Affected by the epidemic, China’s largest home appliance Exhibition “China home appliance and consumer electronics Expo (AWE)” will be postponed to next year. The news spread that the home appliance market was in an uproar.

The suspension of the exhibition will undoubtedly make things worse for the power plant operators who have been hit hard by the epidemic. The small household appliance enterprises are struggling, and the life of the color TV industry giant Hisense video is not easy.

In the financial report of the third quarter of 2019, Hisense video achieved a revenue of 23.644 billion yuan, a year-on-year decrease of 2.91%; The net profit attributable to the parent company was 265 million yuan, a year-on-year decrease of 21.10%. In the last report period of Hisense video, that is, the semi annual report of 2019, its net profit was even worse, with a year-on-year drop of 81.48%, realizing only 62.2055 million yuan.

Hisense video's obsession with laser TV leads to its misjudgment of OLED TV

At the end of 2019, Hisense just walked out of the huge pit of acquiring Toshiba TVs company, which suffered a serious loss. Before waiting for a breath, Hisense encountered the epidemic Black Swan incident again.

In the second half of last year, Hisense launched the first domestic social TV S7 with the slogan of focusing on social networking. Because of its innovative functions, it has been hot for some time. However, due to the delay of the Expo, on February 12, Hisense video could only hold the launch of “social TV” Hisense S7 cloud edition online. Compared with the effect that consumers can experience the latest product functions offline, the online press conference is definitely at a discount.

With the continuous rain at night, Hisense’s hope of bringing new growth point to social TV has become dim. Hisense, the big brother of color TV industry, has become more and more difficult in this new round of snowstorm.

Declining trend

In the color TV industry, Hisense video is a well deserved giant.

In the domestic market, Hisense has created the first market share in 13 years; The development of overseas markets can not be underestimated, not only in the United States, Europe and other places, but also in South Africa, Australia and other places in recent years.

Today, Hisense is still strong. In 2019, Hisense’s sales volume, offline sales share, Internet TV user number and other fields in China are the first in the domestic market, and even reach the world’s first level.

But just like the surging under the calm sea, Hisense has achieved good results in many fields, but the revenue data disclosed in its financial report has deterred the capital market.

According to wind’s data, Hisense’s annual year-on-year revenue growth rate from 2014 to 2018 only reached single digits, and in the first three quarters of 2019, the revenue fell by 2.91% year-on-year.

In terms of profitability, in 2017 and 2018, the profitability of Hisense video has been sluggish, and there is no improvement momentum.

In 2017 and 2018, Hisense’s net profit returned to the parent decreased by 45.79% and 59.40% respectively; The deduction of non net profit decreased by 57.03% and 91.82% respectively. Recently, Hisense’s financial data for the first three quarters of 2019 showed that its net profit attributable to its parent company was 265 million yuan, a year-on-year decrease of 21.10%; Non net profit after deduction was only 6.251 million yuan, a sharp decrease of 94.69% compared with the same period of the previous year.

From its listing in 1997 to today, Hisense video, a giant of color TV industry, has been galloping for 23 years. The reason why it is no longer evergreen is related to the weakness of the domestic color TV market and the overall downturn of the industry.

On the one hand, with the popularity of mobile phones, computers and other electronics, there is a great diversion of consumers in the color TV industry, and the demand for TV is decreasing.

According to the data of zhongyikang times, in recent years, the retail volume of the color TV industry has declined continuously. In 2018, the retail volume decreased by 2.7% year on year, and the retail volume decreased by 11.4%. In 2019, the downturn of the color TV industry continued. In the first half of the year, the retail volume of the color TV industry decreased by 4.3%, the average price decreased by 6.1% and the retail volume decreased by 13.1%. The color TV industry showed a downward trend in retail volume, average price and retail volume.

On the other hand, Hisense, the giant of color TV industry, is also facing the invasion of the new generation of Internet into the color TV market.

In the first half of 2019, Xiaomi TV won the first place in domestic market sales for six consecutive months. The cumulative shipment volume from January to April ranked fifth in the world, and the shipment volume and sales volume exceeded 4 million units in half a year. In addition, Huawei’s move to enter the color TV industry, claiming not to do color TV but to do smart screen, has a big impact on the color TV industry.

