TCL International Pathways Testify China's Manufacturing Development Li Dongsheng Still on the Road

TCL and Li Dongsheng are the epitome of the rise of China's manufacturing industry and industrialists over the past 30 years of reform and opening up.

In the past, domestic consumers were keen on foreign TV brands, and now European consumers love to buy TV from China.

Riding on the national “One Belt and One Road” policy, this year, TCL launched a new round of internationalization. On June 20, the first arrival in Poland of the "China-EU Class", TCL Chengdu's supply of goods accounted for nearly 80% of its cargo.

Compared with ten years ago, Li Dongsheng and TCL have more abundant insights and experience in internationalization. At present, TCL has established a global operating structure and an international management team. For the future development, Li Dongsheng admitted that there is more space in the overseas market and hopes that within three years, the proportion of TCL Group’s overseas revenue will further increase to 50%.

TCL Group Chairman and CEO Li Dongsheng

One Belt One Way Polish Sample

On June 8th, President Iron’s first unified the names of the local freight trains in Europe to “China-EU Class”. On June 20th, 12 days later, the first “China-EU Class” arrived in Warsaw, Poland.

President Xi Jinping, who is on a state visit to Poland, and President Duada of Poland attended the "Unified Brand" China-Europe Bangli "Suandau Polish Ceremony". TCL Group Chairman and CEO Li Dongsheng was invited as the only company representative to participate in the event.

It is understood that the "CEIBS class" Chengdu first train will be organized in 41 sections, all of which are designed with national specifications. The total number of electronic components transported by TCL to Poland is 33, accounting for nearly 80 %.

The data shows that Poland is China’s largest trading partner in the Central and Eastern Europe region and the EU’s ninth largest trading partner. China is Poland’s third largest source of imports and Asia’s largest trading partner. At present, Poland is committed to re-industrialization. China is vigorously promoting international capacity cooperation, taking root in the region, and building a production base and R&D center in Poland. This is an important way for Chinese companies to participate in the process of reindustrialization in Poland. In 2015, bilateral trade volume between the two countries reached 17 billion U.S. dollars. In recent years, dozens of Chinese companies, including TCL, have accumulatively invested nearly US$1.3 billion in Poland to provide more than 14,000 jobs, and more than 80% are local employees in Poland.

In 2004, TCL acquired Thomson, the largest TV company in France, and Thomson became the "bridgehead" for TCL to enter the European market. Subsequently, TCL set up a manufacturing plant in Poland. At present, TCL Poland is China's largest industrial manufacturing project in Poland and the largest factory in Larrdorf, Poland. It covers an area of ​​105,000 square meters and currently has 5 production lines, which can produce 4.5 million TVs per year. 284 Most of the employees come from the city of 拉lardorf.

After the opening of the China-EU Bangli Group, the logistics time of TCL will be reduced from 38 days to 23 days, which will not only improve the logistics efficiency, but also reduce the cost and greatly increase the market response speed. At present, TCL has transported goods from Chengdu to Poland by 6,000 trains per year through China and Europe. It is expected that after two years, the production capacity of the Polish factory will increase by approximately twofold, and the material delivered through the China-EU class will reach 16. Million containers.

Tang Xin, Chief Financial Officer of TCL Poland, stated that Poland, as an important transportation hub in Europe, is close to ports such as Hamburg in Germany, facilitating the procurement of raw materials. TCL TV will be able to reach Frankfurt and Paris in one day after being offline. It will be able to reach the entire European market including Lisbon and Madrid in three days. Finished products can be shipped to all European countries within four days, so TCL Europe Sales Company puts TV finished products. The warehouse is located in the Polish factory. At the same time, the supply chain cycle is shortened, capital occupation is reduced, capital turnover is accelerated, and the entire logistics cycle is shortened, which is beneficial to the improvement of company profits.

In order to improve the efficiency of the plant, TCL has also carried out many new types of projects in Poland, including the establishment of a lean production line, the establishment of an automated unmanned packaging line, and the establishment of a centralized component pre-processing zone.

Li Dongsheng said that the “Belt and Road” strategy is very popular among countries along the route, which creates a very good opportunity for Chinese companies to further expand investment and find business opportunities in the region. TCL hopes to develop its own international capabilities through the “One Belt and One Road” strategy while stimulating local economic development and achieving mutual benefits and win-win results.

The data provided by TCL to Times Weekly reporters shows that since the TCL brand entered the European market in 2009, it has reached the third place in the European color TV market. Now Thomson, TCL two brands together, in the European TV market share has exceeded 10%.

International Exploration Path: "People Who Eat Crabs"

In 1997, TCL complied with the reform trend and launched a mixed ownership reform. It is one of the earliest companies in China to complete the reform of the enterprise system. After the restructuring was completed and became the chairman of the board, Li Dongsheng positioned TCL's development goals as "China's Panasonic" and "China's Samsung", which made TCL's ambition to become an international enterprise.

In 1998, TCL established a representative office in Moscow and entered Russia through brand agency and OEM. At the beginning of the following year, TCL acquired the Vietnamese color TV company Lushi Dongnai Electronics Co., Ltd. and entered the Vietnam market. Subsequently, they entered markets such as India, the Philippines, Indonesia, and Russia, gradually training their own global brands and sales networks.

