TCL Launches Subsidiary Brand XESS. This time, it aims at high-end people.

On the afternoon of September 28th, TCL's autumn new product launch began in an opera performance.
TCL has two major conferences a year: the Spring New Product Launch Conference and the Fall New Product Launch Conference. At these two conferences, TCL will launch the latest products to the outside world and communicate the latest development strategies.
At this year's new product launch conference in the autumn, TCL not only introduced a variety of products, but also launched a high-end sub-brand XESS Chuangyi. From the information delivered by TCL's conference, it is trying to transform into high-end and commercial markets.
The introduction of the sub-brand targeting elites at the autumn 2016 new product launch just concluded, the protagonist is not a specific product, but its newly launched sub-brand XESS Creation.
Li Peiwen, general manager of TCL Group Brand Management Center, used a number of adjectives to introduce this newly launched sub-brand. Many adjectives added to prove that sub-brand Chuangyi has the ability to impress “elite people”. Li Peiwen introduced XESS. "To meet the elite's pursuit of excellence."
In addition to the launch of XESS, a high-end crowd sub-brand, TCL also released a series of products from XESS, including television products X1 and X2, and the large-screen product S1. Lang Ping is an image spokesperson for XESS, a high-end sub-brand.
The new mobile phone main attack business In addition, TCL also released the annual flagship mobile phone 950, as well as Internet application services, finance, home appliances and other innovative products.
At the conference, TCL Communication launched TCL 950 and TCL 580. Among them, TCL 950, as a flagship product, focuses on providing one-stop mobile commerce solutions for business people. TCL Group Vice President, TCL Communication COO\China The president of the district, Yang Lan, focused on the “Conference Assistant” feature. This feature can achieve high-quality noise reduction recordings, and it can directly convert speech into text in both offline and manual modes. At the same time, it can simultaneously record audio and video.
In addition, according to Yang Hao introduction, TCL 950 "Pleasure Key" can achieve a one-touch touch of a custom function, which "secret letter" function can be encrypted on the WeChat. The 950 also features GlobalTuna-day roaming service, which enables high-speed network communications in 44 countries around the world without the need for a SIM card.
Another new product, the TCL580, targets the light business features of younger groups.
At the same time, TCL appliance industry also announced the air-cooled dual-frequency cross four-door refrigerator, pollution-free washing machine and F1 series, Zhixiao series of old man air conditioning, enjoy music air-conditioning and other products. In addition, TCL Financial Services launched three credit products.
The move to launch high-end sub-brands in mid-to-high end to enhance profitability and the new mobile phone's main focus on the business market reflects TCL’s intention to seize high-end markets and increase brand value.
In the past two years, under the dual pressure of the appliance market hitting ceilings and Internet companies, TCL’s operating conditions have seen a downturn.
The 2016 mid-year report, released in August this year, showed that the net profit of TCL Group's 2016 interim report decreased by 62.62% year-on-year to 606 million. From a specific business perspective, TCL color TV and mobile phone business are under pressure in both revenue and profit indicators.
TCL Multimedia's sales revenue in the first half of this year decreased slightly by 1.63% year-on-year, and its net profit attributable to parent company was RMB 83 million, down 23.9% year-on-year. In the first half of the year, TCL's main business income was 9.28 billion yuan, a year-on-year decrease of 11.8%; net profit attributable to parent company was 0.19 billion yuan, a year-on-year decrease of 94.7%.
Compared with color TV and mobile phone services, TCL's white goods business performed more smoothly. In the first half of this year, TCL Appliances Industry Group achieved sales revenue of 6.77 billion yuan, a year-on-year increase of 10.6%, and a net profit of RMB 69 million, a year-on-year increase of 13.1%.
The launch of the sub-brand XESS Chuangyi's first release of products for television and small screen products, and the new mobile phone products, the main attack business people. Li Dongsheng (microblogging), chairman and CEO of TCL Group, said, "This product (TCL 950) I think has reached the same level as foreign and domestic high-end products."
Prior to this, TCL’s main communications markets were overseas, and its products were mainly in the low-end market. Under the background of the rise of domestic mobile phone manufacturers, this development status was not satisfactory. It can be seen that TCL is trying to increase its share and profitability in the color TV market and mobile phone market by launching high-end TVs and mobile phone products.
In addition to expecting to improve business performance through high-end products during the transition period in which domestic electronic consumption is undergoing transformation, high-end transformation has also pinpointed Li Dongsheng’s expectations for Chinese companies’ transformation.
In an interview, Li Dongsheng explained the logic of launching high-end sub-brands: For the past 35 years, Chinese brands, including TCL, have mostly given people a high cost-effective impression, but it is also not feasible to stay in the low-cost stage. Higher-end product design, newer technologies and The development means that the product price must adapt to the product. "So we go to the high end and we think it is more suitable to launch high-end sub-brands to carry our new products."
He also said that the launch of high-end sub-brands is in line with TCL's global market strategic positioning.
"The global strategy must have a bigger market because the globalization of China's economy depends on the practice of Chinese companies. It must be achieved through the promotion of brands and the promotion of products."
Li Dongsheng believes that the current stage of development of Chinese home appliance companies is similar to that of Korean companies 15 years ago. “Japanese companies have replaced the European and American markets, Korean companies have risen, and in the future I believe in consumer electronics products, in most consumer products, electronic information products, China. Businesses have the opportunity to become global leaders. If we have not yet done so today, we are already on the way to achieving our goals and we will continue."

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