On May 24th, Skyworth Southeast Asia Manufacturing Base was officially unveiled. Skyworth founder Huang Hongsheng stated that Skyworth will adopt four major directions for the future planning of the Southeast Asian market: First, it will use Indonesia as the stronghold to radiate the entire Southeast Asian market and unify the supply chain; In the business strategy, products are transformed from low-end to mid-to-high-end; third, try to operate "Toshiba" and "Chuangwei" dual brand; fourth, try online operations to expand market share.
Large consumption potential, Southeast Asian market = half Chinese market
In stark contrast to the overcapacity in China’s home appliance market and the slowdown in domestic demand, the popularity of home appliances in many Southeast Asian countries (except Singapore) is low. At present, the color TV market in Southeast Asia is growing rapidly. Sun Weizhong, general manager of Skyworth's overseas regional marketing headquarters, said that the 10 ASEAN countries together add up to about 10 billion people, equivalent to 45% of the Chinese market capacity. If the Southeast Asian market is well-established, It is equal to doing a half of the Chinese market, and Southeast Asia is not only close to China, but also the consumption habits are close to China. It is a seaport for Skyworth to go overseas.
In the Southeast Asia region, Skyworth already has a comprehensive strategic market layout, such as the Indonesian branch office, the Vietnam branch office, the Thai branch office, and the Philippines branch office. These branch offices have developed rapidly in just a few years and have achieved remarkable results. The Skyworth Southeast Asia manufacturing base settled in Indonesia and became one of the important supply chain hubs in Skyworth's overseas markets. It is understood that Skyworth's Indonesian manufacturing base is Skyworth’s first truly independent overseas plant. The formal unveiling of the base started. The creation of Skyworth's strong layout for the Southeast Asian market further predicts that Skyworth will take a new step on overseas internationalization.
As one of the 10 ASEAN countries, Indonesia is an important cooperation partner of China-ASEAN (10+1). Skyworth’s establishment of a Southeast Asia supply chain base can better utilize relevant government policies to provide more effective support for the back-end services of Skyworth Southeast Asia. At the same time, Indonesia is also the fourth most populous country in the world (having a population of nearly 250 million), with lower labor costs and more advantages in processing and manufacturing costs.
Sun Weizhong believes that once South East Asia is successful, it may form a niche market. For example, the successful operation of the Indonesian factory, the smooth development of Southeast Asia's own brand will drive the rapid development of Skyworth in other Southeast Asian markets, supply chain, talent reserve and training, Product adaptability and other aspects have experienced long-term experience and reserves to support the supply chain setup and factory management of Skyworth's future emerging markets.
Resolutely attack, take the "Belt and Road" Dongfeng business opportunities
Southeast Asia is an important maritime transportation hub. It is unique and important in geopolitics. It is the center of gravity of the “Belt and Road Initiativeâ€. In the past ten or even two decades, China’s most successful example of regional cooperation is ASEAN. Starting from ASEAN is the inevitable choice to promote the “Belt and Roadâ€. With the help of the “One Belt and One Road†strategy, there will be a substantial increase in both brand awareness and sales for home appliance companies. Skyworth seized the opportunity of this Chinese company to overtake the curve, and with the support of the “One Belt and One Road†national policy, it continued to strengthen the expansion of globalization.
Yang Dongwen, president of Skyworth Group, once said that developing countries and regions like Bangladesh, India, Indonesia, Jordan and Africa are all incremental markets and have great potential. "We re-entered our minds to clarify the goals, routes, and resources of internationalization." In 2015, Skyworth Group set up a mid-to-late color TV target: to sell 10 million units in overseas markets in 2017, and 30% for own brands, by 2020. It has achieved 15 million units and its own brand accounted for 50%. It seeks brand internationalization while product globalization.
Since 2014, Skyworth has completed a major strategy in the African market, the strong entry of the German market, and the acquisition of Toshiba TJP factories to strengthen the market layout of Southeast Asia in just two years. The internationalization process has been accelerating. In 2016, the world economy is still facing a situation of weak recovery. However, Chinese companies have embraced the national "One Belt and One Road" strategy but have ushered in a rare opportunity for overseas development.
Filling the gap in the market, the Japanese brand battleline contraction
For a long time in the past, Japanese household appliances had dominated the global home appliance market and had a full-scale suppression of domestic brands. However, in recent years, Japanese household appliances have seen a shrinkage in front of the world, and domestic home appliance brands have risen. Huang Hongsheng said that Skyworth's manufacturing base in Southeast Asia was formerly Toshiba Indonesia's consumer goods manufacturing company. It was established in 1996 and is a standard Japanese company. In recent years, Japanese brands have withdrawn from the home appliance industry due to the cost and profit issues, coupled with the strong rise of Chinese home appliance companies.
Skyworth is very difficult to enter the Southeast Asian market. Sun Weizhong revealed that during the early days when Skyworth entered Indonesia, local distributors were mostly Chinese and had advantages in communicating with Chinese companies, but local consumers rarely chose Chinese brands. "Since Skyworth's acquisition of TJP, performance has been on the rise, local dealers soon cooperated with us." It is understood that after Skyworth's acquisition of the Toshiba TJP plant in Indonesia, it greatly boosted the confidence of local distributors, and many outstanding customers began to actively cooperate with Skyworth. In a good start, Skyworth Indonesian branch office obtained operating profit for three consecutive months, and the monthly sales of the product were more than three times that of last year. "From the point of view of the order, the first year after the acquisition of the factory should exceed one million." Sun Weizhong said.
The acquisition of Toshiba's TJP plant in Indonesia is an invigorator for Skyworth's international development strategy. TJP's factory has excellent genes for Japanese brands. Skyworth can better learn from and use the advanced management concepts and production techniques of Japanese companies to inject more energy into Skyworth Manufacturing. The motivation. In the future, Skyworth will try to operate the "Toshiba" and "Chuangwei" dual-brand operations in the planning direction of the Southeast Asian market. High-end transformation has opened up the international market. With experience in overseas factories, Skyworth will also bring the internationalization of Skyworth's business model and talents, and provide a supply chain talent pool for future global operations.
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