1 day Ago By David Richards
Chinese TV brand Hisense has seen a surge in profits in Australia after previously reporting a $5M losses after tax. In their latest Australian Securities and Investment Commission filings, the Melbourne based Company reported a profit after tax for 2023 of $6,887,000 after reporting a loss of $5,137,000 in the prior year. The surge in profits came despite a marginal lift in sales to $456.
9M Vs 453.7M in the prior year. Their advertising spends in Australia decreased by $2M, freight and cartage costs fell by over $69M, stock obsolescence halved in the last financial year.
A breakdown of TV sales Vs appliance sales has not been revealed. Currently Hisense is in a battle with TCL to grow share in the Australian TV market, with both brands already stripping sales away from Samsung LG and Sony. Hisense management believe they can topple Samsung in the critical US market with the next two years.
Both brands are currently building share in the appliance market in Australia with TV’s still their main focus. Recently Samsung Australia reported that they were laying off 10% of their staff in Australia, after the business reporting a 50% slump in profits to $51.185 million as at December 2023 Vs $101.
245M as of the same period in 2022. Revenues fell to $2.872 billion Vs $3.
375 billion at December 2022. LG Electronics Australia reported a massive 21% slump in revenues, in Australia, with the Company struggling to lift sales of their OLED TV’s and premium appliances up against a surging TCL and Hisense, after the business chose to jettison the affordable premium and value market where Hisense and TCL are gaining share, for a larger share of the premium market for appliances and TVs. Hisense who has been pushing their large screen laser TV’s recently, believe that they can topple Samsung to become the number one TV brand during the next two years in various markets including in the US with Hisense set to roll out a new TV range at CES 2025.
In Australia both TCL the world’s #1 manufacturer of TV’s and Hisense have been gaining share from the two South Korean brands LG and Samsung, with TCL set to roll out new low-cost OLED TV’s next year. Hisense also own the Toshiba TV brand which is sold at The Good Guys. According to market data from Counterpoint, Hisense ranked second in the USA for TV shipments in Q2 2024, trailing Samsung with the position switching between TCL and Hisense.
Hisense and TCL, which have in the past focused on normal LCD TVs, have increased market share by strengthening their advanced TV portfolios such as QD-LCD and Mini LED LCD,” Counterpoint management claims. A85N OLED TV by Hisense. Hisense is also positioned to take advantage of new manufacturing capabilities in China with both Hisense and TCL pushing new display technology that analysts claim is set to hurt OLED sales due to it being seen as being as good as South Korean manufactured OLED panels.
In Australia soccer fans would have noticed the massive marketing spend that Hisense invested in the recent UEFA European Championship in Germany. Retailers in Australia who were flown to games in Europe claim it was impossible to miss Hisense’s bold presence at the UEFA European Championship in Germany, where its slogan “China’s No. 1, never settle for No.
2 globally” dominated the landscape. In the Companies 2024 global annual report, Hisense highlighted how its marketing efforts at the Euros significantly boosted its overseas market growth for appliances and TV’ with a 20.06% year-on-year (YoY) surge in revenue from its core European business with this spilling over to other markets around the world especially in Asia Pacific where European soccer teams are followed.
Eighteen years ago, Hisense outlined a strategy to prioritize overseas expansion, a vision that is now coming to fruition. last year, Hisense’s overseas revenue reached USD $3.9 billion, this represented over half of its total earnings.
In an effort to boost their US and global ambitions the Company is further investing millions in marketing having signed on as the first official partner of the FIFA Club World Cup, set to kick off in Miami in June 2025. Globally, Hisense is trailing behind Samsung while fiercely competing with Chinese arch rival TCL, for the second spot in the all-important US market. TCL reclaimed the number two spot globally by a slim margin in Q2 2024, according to Counterpoint.
Both Hisense and TCL are stripping share away from LG in the premium market as the South Korean Company faces backlash from consumers over their strategy to strip the viewing data of LG customers who have purchased a WebOS enabled TV with the data being sold to third parties for millions of dollars. Hisense generates half of its revenue from outside China, with North America contributing approximately 30% of its international sales..
