According to analysts, in the second quarter of this year, TCL achieved a market share of 12.7% in the global smart TV market, surpassing LG to become the world’s second largest TV company, and nearly 60% of TCL TVs were sold in overseas markets, becoming a real international well-known brand.
In the global TV market, Samsung and LG have been in the top two for a long time. Although Chinese TV companies have maintained a rapid growth momentum, they have been unable to surpass these two mountains.
The Chinese TV industry is one of the earliest domestic industries that defeated international brands in the domestic market. As early as the late 1990s, Chinese TV companies defeated well-known international brands in the domestic market. However, since then, Chinese TV companies have been in for a long time. Trapped in the country.
The result of this is that Chinese TV companies have not been able to get rid of the price war for more than 20 years when they have an advantage in the domestic market, resulting in low profits for TV companies. In 2017, the net profit rate of the Chinese TV industry was as low as 1.5%. In 2009, the entire industry suffered losses. Faced with this situation, TCL actively sought to change.
TCL tried to expand overseas markets through mergers and acquisitions of international TV companies in the early days. It acquired Thomson in 2004, but eventually caused it to lose money due to indigestion. It took years to solve this problem.
After learning from it, TCL was determined to make changes. Later, it decided to enter the upper reaches of the industrial chain and intervene in the LCD panel industry. In 2009, TCL was preparing to establish China Star Optoelectronics. After its establishment, China Star Optoelectronics built a 8.5-generation LCD panel production line that is equivalent to the international advanced level at a high starting point. Later, it prepared the world's most technologically advanced 11-generation LCD panel production line.
With the efforts of TCL, China Star Optoelectronics has rapidly developed into the world's second largest panel manufacturer. LCD panels account for nearly 60% of the cost of LCD TVs. TCL, which has huge LCD panel production capacity, has opened up the TV industry chain and effectively controlled costs. At the same time, China Star Optoelectronics' huge LCD panel production capacity has helped it rapidly expand TV production capacity. Its share in the global TV market is growing rapidly.
In contrast, due to the competition between China Star Optoelectronics and BOE, the two major Chinese LCD panel companies, South Korea’s Samsung and LGD have considered that they cannot compete with Chinese panel companies in terms of cost and continue to reduce their LCD panel production capacity. This year, all LCD panel production lines will be completely shut down, and Samsung will even purchase LCD panels from China Star Optoelectronics. The competitiveness of Korean TV companies in the TV market has declined.
Under this trend, TCL has now surpassed LG in the smart TV market to become the world's second largest TV company. It is reported that 58% of TCL's TV sales are completed in the international market, making it the company with the highest overseas sales among domestic TV companies. TCL TV has become a tangible internationally renowned brand.
Since China's reform and opening up, China has always relied on processing supplied materials to develop its manufacturing industry. It was not until 2007 that processing trade accounted for less than 50% of China's import and export trade. The continuous decline in processing trade comes from the efforts of domestic companies including TCL, and these companies have now begun to enter the international market, and Chinese brands are gradually becoming synonymous with high-quality brands.
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