Hisense Electronics Co Ltd, China's largest TV maker by market share, is banking on more investments in innovation and smart factories to gain an advantage over global rivals like Sony Corp and LG Corp.

To achieve its goal, Hisense has formed an expert team comprising researchers from Japan and South Korea to update its TV technologies and also outlined huge investments for its smart factory to increase productivity.

"Advanced technology is the key to business success no matter how the market is changing," said Zhou Houjian, the company's chairman.

In 2011, many TV manufacturers from Japan and South Korea launched models of organic light-emitting diode TVs, which are thinner and lighter, posing challenges to Chinese TV makers. 

Cao Jianwei, deputy general manager of the Qingdao-based TV maker, said that once the OLED technology is widely used in the TV industry, the Chinese market will be dominated by foreign competitors, leaving no room for domestic TV producers.

"We have no choice but to compete with them and upgrade our technology with better products," he said.

Hisense's years of efforts paid off this year, with breakthrough made in a new technology called ultra light-emitting diode, which features a high degree of color accuracy and wide viewing angles. It is also an environmentally friendly technology.

"ULED is better than any current technology, and its contrast ratio can reach a million-level scale while the old technology is only a thousand-level," said Cao.

For Hisense, innovation is not only something that helps the company stand out in the competition at home, but has also brought international recognition.

Its products have been sold directly to North American retailers such as HH Gregg's parent, Gregg Appliances Inc, Best Buy Co, Wal-Mart Stores Inc, Costco Wholesale Corp, and Canadian Tire Corp through online sales.

In 2014, the company's export value rose to $2.6 billion, and value of products with its own brand - Hisense - has achieved an 18-fold growth in seven years, the company said.

Despite the decline in China's exports of televisions, Hisense reaped an18 percent growth in exports in the first two months of this year.

The company, which also produces refrigerators and air-conditioners, has sped up efforts in growth in key overseas markets including the United States and Europe.

"Currently our business growth is mainly boosted by the domestic market, but in the long run, Hisense's development lies beyond China, so we need to keep exploring the foreign market," said Zhou, the chairman.

For most Chinese companies, entering the established markets like those in the US is proving a challenge. But the company is eyeing the goal.

To make that happen, Cao said that the company needs to bring out the best products and react quickly to the market.

Actually Hisense is converting from being a follower of Western technology to one that is led by innovation and leadership.

The company plans to invest 200 to 300 million yuan every year in a smart factory that it built last year to boost production and efficiency.

More than 1,000 robots will be used in the factory to replace human workforce this year, the company said.

"It will help enhance our competitiveness in the global market," Cao said, adding that the annual output has increased from 8 million to 11.1 million thanks to this new type of manufacturing intelligence in the smart factory.

With about 70,000 employees worldwide, Hisense has manufacturing operations in South Africa, Algeria and Egypt, with sales offices in the US, Europe, Australia, the Middle East and Southeast Asia. The products of Hisense are available in more than 130 countries and regions.

Contact the writers at xiechuanjiao@chinadaily.com.cn and lvchang@chinadaily.com.cn

(China Daily USA 06/03/2015 page16)