand awareness and influence.
29/11/2019 Dissemination of a Marketing Press Release, transmitted by EQS Group.
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