Hello, sense! The Chinese machinery and electronics brand Hisense are entering Ukraine

The Hisense is represented in more than 80 countries and ranks third in the world on TV sales terms.

On Friday, June 23, there was a solemn the Chinese hardware and electronics manufacturer Hisense products presentation, which will soon begin to be sold in Ukraine. According to the company, the brand takes the third place in the world on TV sales terms, and it is the undisputed leader in this category in China, Australia and South Africa. In addition to televisions, the Hisense produces a products very large range: the smart-phones and gadgets, the medical equipment, the technology for “smart homes” and “smart cities”, and much more. The company’s revenue for the past year was $14.5 billion, but so far the brand was not represented in Ukraine. The company decided to start going to our country with the TV sets sale, but, as Nancy Zhang convinces, the Hisense regional director in Eastern Europe, assures, the manufacturers from China are attentively studying the selling possibility other equipment in Ukraine. The official distributor Hisense commercial director in Ukraine – the company Smart Line – Vladislav Volzhin told RAU about the brand’s plans on the Ukrainian market, the product features and the sales channels, the potential buyers.

– What are your goals for the Ukrainian market, what do you want to achieve?

– The Hisense takes the third place in the world in TV sets sales terms, also our global goal, no matter how ambitious it sounds – to enter the top-3 TV vendor in Ukraine. The potential is, therefore, we confident in the success.

– Why did you decide to entry Ukraine right now?

– There is a favorable situation in the Ukrainian market: there are the Korean brands (in my opinion, overpriced), and there are the Chinese manufacturers represented in the lower price segment. And the average price category, remains relatively free and gives the opportunity to enter the market of new players, due to the positions weakening of such players as Phillips, Sharp, and a Korean company’s number.

– In which price range we will be presented?

– From flat-panel TVs, our cheapest model will cost about 6500 UAH, from analog TVs – even cheaper, 5500 UAH. There is no upper limit – there are a premium models lot that differ in functionality and other characteristics. But all our models will be 15-20% cheaper than similar to the televisions Korean manufacturer’s capabilities.

– So you think that the solvent demand has already recovered in Ukraine, because even the cheapest model costs more than the average salary in Ukraine?

– I cannot say that demand has recovered completely – the Ukraine is going through a very its history difficult period. But I’m sure that on the price, quality and functionality ratio Hisense products will quickly become an Ukrainians fans. In this respect, we are clearly ahead of our competitors. Therefore, we decided to entry the brand right now.

– Where will your products be presented?

– We are considering three main sales channels. Firstly, this is a large retail chain, such stores as Comfy, Foxtrot, Eldorado, do not forget about the Epicenter. Secondly, these are the largest online-stores, such as Rozetka and Allo. Thirdly, it is a regional retailer, whose role, in my opinion, is often underestimated. We are negotiating with all these directions.

– Will you open your own online-store?

– No, we will be represented in Ukraine only by an information site where all information about our products will be posted. We do not plan to trade directly.

– Will the pricing policy for traditional retail and online-destinations be different?

– We cannot and will not dictate prices to our partners. Maximum is to give advice and recommendations to ensure maximum sales. But not anymore is. As for your question: the pricing policy will be the same for online and offline.

– Will each of the chain get the whole products range?

– In online stores will be presented our entire range, imported to Ukraine. As for chain operators, it is possible that some models will be exclusively represented in a particular store. Everything is decided in the negotiations.

– Are not you afraid that after the Hisense learning, Ukrainians will buy TVs in foreign online-stores?

– We are not afraid. Firstly, the technology functionality for each country is configured in its own way, and it is by no means a fact that a TV-set intended for Germany will be able to work fully in Ukraine. Secondly, there are inevitable problems with the customs clearance, the delivery, the configuration, the guarantee. Therefore, I do not think that the consumer will benefit greatly, having bought, for example, on the Amazon, the Hisense technology, developed for the US.

– Will you represent other branding techniques except for TV sets?

–  While we are concentrating on TVs: in this segment, our positions are the strongest. As for the other technology: we will look, evaluate the perspective, analyze. So far I can say what the next step will be: we will supply the refrigerators and the air conditioners, other large and small household appliances. The assortment rest – the smart systems for home and city, the medical equipment – is not yet planned to be produced: there is no formed market.

– What brand promotion channels do you plan to use?

– Our experience shows that the most effective for increasing sales are two channels – in store, that is advertising directly in stores, and digital – that is, promotion on the Internet. The main attention will be given to its, and to outdoor and TV-advertising, which is more important for brand recognition, we will address, perhaps later.

– Who are you targeting: the business customers or the consumers?

– We are targeting on the consumers. So for now, we set a goal to win the end users loyalty, building the relationships with the segment b2b takes time.

– Will Smart Line represent only the Hisense in Ukraine, or can you expect other brands release from the PRC?

– To successfully entry the Hisense, we will concentrate only on it. And then we’ll see, perhaps, we will represent other producers, whose interests do not overlap with our current partner.

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