Hisense: everything starts from the "green" concept

At the China International Consumer Electronics Show held in Qingdao on July 8, 2010, the author felt that in addition to the Chinese domestic market, Chinese home appliance manufacturers are actively engaged in activities for overseas markets. This article will introduce Hisense's “Green Technology Innovation” and “Overseas Market Localization Strategy”.

Determine green policy as a corporate policy

At the conference of China International Consumer Electronics Show, Hisense released the “Hisense Green Development Outline” and “Hisense Green Environmental Indicators”. In the outline, the company has integrated “green development” into its corporate strategy, and promised to take the progress of “green technology” as the core policy of the company and vigorously develop green products.

The background of Hisense’s move is that China’s home appliance industry has seen new trends in the first half of 2010. In the first half of 2010, China's color TV industry structure continued to adjust to green, while striding toward the "integration of telecommunications, broadcasting and Internet and Internet three networks." In line with these trends, Hisense will focus on the research and development of “Multimedia Products” and “3 Network Convergence Products” and determine the company policy for manufacturing and marketing LED backlight LCD TV products.

Energy-saving by using LED backlight LCD TV as the axis

At the “2010 China Home Appliance Industry Development Summit Forum” held at the corner of the Expo venue, Hisense introduced the content of “Green Technology Innovation”.

According to data released by Aowei Consulting (AVC) before the forum, the sales volume of FPD TVs in China in 2011 was 45.92 million units. Aowei Consulting predicts that 2009 will be China's LED backlight LCD TV "first year", LED TV will exceed CCFL (cold cathode tube mode) backlight LCD TV sales in the next two years. In China's LED backlight LCD TV market, Hisense has occupied more than 30% of its share since November 2009, and has been ranked first.

Hisense said that its TV is a "3E energy-saving solution product" (3E=Effective+Energy+Eco-Friendly). This time, it mainly focuses on LED backlights and LCD TVs, and actively promotes the concept of “energy saving” and “environmental protection”. In terms of energy saving of LCD TVs, the following three technologies are currently being used. First, by improving the power supply design, the standby power consumption is less than 1W. Second, by using backlight dynamic control technology, the power consumption is reduced by 30%. Third, in the design of the whole system, by using high-efficiency backlights and concentrating films, the aperture ratio and transmittance of the liquid crystal panel are improved, thereby improving the panel luminous efficiency (Fig. 1).

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Figure 1: The energy saving effect of Hisense's LED backlight TV.

For example, Hisense’s Hisense LED K16 series, which was launched during the World Cup in South Africa (“FIFA World Cup”), used the above three technologies. Taking the K-16 series of 55-inch LED backlight LCD TV as an example, the energy-saving effect is as follows.

The overall power consumption of this product (average 200W when used normally) is 370W-200W=170W compared to the previous LCD TV (average value of 370W when used normally). Calculated according to the service life of 100,000 hours, the electricity consumption saved during the TV life cycle is 170W × 100,000 hours = 17,000 kWh. Calculated according to the ordinary residential electricity consumption fee of 0.55 yuan / kWh, the cost is 17,000 kWh × 0.55 yuan / kWh = 9350 yuan, equivalent to saving a 47-inch LCD TV.

According to Hisense, the company has applied for more than 600 energy-saving patents, and only 100 LED backlights have applied for more than 100. Among them, 53 patents have been accepted and 11 overseas patents.

Apply the “green” concept to all aspects of the business

Hisense was developed by the “Qingdao Radio 2 Factory”, which was established in 1969 by only a dozen people. It has become a huge telecom information industry group. On the occasion of its 40th anniversary, the company put forward the corporate philosophy of “green development” and strived for greater development. Its content consists of the following seven parts: (1) development concept; (2) industrial positioning; (3) green technology selection; (4) product design; (5) manufacturing and technology; (6) recycling of used products; All members are "green action."

In other words, in addition to the technical content of the TV design just mentioned, Hisense also promotes greening in all aspects of manufacturing, recycling and employee actions. This measure aims to pursue zero emissions of greenhouse gases. By taking this measure, in 2009, Hisense Group saved a total of 3,259 tons of coal.

This result is calculated according to the “energy consumption per 10,000 yuan of output value” (the energy needed to generate industrial output value of 10,000 yuan), which is often heard in China recently, which is 17.73% lower than the previous year. Hisense said that this "can create a profit of 24.92 million 5800 yuan."

Vigorously explore the next emerging market

In addition to adopting a green strategy for the Chinese domestic market, Hisense is also conducting business in overseas markets, and its performance continues to improve. The company's overseas strategy called the “Overseas Market Localization Strategy” has three key points.

(a) build a brand

(b) vigorously develop high-end products

(c) Construction of a new industrial base

We can take South Africa as an example to understand Hisense's strategy. Hisense is one of the sponsors of the World Cup in South Africa. The "Hisense" sightseeing car will run near Cape Town's "Green Point Stadium" on June 8. The company also actively promoted LED backlight LCD TVs. In the 36 luxury sightseeing cars, the most advanced Hisense battery is set up for repeated play. The company is one of the largest sponsors of the World Cup and has provided more than $4 million in sponsorship to South Africa.

Since 1998, Hisense has set up a factory in South Africa to produce TV. It has established a sales, logistics and after-sales service system covering South Africa. Currently, more than 95% of employees are locals, the company has more than 10% of the South African TV market, and more than 5 million households are Hisense customers.

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