Hisense SA wants to expand its business locally and will shortly unveil a mid-tier smartphone range, as well as more technologically-advanced televisions.
This move forms part of its new growth strategy, named "G to G", which seeks to take on its competitors in the local market.
Hisense SA deputy GM Ebrahim Khan explains the company has refined aspects of its business model and offering to enable it to compete more aggressively. "Our focus is on three pillars - great products, great service, and great value - and we aim to be leaders in each of these areas."
Khan says the group is increasingly internationalising its offerings, and is adding its Infinity smartphones to its portfolio locally. He notes the devices are a focus point for the group.
Hisense has a huge product portfolio in China and is bringing some of these items to SA, says Khan. He explains the selection is based on whether the products are viable, and Hisense aims to keep growing its business in the double-digit range.
Although the group wants to expand aggressively and be more competitive, Khan says this will not be at the cost of keeping the core of the company sound. He says the new ranges are an "effective" way to grow the top line.
Expansion plans
In SA, Hisense has mostly focused on televisions and fridges. In the middle of last year, it opened a new R350 million factory, which employs more than 300 people who assemble, from scratch, smart-flat TV screens, fridges and other consumer electronics. Hisense entered the South African market in 1996.
Khan says the group moved into smartphones last year and has already made some available locally.
Hisense sees SA as a core market as a stepping stone to target Africa, where Khan says demand for the mid-tier range of smartphones - priced between R2 000 and R5 000 - has often been ignored.
"The South African market is a key one for us - not just for growth within the country's borders, but also as our first steps for growth across the continent. Our investment locally is substantial - as seen by the recent opening of our manufacturing plant in Cape Town."
Khan says the company will also look into making the phones at its Cape Town factory, but this would require greater tariff protection and enough volumes to justify a production line adaptation. He explains the current tariff structure for phones is minimal.
The group has planned an expansion of its local manufacturing capacity in the near future.
New televisions and smartphones will be released to the market during the year, says Khan. The company will provide televisions with built-in digital decoders, full HD sets and boxes with direct LED screens, he adds.
The television sets are already in manufacture and will start hitting shelves from this quarter, although the roadmap for smartphones is less clear as it is a business Hisense has only targeted for a year, says Khan.
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