The downturn of the color TV market and the impact of the “smart TV” carried by the new generation of Internet on the eldest brothers in the color TV industry have brought many color TV giants to a dead end. Under the atmosphere that the times will abandon Hisense without transformation, Hisense started the road of self-help transformation.

Transformation and self rescue

On December 2, 2019, Hisense announced that it would change the name of “Hisense appliance” to “Hisense video”, which is a milestone for it to bid farewell to the traditional home appliance market and enter the smart home market.

In fact, there are not a few traditional home appliance enterprises that are similar to Hisense video’s march into the smart home market.

Driven by 5g, AI and Internet of things technology, many traditional color TV manufacturers in the market are transforming to intelligent. For example, Haier has long proposed the strategy of using color TV products as “smart home interaction center”; TCL industry also mentioned the development direction of AI, Internet of things + cloud platform.

This paper studies the reasons why the traditional home appliance giants fled to the smart home market.

On the one hand, in the face of many market changes, traditional color TV manufacturers are losing their charm in the color TV market. Even Hisense, as a color TV giant, will inevitably face the dilemma of stagnant revenue and difficult to improve net profit. At that time, transformation seems to be the only way for sustainable development.

On the other hand, as early as 2016, Hisense video set up a home Internet AI company called “jumeikan”, aiming to provide users with internet access and services of smart TV, smart phone, smart speaker and other devices through zhihuiyun platform, so as to create an intelligent life ecology for users. Now, Hisense’s transformation and renaming is also a decision after it is fully prepared to enter the smart home market.

2020 is a year for Hisense to seek change. At a time when 5g, AI and the Internet of things are going to become the trend, traditional color TV manufacturers do not have enough confidence in the accumulation of technology in the field of intelligence. Compared with technology companies, the Internet companies that use Hukou stele and head do not have enough confidence. Therefore, whether Hisense can transform successfully still needs to be questioned.

To sum up, although the development direction put forward by Hisense video is consistent with the transformation pace of many traditional color TV manufacturers, now Hisense video can be said to cross the river by touching the stone. No one knows whether the other side of the river is a bright road or another thorny road. What’s more difficult is that Toshiba TVs, which took as long as nine months to acquire at the beginning, failed to bring Hisense out of the trough as expected. On the contrary, Hisense fell into a profit dilemma.

Drag on acquisition of Toshiba TVs

In August 2018, Hisense officially announced that the acquisition of Toshiba’s TVs company had been completed. In this nine month tug of war, the delivery price dropped from 789 million yuan to 355 million yuan.

In spite of the dissuasion from the outside world, he bought Hisense video of Toshiba TVs company, and indeed gained some benefits through Toshiba TVs company.

In terms of technology, Hisense video was able to launch mature OLED TV products in 2018 through the acquisition of Toshiba TVs and its OLED technology. Then, the R & D team of Toshiba TVs company in Japan also further helped Hisense video continuously increase its technology investment in the upstream of OLED, forming its advantages in the upstream and downstream of OLED industry chain.

In terms of brand influence, Toshiba TVs, as an old color TV manufacturer, has a certain influence. Through the acquisition of Toshiba TVs, Hisense can further improve the layout of Hisense’s high-end brands and promote its global development.

In the overseas market, Toshiba TVs has relatively mature network channels and high popularity, which will further enhance the influence of Hisense in the overseas medium and high-end smart TV market. At the same time, Hisense video has many accumulated network channels in the domestic market. The introduction of Toshiba TVs products into the domestic market will further improve the competitiveness of Hisense video.

However, Hisense’s eagerness to acquire Toshiba TVs has both advantages and disadvantages.

Before Hisense acquired Toshiba TVs, Toshiba TVs was still in a state of negative equity and continued to lose money. The industry was generally not optimistic about Hisense’s acquisition, and even regarded Toshiba TVs as “financial rubbish”.

