For Hisense, all eyes are on US profile

In 2009, China's Hisense Electric Co was trying to get its flat-panel televisions sold at HH Gregg, a chain of home-appliance stores mainly in the US South.

But with no brand recognition among American consumers, the company only persuade the retailer to sell three relatively small models.

Lawrence Li, CEO of Hisense USA Corp, is focused on increasing the company's brand recognition in the US. The subsidiary is moving toward a 50-50 split between producing its own electronics and appliances and serving as a contract manufacturer for other firms. [Photo/China Daily]

Both the Chinese manufacturer and HH Gregg were uncertain about the sales prospects for their new, albeit tentative, alliance. To their surprise, the Hisense televisions sold quickly. Within a month, the retailer had sold over 10,000 of each of the three models, according to Hisense USA Corp CEO Lawrence Li.

Building on that strong launch, HH Gregg introduced more smaller Hisense TVs over the next few months, then several models of midrange to high-end "smart" Internet-enabled and LED televisions.

"Nowadays, many US national retailers and consumers have realized that Hisense is not another Chinese brand," Li said in an interview at the offices of the company's US subsidiary in Suwanee, Georgia, less than an hour's drive from Atlanta.

The three-story, red-brick building houses a 40-member research-and-development team, as well as sales and marketing departments.

Li acknowledged the stereotype of Chinese-made products as cheap and poorly made. But Hisense, he said, exemplifies a new vision of Made in China that combines high quality with advanced technology and even cutting-edge innovation.

Established in 2001, Hisense USA is a subsidiary of Hisense Electric, a home-appliance and electronics maker based in Qingdao, in eastern China's Shandong province. Last year, the parent company had $11.8 billion in worldwide sales.

Known as one of the world's biggest makers of flat-panel TVs, the company also makes appliances such as refrigerators and heaters, and is emerging as a leader in the manufacture of mobile handsets.

This year, Hisense was honored with a Value Innovation Award for its tablet-like ITV2 product at the Consumer Electronics Show in Las Vegas.

With about 60,000 employees worldwide, Hisense has R&D centers in Qingdao, Shenzhen, Shunde and Beijing, as well as in Suwanee and Europe. Its non-Chinese manufacturing operations are in South Africa, Algeria and Egypt, with sales offices in the United States, Europe, Australia, the Middle East and Southeast Asia. It exports to over 130 countries and regions.

But the company's foray into North American 11 years ago was met with suspicion.

"People here used to look at us through 'colored glasses'," Li said, due to their experience with Chinese products.

"Though they knew about Hisense as a leading Chinese manufacturer, they never saw a Hisense TV in their market."

To build its reputation, the company started as an original-equipment manufacturer, or OEM, for recognized brands - a strategy emphasized from 2001 to 2008.