Success beyond China

Hisense's strong performance in South Africa is atthe product of its heavy emphasis on an international branding strategy. The company's Chairman, Zhou Houjian, said that in the long run, Hisense's success "lies beyond China."

"[The company's] best resources and efforts should go into overseas markets," Zhou said during the firm's 40th anniversary ceremony at its global headquarter Qingdao.

Currently, 20 percent of Hisense's sales are generated overseas. It started selling products overseas in the 1980s. Now, it has overseas manufacturing bases in South Africa, Algeria and Egypt, and three R&D centers in the United States and Europe. Its products sell well in over 130 countries and regions worldwide. Its overseas sales are planned to triple over the next three years, and global sales will contribute nearly 40 percent of its annual sales.

According to Doctor Lin Lan, another Vice President in charge of the firm's overseas business, "It [the sales plan] cannot be achieved easily because the financial crisis heavily affected the business in traditional markets." But Lin said Hisense has made great breakthroughs in markets that were less affected, such as South America, Australia and Africa. In Africa, Hisense's televisions accounted for about 10 percent of the market. Its overseas production base, Hisense Egypt, was able to manufacture televisions for sale in North Africa and the Middle East last year. In Australia, Hisense bought naming rights for a major stadium in the center of Melbourne, greatly improving brand awareness there.

"Hisense will develop the emerging markets, including Australia, Africa, South America and Southeast Asia, as the potential there is great," Zhou said.

Social responsibility

While giving top priority to high-quality products and localized service, Hisense has also been active with corporate social responsibility efforts in South Africa.

Seeing itself as a member of the community, Hisense has focused on charity efforts. In collaboration with electronics chain stores across South Africa, the Chinese firm has launched a fund-raiser, to which it has made significant donations, to aid the disadvantaged in the local schools, hospitals, and social welfare institutions.

One example is Hisense's partnership with the Red Cross Children's Hospital, the leading center for child health care in Africa. The company is committed to helping build operating rooms for AIDS orphans and has donated 1 rand ($0.13) for every television it sells. Local electronics retailers, no matter big or small, are actively participating in the activities.

Red Cross Children's Hospital treats more than 800 children each month from all over Africa. "In order to treat more [kids], we are in urgent need of more modern operating rooms. Hisense has provided us timely help, which [allows us] to bring more children a better future," said the hospital's former spokesperson.

The company's continuous efforts have won the hearts of South Africans. The Chinese brand became the sole supplier of home appliances for NETCARE in 2010, the largest private hospital network in South Africa.

Firoz Kachalia, former Speaker at the Gauteng Legislature in Gauteng Province where Hisense SA is based, pointed out that the arrival of Hisense has created more jobs for South Africans, brought forward the advanced home appliances, and helped increase local governments' tax revenue.

Due to the important contribution it has made to local economic and social development, Hisense has been listed as one of the "model foreign-invested enterprises" by the Gauteng provincial government.

Pedro Nueno, Executive President with China Europe International Business School, spoke positively of such global march by Chinese enterprises. "Chinese investments are welcome in many countries, as long as they contribute to the well being of these countries," he wrote in an article. Hisense is proving Nueno's words true as the brand continues to win the world's respect.

Hisense Profile

Hisense began life as a small radio manufacturer in 1969 and has since become a multibillion-dollar global company, employing over 60,000 workers worldwide. Hisense follows a development strategy based on "hi-tech, high quality, high-level service, and creating an internationally famous brand." A global R&D network, a national R&D center, a post-doctoral research program, and a hi-tech multimedia laboratory are all part of the Hisense structure. With an eye on sharing skills, the company has partnerships with IBM, Hitachi, Whirlpool, and AMD for the development and marketing of air-conditioners, refrigerators, and information technology.

A world leader in the manufacturing of flat panel televisions, household appliances, and mobile communications, Hisense achieved sales revenue of $8.2 billion in 2009, ranking among the top 100 Chinese electronics manufacturers. Its products are sold in over 130 countries and regions throughout the world.

Source: www.hisense.com