In 2018, Toshiba TVs had total assets of RMB 2.407 billion, net assets of RMB – 255 million, operating revenue of RMB 2.669 billion, net profit of RMB – 176 million, and a year-on-year loss of RMB 362 million. Although the loss of Toshiba TVs in 2018 was about 300 million yuan, due to its high expense rate, it was still in a loss state in 2018, so the overall profit declined.

In recent years, Hisense’s revenue has increased slightly, but its net profit is still in the dilemma of continuous decline. After the acquisition of Toshiba TVs, its net profit has declined even more.

From 2016 to 2018, Hisense video achieved revenue of 31.832 billion yuan, 32.870 billion yuan and 35.128 billion yuan respectively, with year-on-year growth of 3.69%, 5.44% and 6.87% respectively; Its net profit was 1.759 billion yuan, 967 million yuan and 392 million yuan respectively, with a year-on-year growth of 18.14% in 2016. After the acquisition of Toshiba TVs, the net profit from 2017 to 2018 decreased by 45.05% and 59.40% year on year.

Moreover, the burden of acquiring Toshiba TVs continues to this day. In the semi annual report of 2019, Hisense’s net profit plummeted by 81.48% year-on-year, and the official of Hisense said: the important reason for the net profit plummeting is that it is still in a state of loss. Toshiba TVs company has dragged down Hisense.

In the third quarter of 2019, Hisense revealed that Toshiba TVs has turned losses into profits. But in the long run, how to ensure Toshiba TVs company to supply blood for Hisense video, and provide more positive value for Hisense video in terms of technology, product manufacturing and brand, so as to turn Hisense video over, the test of two in one still exists.

Wrong game: OLED TV loses power, laser TV burns its mouth

“No matter how the times change, the status of TV as the master control center of family smart life will not change.” Wang Wei, vice president of Hisense video technology, once said so. But in the choice of OLED TV and laser TV, Hisense made a mistake, which affected its layout in the field of smart home.

Hisense regards laser TV, OLED TV and uled TV as its three carriages. However, in terms of laser TV and OLED TV, the development of Hisense video is very different.

Since 2017, OLED TV, as the representative of high-end TV, has been increasing in sales, and many TV manufacturers such as Skyworth, Changhong and Konka have entered the market one after another. For the booming OLED TV, Hisense video has always stood in the opposition camp, and regarded laser TV as the research focus.

However, the development of laser TV is not as smooth as expected by Hisense. The technology of laser TV products is stagnant, the price of laser TV is expensive, and users do not pay for it. All these are the important reasons that hinder its development in the market.

According to the report on the Chinese mainland laser TV market released by Orville cloud network, the Chinese mainland’s laser TV delivery volume was 201 thousand and 900 in 2019. According to another survey report of Ovi cloud, the retail volume of China’s color TV market in 2019 is 47.72 million units, and the overall sales volume of laser TV in the domestic color TV market in 2019 accounts for only 0.4%.

Compared with laser TV, OLED TV has a brighter future.

According to the forecast of IHS Markit, the shipment volume of OLED layout will reach 4.5 million pieces in 2020, realizing a 50% growth; It will reach 6.7 million in 2021, 9.35 million in 2022 and 11.5 million in 2023. Therefore, it is estimated that OLED TV will account for more than 10% of the market in 2023.

Hisense video, which changes when it knows its mistakes, didn’t enter the OLED TV battlefield until 2018, but at this time, the OLED TV battlefield has long been occupied, and even the color TV giants such as Hisense video are hard to make waves.

Hisense video’s insistence on Laser TV leads to its misjudgment of OLED TV. At present, the development of laser TV in the color TV market is not satisfactory. Hisense video holding laser TV seems to have the most powerful weapon in the world, but it has no chance to use it.


Market investment and smart home product selection errors, coupled with fierce competitors, make the color TV industry giant Hisense video bogged down in stagnant revenue and difficult to improve net profit. At the time of resisting the enemy, another epidemic Blizzard came in the depressed market, which pulled back the transformation steps just taken by the color TV giant Hisense.

In a “chaotic market”, every enterprise is not easy. But no matter how cold the market is, there will be opportunities to survive in 2020, and persistence is victory

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