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As Portugal defeated the Swiss team 6:1, the last round of the 1/8 knockout round of the 2022 Qatar World Cup came to an end, and the top eight list was finally released. In addition to the fierce competition, China's home appliances' World Cup marketing war has already begun.
" Daily Economic News " reporter learned that Hisense is the official sponsor of the 2022 Qatar World Cup; TCL has sponsored the Brazilian football team and has signed four stars including Brazilian winger Rodrigo and French defender Varane as TCL global brand ambassadors; kitchen appliance companies are also active in this World Cup. Vantage has signed a contract to become the official home appliance partner of the Portuguese national football team in China; Wanhe Electric is the official partner of the German team in China; Macro is the sponsor of the Argentina team in China.
Statistics from the Household Appliances Branch of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products show that in the first 10 months of this year, China's exports of color TVs and white home appliances to 22 Arab League countries, including Qatar, showed a year-on-year increase. Recently, Yang Naimin, deputy general manager of TCL's Middle East and Africa Sales Center, told the "Daily Economic News" reporter that in recent years, the TCL brand has continued to maintain rapid growth in the Middle East market, especially in high-end products such as large-size, quantum dot color TVs, and cool air conditioners. It has quickly caught up with traditional Japanese and Korean high-end brands, and gradually established a brand image of mid-to-high-end smart home appliances made in China. He also mentioned that compared with European and American countries, there is a certain gap in the growth stability of the Middle East market.
Picture source: Daily Economic News Data chart
Chinese home appliances are increasingly paying attention to the Middle East market
The reporter learned that basically all Chinese home appliance companies have production bases or sales networks in the Middle East market.
Yang Naimin told the reporter of "Daily Economic News" that TCL brand business began to enter the Middle East market in 2004 and quickly entered all countries in the Middle East. Up to now, TCL has established an matrix of diversified core consumer electronic products such as color TVs, air conditioners, ice washers, mobile phones, and headphones in the Middle East market. In terms of production bases, TCL has worked with partners to establish local production and manufacturing capabilities in markets such as Turkey and Jordan, radiating to other Middle Eastern countries.
Hisense Home Appliances (SZ00921, stock price 13.64 yuan, market value 18.59 billion yuan) mentioned in the 2022 semi-annual report that the company regards the Middle East market as a key overseas market for home air conditioners. Hisense Video (SH600060, stock price 14.23 yuan, market value 18.61 billion yuan) also revealed at an investor research event in March this year that the company’s key overseas market tasks in 2022 include actively promoting the high-end process of the Central and Eastern African markets.
In July last year, Midea (Egypt) Kitchen and Hot Water Appliances Co., Ltd. laid the foundation stone and started construction of the 1.5 million dishwasher project in TEDA Cooperation Zone. In addition, one of the six global production bases of the washing machine division of Midea Group (SZ000333, stock price 51.25 yuan, market value 358.5 billion yuan) is located in Cairo, Egypt. In September this year, Midea Group mentioned in an analyst online conference call that Midea Group will further promote the construction of the Egyptian base to cover the Middle East and African markets.
Wanhe Electric (SZ002543, stock price 9.86 yuan, market value 7.332 billion yuan) recently announced that it plans to invest in the construction of a production line project with an annual output of 2 million sets of hot water parts and 500,000 sets of hot water machines in Egypt. After the project is completed, it will radiate to markets such as Africa, Europe, and the Middle East in the future.
It can be seen that in recent years, the Middle East market is receiving unanimous attention from Chinese home appliance manufacturers. Statistics from the Household Appliances Branch of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products show that in the first 10 months, the value of China’s exports of color TVs to 22 countries in the Arab League, including Qatar, increased by 29% year-on-year, and the value of exports of white home appliances increased by 11.21% year-on-year. GfK monitoring data states that in the first half of 2022, Middle East and Africa will be the only region in the world with positive growth in color TV sales.
According to TCL, in recent years, the TCL brand has maintained rapid growth in the Middle East market. Recently, TCL's retail sales in countries such as Qatar, Saudi Arabia, and the United Arab Emirates have also achieved over 100% growth.
TCL establishes a mid-to-high-end brand image in the Middle East
For enterprises, top sports event marketing is an important means for enterprises to shorten the time to build a global brand. The relevant person in charge of
TCL also told reporters that the sponsorship of the Brazilian team is an important layout of TCL in sports marketing in 2022. sports marketing can bring dual value of sales conversion and brand building to the brand. In this World Cup, TCL also adopted the strategy of matching one star in each country in the core European market countries, leveraging the popularity of top football stars to form a positive interaction with local business. Li Dongsheng, founder and chairman of
TCL, has previously stated that in 2021, TCL achieved revenue of 252.3 billion yuan through the two main entities of TCL Technology and TCL Industrial, and overseas sales were 117.4 billion yuan, accounting for more than 40%. Among them, overseas sales of terminal products such as color TVs and mobile phones account for approximately 54%. Omdia's latest monitoring data shows that in the third quarter of this year, TCL's smart screen sales market share ranked second in the world; in terms of global TV sales and sales, Samsung, LG, and TCL ranked among the top three in the world.
Hisense has joined hands with European Cup in 2016 and has been testing sports marketing waters for 8 years. From 2016 to 2021, Hisense's overseas sales revenue increased from 19.6 billion yuan to 72.5 billion yuan, and the proportion of overseas revenue increased from less than 20% to 41.3%.
returns to the Middle East. The reporter of "Daily Economic News" learned that Chinese home appliance brands are competing with European, American, Japanese and Korean brands in the Middle East market.
Yang Naimin also mentioned to reporters that the core problem faced by the TCL brand when it first entered the Middle East market was that local consumers' awareness of Chinese manufacturing and Chinese brands was at a relatively early stage of high cost performance. After years of development, the brand situation has been turned around. At present, TCL is gradually catching up with Japanese and Korean home appliance brands in Saudi Arabia, the United Arab Emirates, Qatar, Iraq and other countries.
"The TCL brand has quickly caught up with traditional Japanese and Korean high-end brands in high-end products such as large-size, quantum dot color TVs, and cool air conditioners, and has gradually established a brand image of mid-to-high-end smart home appliances." Yang Naimin said. Statistics from
GfK show that from January to October 2022, TCL’s smart screen sales share in Saudi Arabia was 10.3%, ranking second.
In Yang Naimin's view, compared with European and American countries, the technological development and reserves of Middle Eastern countries are still in their early stages, and there are currently no local mature consumer electronics brands. Therefore, consumers are more willing to try new external brands and products. Compared with European, American, Japanese and Korean brands, TCL is more daring to introduce the latest technological achievements in the industry and quickly gains the favor of Middle Eastern consumers.
Daily Economic News
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