China Brand Seeks Top 5 Position in Malaysia
THE Japanese were classy. The Koreans added a touch of class to it. Not to be left out, the Chinese entered the picture and produced a classic.
No matter what class they belonged to, one thing is for sure – the television (TV) is here to stay and TCL Corp is happily sitting on top of the pile.
“TCL, you say?” someone asked. “It sounds more like a company from Kepong.”
Far from it. TCL is one of the biggest consumer electronic groups in China. Founded in 1981 in the southern city of Huizhou, Guangdong Province, TCL did not go big into manufacturing TVs until 2004 when it merged with Thomson SA, then the fourth largest global consumer electronics enterprise.
Thus, TCL-Thomson Electronics was born and it took the world colour TV business by storm.
“Out transformation was amazing,” Dr Terry Yi Chunyu told Malaysian journalists on a recent visit to TCL plants in Shenzhen.
“We sold 1.7 million sets in 2003, 16.7 million sets the following year, but in 2005 (a year after the merger), we sold 10 million sets in China and exported 13 million sets, five million of which went to Europe and the US.”
Today, TCL-Thomson Electronics has 10 manufacturing bases, over 20,000 marketing outlets, employs 29,000 workers, including more than 1,000 research and development talents in five centres worldwide.
Although TV is the group's core business, it has also formed units focusing on multimedia electronics, telecommunications and digital electronic business, and electrical home appliances.
Since the group started engaging in original equipment manufacturing for some of the brands in the mid-1990s, its overseas businesses have covered more than 50 countries, including the US, Europe, Australia, Russia and South-east Asia.
“We also have sales offices in India, Vietnam, the Philippines and Singapore,” Yi said.
“Since the rapid development of Asean markets provides advantages for the growth of Chinese enterprises in Asia, we decided to enter the Malaysian market.”
Thus, TCL Electronics (M) Sdn Bhd was registered in 2004. Working with Scott & English Electronics (M) Sdn Bhd, a unit of DRB-HICOM, TCL has high hopes of making its presence felt in the country.
“Our aim is to make TCL the top five brand in Malaysia within five years,” Yi said.
TCL has established a presence in the region as far back as 1998 when it took over the Vietnam manufacturing base from Luks Group.
“Besides its market size and vast potential, TCL chose Vietnam as the first step of internationalisation because of its close proximity, similar economic development and consumer backgrounds,” Yi explained. “Even if it did not work out, it would be easy to withdraw.”
Undoubtedly, it was a wise decision. Although it was not easy in the beginning to break new ground where Japanese and Korean brands had long existed, TCL's persistence and its fine tradition of establishing a close relationship with clients began to pay off.
From Vietnam, TCL turned its focus on Asean and cross the European threshold in 2002, acquiring Germany's Schneider, American group Govideo before merging with Thomson.
“We can clearly see the footprints of TCL's internationalisation – from easy to difficult, from far to near, with proper sequence in development, rhythmic expansion, merging and restructuring, and drawing a global layout.
“Now, with 16 subsidiaries globally, TCL has become a truly international giant,” Yi said. (Source: The Star, Malaysia )