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All-round localization, joint development make TCL successful in Vietnam

(Xinhua) Updated: 2015-05-27 17:05

HO CHI MINH CITY - To gain big market shares in the global market and the Vietnamese market in particular, Chinese electronics giant TCL has focused on all-round localization strategies to tap deeply into Vietnam's economy for joint development.

TCL, which has ranked the third in the Vietnamese market in terms of TV sales, has spared no efforts in building up and promoting high-quality brands, to manufacture and then sell first-grade products with preferential prices, to localize its products as well as its human resources, and to prioritize corporate social responsibility, Deng Yanan, General Manager of TCL Vietnam Corporation, told Xinhua recently.

TCL Vietnam's General Manager stressed, "Localization has actually helped TCL have a strong foothold and sustainable development in the Vietnamese market... Our localization strategy has not been limited to capacity of factories, distributors or salespeople, but has expanded to human resources and corporate social responsibility."

After churning out products which have become more and more modern and suitable to Vietnamese people, promoting them and selling them at competitive prices and offering good after-sales services, "we have broken down Vietnamese consumers' prejudice that Chinese goods have poor quality," Deng said.

"That is an invaluable experience during our 16-year-penetration into the Vietnamese market," he noted.

When penetrating into foreign markets like Vietnam or any other markets, all Chinese enterprises have to experience periods full of tough competition in terms of price, product quality and brand image among other issues. Right after setting foot on Vietnamese soil in 1999, TCL set targets of developing its own brands, own distribution networks and own technologies, Deng said.

Now, TCL Vietnam has over 200 authorized dealers and distribution networks of more than 3,000 outlets throughout the country. At over 200 the first-class dealers, TCL products are displayed in separate zones. The firm also has over 150 facilities nationwide to provide after-sales services. "TCL has reached a full coverage of the Vietnamese market, and has become a favorite brand of Vietnamese consumers," Deng said.

TCL Vietnam has over 500 staff, most of them are Vietnamese, the general director said, noting that its Chinese personnel are fewer than 10. At present, the firm's factory employs over 250 people, including no more than four Chinese nationals. Vietnamese people assume all the important positions.

Regarding product distribution networks, TCL Vietnam also has over 250 staff, all of them are Vietnamese, excluding those holding the positions of general manager, and heads of finance and market departments.

Besides its headquarters, TCL Vietnam has five representative offices in Hanoi, Hai Phong City, Da Nang City, Ho Chi Minh City and the Southwestern region. Among the five representative offices, only the head of the Hai Phong office is Chinese.

"In addition to supplying new products to the market, we have created jobs for over 500 local people. We have trained many Vietnamese staff so that they will become managers or qualified workers," TCL Vietnam's General Manager said proudly.

TCL Vietnam has also participated in social activities and charitable endeavors so frequently and so effectively that local authorities have recognized the firm's contribution. "Regarding localization's contribution to brand development and recognition, what really matters is that the brand becomes a member of society. Business development does not necessarily means increasingly bigger revenues, bigger contribution to the state budget, more and more new products, but includes a bigger contribution to some social fields such as healthcare and education," Deng emphasized.

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