Sharp's global layout opens up China's second and third-tier markets

Exploring China's second and third tier markets

In April of this year, Sharp adjusted the management structure of its overseas business and established the US headquarters, the European headquarters, the China headquarters and the emerging country headquarters. You are the head of the China headquarters. We know that you were fully responsible for Sharp's overseas business and served as the chairman of Sharp Trading (China) Co., Ltd. In your opinion, why should Sharp adjust at this time, what are the expectations for this adjustment?

Mr. Kanno, Chairman of Sharp Trading (China) Co., Ltd.: There are many countries and regions involved in Sharp business, and there are 62 locations in 25 countries and regions around the world.

In the US market, in addition to promoting the three key products of LCD TVs, solar energy, and photocopiers, Sharp will officially open up markets for PCI (Pure Ion Group) related products and LED lighting. Among them, in the aspect of solar energy, as the US government has increased its investment, its demand is expected to increase substantially, so the solar energy industry will be fully promoted as a key point.

In the European market, Sharp is stepping up the development of PCI-related products and LED lighting in addition to the three key products of LCD TVs, solar energy and copiers, and is committed to expanding its scale.

In the Asian market, Sharp introduced new technology products to meet the needs of consumers in emerging market countries.

In the Chinese market, Sharp is committed to expanding its product business centered on LCD TVs, mobile phones, white goods, and photocopiers. With the implementation of the LCD panel project promoted in cooperation with Nanjing City and China Light and Power Panda, the business is expected to be further expanded.

However, the situation in each market is different. Therefore, since April 1 this year, Sharp has made major adjustments to the overseas structure. The US headquarters, the European headquarters, the China headquarters and the emerging country headquarters have been newly established, and the headquarters has been set up separately. minister. In this way, the local minister can quickly collect local information and then analyze it to make a judgment. Due to the large number of regions involved in the Emerging Countries Headquarters, we have managed them in Japan, and we are located in the United States, Europe and China.

I worked in China from 2005 to 2008. In 2005, Sharp established Sharp Trade (China) Co., Ltd. in China, and I served as the chairman of the first generation. Before Sharp's various sales departments belonged to various factories, the reason why we wanted to set up a trading company in China was because we wanted to promote Sharp's brand and market activities. At present, we have achieved some success, and Sharp brand awareness has been greatly improved in the market. In 2008, I returned to Japan and served as the head of the Japan Overseas Business Division, responsible for all of Sharp's overseas operations, including 30 sales companies and 22 production plants around the world.

At present, the United States is the largest market in the world, and China will become the largest market in the world in the future. In the two departments of the United States and China, we have sent two responsible persons at the standing level for management. China is more connected to other countries than other countries. Since I have some experience in the Chinese market, this year the company sent me to China.

Liu Dong: As you said, China will become the world's largest market in the future. At present, Sharp produces and sells LCD TVs, mobile phones, white batteries, copiers and other products in the Chinese market. How do you evaluate the performance of Sharp's products in the Chinese market? Although the Chinese market is huge, the competition is fierce. You will further expand China this year. In the third-tier city market, what specific measures are there in channel construction and cost control?

Takino Shinko: Sharp is a manufacturer that mainly produces liquid crystal products. Therefore, in addition to producing LCD TVs, we also put LCD screens on mobile phones. In the future, Sharp will focus on promoting the development of various businesses.

In terms of LCD TVs, Sharp has maintained its position as the number one market share in some large cities, and we will strengthen this business in the future. In addition, in some prefecture-level cities, although our market share is not ranked first, the recognition has been greatly improved, and we will gradually expand the sales scale in mainland China in the future. In China, Sharp has surpassed Sony in the first place in foreign brands. At present, only in the Chinese market, Sharp LCD TVs rank first in market share, so we hope to maintain such achievements and further consolidate this advantage.

It is also worth noting that because of the fierce competition in the Chinese market, we still have some difficulties in cost control. For example, in LCD TV, we have a lot of competitive competitors in China. Fortunately, we have a high brand recognition in China, so the current profit situation of Sharp in China is similar to the forecast and keeps growing.

It is unrealistic to set up channels on such a large place in China, and it is not cost-effective in terms of cost. Therefore, we will use the channels of agents to expand sales in third- and fourth-tier cities.

Liu Dong: You have served as the Sharp Overseas Business Director and have been the head of many countries and regions. In the face of differentiated market demand, does Sharp implement a more flexible market strategy and product strategy for the Chinese market, such as pricing strategy and localization strategy?

Kanno's letter: Sharp's strategy in various countries has basically not changed much, but in terms of product development, we will set different functions for market demand and carry out differentiated design.

In terms of white electricity, we develop products based on the lifestyle of each region. For example, local residents in Hong Kong, China, prefer refrigerators with a larger refrigerated space and a smaller freezer space. However, Shanghai residents prefer refrigerators with a larger freezing space and a smaller refrigerated space.

The same is true for air conditioners. Japanese people do not like to blow air-conditioned air, but Indonesian consumers hope to blow a strong cold wind directly. Therefore, we will produce different products according to the needs of each place.

Increase sales of LED and 3D TVs worldwide

Liu Dong: At present, the LED TV market is developing rapidly. There is a view that the global flat-panel TV will be transformed from a cold cathode tube (CCFL) LCD TV to an LED-backlit LCD TV. In 2012, the output of LED-backlit LCD TV will exceed the output of cold cathode backlight LCD TV. . How do you view the market prospects of LED TVs, and what are the competitive advantages of Sharp in this respect?

Kanno Shinko: Sharp is the first company to launch LED TVs. We started selling LED TVs in October 2008. Just because we sold the earliest, the price of the product is somewhat high, so the quantity is not much. We are currently launching a number of new technologies related to LED TVs, such as UV2A technology and color enhancement technology. LED TVs using these technologies have been shown at the CES show in Las Vegas in January this year, which has caused great repercussions. In China, we are striving to start selling LED TVs during the National Day this year.

In the future, we will also produce more LCD panels equipped with new technologies (UV2A technology, etc.) to promote LED TVs worldwide.

Liu Dong: In addition to LED TVs, emerging display technologies such as 3D, OLED (organic light-emitting diode), laser display, and electronic paper have also become the focus of attention inside and outside the industry. Of course, these products also face constraints in terms of standards, costs, and markets. . What judgment do you have on these flat panel display technologies and market trends?

Kanno Shinko: In terms of 3D technology, we plan to increase the proportion of 3D TVs sold by Sharp worldwide to 5% to 10% of total TV sales in 2010. In the past, 3D TVs had problems such as darker brightness and unclear images. Sharp developed a number of related technologies to improve, such as the color enhancement technology mentioned earlier and the UV2A technology. With these technologies, the crosstalk of 3D TVs will be reduced and the display will be better, so I believe this product will lead the industry in the future.

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