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China TV Makers Set Sights on European Soccer and NFL to Expand Overseas
Chinese TV makers Hisense and TCL are leveraging major international sporting events to expand overseas. Hisense sponsors the UEFA European Championship to boost brand recognition and unveils its new U8N Pro television. TCL deepens collaboration with the NFL and aims to popularise American football in China.
Chinese TV manufacturers, such as Hisense and TCL, are strategically leveraging major international sporting events to expand their presence in overseas markets. With the aim of increasing their global market share, these companies are targeting the field dominated by Samsung Electronics.
Hisense, in particular, has been capitalising on the popularity of soccer. The company recently highlighted its sponsorship of this year's UEFA European Championship tournament as a means to enhance brand recognition among business partners. Additionally, Hisense unveiled its new U8N Pro television at the Appliance & Electronics World Expo in Shanghai, showcasing the device's split-screen function that allows viewers to watch two games simultaneously.
This marks the third consecutive European Championship that Hisense has sponsored, with this year's tournament projected to attract ten times the number of fans compared to the 2021 edition held during the pandemic. By capitalising on the soccer boom this summer, Hisense aims to boost TV shipments.
TCL, another major Chinese TV manufacturer, is also looking to expand its sales by forging partnerships with sports tournaments. The company has deepened its collaboration with the National Football League (NFL) in the United States. As an official partner of February's Super Bowl, TCL launched advertisements and sales campaigns for products like its 98-inch TVs. In January, TCL signed a partnership agreement with the NFL in China, with the goal of popularising American football in the country.
TCL has set its sights on the 2028 Los Angeles Summer Olympics, where flag football, a non-contact variant of American football, will make its debut. By working closely with the NFL, TCL aims to leverage the Olympic debut of football in 2028 to enhance brand awareness.
One of the reasons behind the overseas focus of Hisense and TCL is the saturation of the Chinese market. According to Chinese research firm Runto Technology, TV shipments in China declined by 8% in 2023, reaching the lowest point in the past decade. As people spend more time on their smartphones and less time entertaining others in their living rooms, TVs are no longer considered a necessity.
While Hisense and TCL have been expanding overseas for some time, the slump in the domestic market has prompted them to intensify their efforts. TCL Chairman Li Dongsheng, who attended the National People's Congress as a delegate of Guangdong province, emphasised the importance of Chinese companies going overseas to avoid being left behind.
Although Chinese brands are known for their high quality and competitive prices, they face challenges from industry leader Samsung. Samsung maintained its lead in global TV shipments last year, with 36.4 million units, followed by Hisense and TCL with just under 26 million units each, according to research firm Beijing All View Cloud Data Technology. The upcoming Paris Olympics, for which Samsung is an official partner, presents a significant business opportunity. If Samsung and other competitors launch a strong offensive, it could pose a barrier for Chinese manufacturers seeking to expand their market share.
Furthermore, the global TV market slowdown is a cause for concern. According to Beijing All View Cloud Data Technology, worldwide TV shipments in 2023 declined by 3.5% compared to 2022, marking the third consecutive year of decline. Although shipments are expected to see a slight increase of 0.6% this year, the overall trend is still a cause for caution.
In summary, Chinese TV makers like Hisense and TCL are strategically targeting major international sporting events, such as the UEFA European Championship and the NFL, to expand their presence in overseas markets. With the saturation of the Chinese market and the slowdown in global TV shipments, these companies are intensifying their efforts to boost their global market share. However, they face challenges from industry leader Samsung and the upcoming Paris Olympics, which could potentially hinder their expansion plans.
Chinese TV makers Hisense and TCL are leveraging major international sporting events to expand overseas.
Hisense sponsors the UEFA European Championship to boost brand recognition and unveils its new U8N Pro television.
TCL deepens collaboration with the NFL and aims to popularise American football in China.
Source: NIKKEI ASIA