By the year of 2003, TCL had fully fired in cross-border acquisitions, releasing a strong ambition for the European and American markets. In 2004, TCL successively acquired Thomson color TV and Alcatel mobile phones. A series of generous cross-border acquisitions, although sensational to the world, once pushed TCL to a huge loss of life and death. In a sense, TCL made the first person to eat crabs.

In fact, TCL launched a large-scale overseas mergers and acquisitions with a clear purpose. It wanted to directly acquire channels and customers to enter the European and American markets through the acquisition of brands. Secondly, mergers and acquisitions were one of the quickest channels for acquiring corresponding patents and technologies. At the same time, TCL also hopes to create a global industrial layout, avoiding European and American anti-dumping duties and trade barriers.

At that time, Thomson was the world’s largest company with patented CRT TV technology. TCl’s judgment on patented technology is that it can take at least five or six years. However, unexpectedly, the time for the global color TV to change from CRT to LCD era has become too fast. The change in display technology and the rapid decline in TV prices have caused huge losses to TCL's mergers and acquisitions. In 2006, Li Dongsheng wrote the famous "Eagle's Rebirth" and used the eagle to self-define and learn from his experience, leading the TCL Group to revive itself from the loss-making quagmire of cross-border mergers and acquisitions.

Li Dongsheng paid a huge amount of tuition for internationalization of TCL, but the experience gained in internationalization is not at a loss. TCL originally had little business in Europe and the United States, and Thomson's market was precisely concentrated in these two regions. It was precisely because of this acquisition that it laid a huge sales base for overseas, and Li Dongsheng dared not Invest in the upstream panel industry and open up the upstream and downstream industrial chain of color TVs and mobile phones. TCL's panel company Huaxing Optoelectronics has also become a new profitable dairy cow for the TCL Group in the past two years. The existing high-level management team of TCL mobile phone business, a considerable part of which is the acquisition of Alcatel's team, data show that in 2015, TCL mobile phone shipments have hit the world's fifth, TCL mobile phone business income of 78% from overseas.

In 2015, TCL Group's total revenue was 104.6 billion yuan, of which overseas revenue accounted for 47%. In April of this year, Li Dongsheng said in an interview with the Times Weekly reporter that in the past, TCL, like many overseas companies, was not high on the image and positioning of products, and more depended on the efficiency and cost control of products, and participated in a better price/performance ratio. competition. TCL will introduce a "Corporate Brand Index" assessment indicator in this year's corporate management assessment. In the future, for the overseas market, it is hoped that the proportion of TCL’s overseas revenue will be further increased to 50% within three years.

Industrial believers Li Dongsheng

TCL and Li Dongsheng are the epitome of the rise of China's manufacturing industry and industrialists over the past 30 years of reform and opening up.

Li Dongsheng was the first group of college students after the college entrance examination was resumed in 1978. In that year, Li Dongsheng was fortunate to be admitted to the Radio Department of South China University of Technology from Huiyang. After graduating from university, Li Dongsheng chose to return to his hometown and was assigned to the cadre of the Huiyang Regional Science and Technology Commission. However, Li Dongsheng was not satisfied with the leisure work of “a cup of tea and a newspaper”. In 1982, he joined a family of only 40. The employee's joint venture "TTK Home Appliances Limited Division" (predecessor of TCL). Three years later, Li Dong became the general manager of TCL Communications, the largest fixed-line phone manufacturer in the country. Li Dongsheng was only 28 years old this year.

In early 1993, Li Dongsheng became the general manager of TCL Electronics Group. After he took office, Li Dongsheng led TCL to enter the color TV business. The market sales volume grew rapidly and became the leading company in the industry. At the end of 1996, Li Dongsheng served as chairman and president of TCL Corporation.

In 1997, Li Dongsheng even rejected the political future of the deputy mayor of Huizhou City. He was determined to develop TCL into the most competitive and first-rate enterprise in China and to become an industrialist like Panasonic Matsushita.

Li Dongsheng, who was born in the engineering department but loves literature and history, has a broad friendship. In the circle of entrepreneurs, he and Liu Chuanzhi are very chatter. They once faced the same loss of mergers and acquisitions. They also discussed the road of property rights reform and sympathized with each other.

In the past year, after multiple holdings, Li Dongsheng has become the largest single shareholder of the TCL Group, although the Huizhou Municipal Government is nominally the actual controller of TCL.

Interestingly, Li Dongsheng, who is nearly 60 years old, still struggles on the battlefield. Learning foreign languages, doing self-media, speaking publicly, walking the Gobi, and even personally speaking TCL advertising and boarding New York's Times Square, and personally pursue the concept of "rejuvenating the country" and the spirit.

In Li Dongsheng's view, the transformation of the enterprise is first and foremost the boss's own transformation. Li Dongsheng once told reporters of the Times Weekly: "I always believe that industry is the foundation and industrial power. We choose this road is valuable, this is our team's dream, we have done a great investment and layout around industry. I believe that in this land we will plant high-yield food."

Grain Dryer

Grain Dryer,Rice Dryer,Seed Dryer,Paddy Dryer

WOSENS TECHNOLOGY Co., LTD , https://www.wosenstechnology.com