"On the vast sea, there is never a shortage of wind and waves, and there is no shortage of Chinese brands that have stepped on the wind and waves."
On July 4, BYD held a ceremony to complete the completion of its Thailand plant and roll off the assembly line of its 8 million new energy vehicles. Prior to this, BYD released a video paying tribute to some of the Chinese brands that have gone global. The previous inspiring words are excerpted from the tribute video.
The former Chinese brand was "stuck" in key technologies. Huawei, DJI, and ByteDance, represented by mobile phones and the Internet, have been treated unfairly overseas many times. But even so, Chinese brands still rise to the challenge, grow tenaciously under the siege, achieve key technological breakthroughs, and choose to go global.
Even Li Dongsheng, founder of TCL, a mainland technology company, emphasized at the recent summer Davos forum that "if you don't go to sea, you will be out". It can be seen that it is the general trend for Chinese enterprises to go overseas.
But have you ever wondered why Chinese companies need to go overseas? Through a simple analysis, it can be roughly divided into the following four points:
1. Break through bottlenecks and expand new markets. Although China's domestic market is huge, with the development of the economy and the intensification of competition, the market is gradually becoming saturated. Overcapacity in many industries has led to extremely fierce competition between enterprises and the continuous compression of profit margins. In this case, going overseas has become an inevitable choice for Chinese enterprises to seek new growth space and profit sources.
2. Enhance core competitiveness. European and American companies are often different from Chinese companies in terms of technological innovation and management. Chinese enterprises can acquire advanced technology and management experience and enhance their core competitiveness through cooperation with local enterprises, mergers and acquisitions, etc.
3. Integrate into the global industrial chain. With the in-depth development of global economic integration, the industrial division of labor is becoming more and more refined. Chinese enterprises can better integrate into the global industrial chain, give full play to their comparative advantages, and enhance their position in the global industrial division of labor.
Fourth, establish the international influence of the brand. In the international market, brand is one of the core competitiveness of enterprises. Chinese enterprises going overseas can enhance the popularity and reputation of their brands and establish a good international image by promoting their brands on a global scale.
Among the first batch of international companies in China, TCL mentioned above is one of them. TCL goes global with the development strategy of "globalization is localization".
In 1999, TCL acquired Lu's Dong Nai factory in Viet Nam and began to enter the Viet Nam market. At the beginning of the 21st century, with a TV product with lightning protection and strong signal reception, it successfully won the Viet Nam market. When I first arrived in Viet Nam, employees rode motorcycles to sell products one by one, and now it is the first tier brand in the local market. In 2004, in North America, TCL acquired Thomson's global television business, followed by the formation of a North American subsidiary to expand the market.
Since then, TCL has provided global consumers with a more diverse and higher quality-to-price product choice. For example, in the category of TV, TCL has brought consumers a better visual experience with continuous breakthrough technologies, such as Mini LED display technology and TCL global halo control technology.
The reason why there are so many technological breakthroughs is inseparable from TCL's investment in technology research and development in the past 15 years.
After accumulating relevant experience overseas, TCL launched Huaxing Optoelectronics in Malaysia in 2009. Up to now, TCL Huaxing has 9 panel production lines, 5 module factories, and an investment of more than 260 billion yuan, becoming one of the world's leading semiconductor display companies.
During this period, TCL became one of the first TV manufacturers in China to develop quantum dot technology. TVs with quantum dot technology have higher color gamut values, color purity and color accuracy, bringing consumers a vivid picture that will not fade for a long time. At the same time, TCL is also the first manufacturer to enter the research and development of Mini LED display technology. Mini LED display technology has become the third mainstream display technology in addition to OLED and LCD with better color, brightness, contrast and lifespan, and it is also the most suitable display technology for large-screen TVs.
Importantly, in response to the halo problem of Mini LED TV, TCL has developed "TCL global halo control technology". Combined with five technologies, including TCL's self-developed lens technology, the combination of software and hardware realizes the precise attack on halo and solves the long-standing halo problem in the industry.
Looking back at the TV market in 2023, TCL has won the second place in the world and the first in the nation in one fell swoop through the technology accumulation of the past 14 years, with a shipment of 25.26 million units, and is favored by consumers all over the country.
Although foreign-funded enterprises still occupy an important position in the global economy, the pace of Chinese enterprises going overseas has never stopped. Chinese companies that have risen in the face of adversity, with their own efforts and wisdom, continue to break through the predicament and become stronger and stronger in the global market.
In the future, with the continuous enhancement of China's economic strength, it is believed that more Chinese enterprises will go abroad and shine more brilliantly on the stage of the world economy. Let's wait and see how Chinese companies rise and take off in the global market!