Skyworth Accelerates Overseas Expansion, Targeting Home Appliance Sales of 10 Million Units Within Three Years
SHENZHEN, China, April 16, 2015 / PRNewswire — China’s largest private TV set manufacturer, Skyworth Group, held its 2015 Overseas Distributor Convention & New Product Exhibition on April 11 in Shenzhen, China. Themed “Trends & Emerging Trends,” Skyworth Digital Holdings Limited executive director & CEO and Skyworth Group president Yang Dongwen, together with the head of the color TV division and heads of the group’s subsidiaries dealing with refrigerators, washing machines and air-conditioners, announced the group’s strategy for expansion overseas, kicking off Skyworth’s further expansion in global markets.
“Skyworth plans to progressively build and deploy its overseas supply chain and quickly build out large-scale operations outside of its home market. At the same time, the group plans to aggressively promote its proprietary brands in a move to gain international recognition,” Mr. Yang explained.
Mr. Yang added that Skyworth is targeting home appliance sales totaling 10 million units during the three year period between now and the end of 2017, based on the corporate philosophy of diversified operations with a focus on television sets, of which proprietary brands will account for 30 percent, and home appliances, including refrigerators, washing machines and air-conditioners, which will account for 10 percent of the total. By 2020, Skyworth plans to achieve an ex-China goal of home appliance sales totaling 15 million units, 50% of which will be sold under proprietary brands.
“To achieve this ambitious goal, Skyworth will progressively nurture and build an independently-managed overseas team by increasing spending on research and development, optimizing the overseas sales platform and accounting center and entering new markets through a combination of production and financing,” Mr. Yang said. He added, reassuringly, “Under the new conditions, Skyworth expects to evolve away from its previous OEM and ODM-based model of operation and achieve name recognition for its own brands in international markets.”
On the same day, Skyworth Group vice president and color TV business division CEO Liu Tangzhi presented Skyworth’s 8-point program for this year’s overseas expansion, including specific goals for personnel, R&D, supply chain, branding and capital operation, among others.
Skyworth founder Huang Hongsheng, Skyworth Digital Holdings Limited board chairman Lin Weiping and the heads of group subsidiaries dealing with color TVs, air conditioners, refrigerators and washing machines also attended the event.
New Normal Calls for New Strategies
As China’s leading company in the field of display, Skyworth has maintained a compound annual growth rate of 14.8 percent over the past five years and has been the company with the fastest growing brand value in the color TV sector for six consecutive years. According to AVC’s monthly Chinese LCD TV market analytical report, Skyworth holds the highest market share in the domestic color TV market. In addition, Skyworth also holds the highest market share in the domestic HD set-top box market.
The entry of the Chinese economy into a phase that is being termed the “new normal” is an indication that the explosive growth of the domestic economy over the past few years is not expected to recur anytime soon. In response to the “One Belt, One Road” initiative put forward by Chinese leaders recently, Skyworth plans to manage its domestic market cautiously while progressively exploring markets outside of China in a move to grow market share. Skyworth has put forward a new development strategy focused on strengthening its core businesses while expanding into related sectors. Mr. Yang explained that Skyworth will, under the guidance of the new strategy, prioritize four areas: innovation in products, innovation in business models, diversification into related fields and globalization.
So far, Skyworth has already made a good start in its overseas efforts: overseas sales of digital set-top box products have already surpassed domestic sales and overseas sales of other home appliances have already surged well beyond expectations. The existing enormous markets of Southeast Asia, South Asia and Africa have presented excellent opportunities to Skyworth. By the end of 2014, Skyworth digital set-top boxes had grabbed the highest market share in Africa, India, Thailand and the Philippines and kept its market advantage in many regional markets in Indonesia, Vietnam and Myanmar.
Attendees at the convention came mainly from these regions, including Thailand, the Philippines, Vietnam, India, Indonesia and South Africa. These are the overseas markets where Skyworth has expanded the fastest over recent years.
Skyworth, founded in 1988 and headquartered in Shenzhen High-tech Industrial Park, maintains a staff of over 35,000. Based on China and eyeing the world, Skyworth is a large-scale high-tech conglomerate with an R&D focus on consumer electronics, display devices, digital set-top boxes, security monitors, network communications, semiconductors, refrigerators and washing machines, 3Cdigitals, LED lighting, among other products. Its parent company Skyworth Digital was listed on HK Stock Exchange in 2000 (00751.HK). In November 2014, a subsidiary, Skyworth Digital Co., Ltd. achieved a back-door listing on the main board of Shenzhen Stock Exchange through China Resources JinHua Co., Ltd., a dormant public shell company, under the ticker symbol SZ000810, securing a capital platform in mainland China’s A-share capital market.
Skyworth, in its 27th year, is now among the world’s top 10 color TV brands, the leading brand in China’s display industry and the 13th among China Top-100 Electronic Information Technology Enterprises. The brand value of Skyworth reached 55.695 billion Chinese yuan during 2014. For more information, please visit the company website www.skyworth.com.