Xiaomi is planning to enter the white goods market by adding new product lines, namely air conditioners and washing machines to its portfolio
China based Xiaomi Corporation announced that it has bought 65,168,803 shares, or 0.48 percent of TCL Corporation, from Shenzhen Stock Exchange’s secondary market. The brand is famous for its affordable range of smartphones and smart TVs in India.
TCL on the development said, “Xiaomi’s investment in our shares will strengthen the collaboration between the two companies, and therefore help to build a closer strategic partnership. The two companies have shown a strong presence in their business. We believe Xiaomi’s strong product development and superior R&D capabilities, combined with our rich supply chain and production experience, will form a strong industrial synergy effect. Therefore, we can jointly promote the rapid growth of China’s smart home appliance industry and expand into the global market.”
Xiaomi planning to enter white goods market
Xiaomi, as per a officials statement, is planing to enter the white goods market. It may by adding new product lines including air conditioners and washing machines to its portfolio. Xiaomi TV had surpassed Samsung to become India’s largest smart TV brand, according to a report releases by IDC on India’s smart home market
TCL, as per the statement, will shift its focus to semi-conductor displays, materials and emerging businesses. TCL’s Huaxing Opto-electronics TV panel ranked fifth in the world in the first three quarters of 2018.
Home appliance business, in year 2018, was a new growth engine for Xiaomi. Xiaomi TV became China’s largest smart TV brand in 2018, and its global sales increased by more than 350 per cent year-on-year, according to its Q2 results.
Strategic cooperation agreement with TCL
Xiaomi has also signed a strategic cooperation agreement with TCL to carry out joint research and development on the integration of high-end basic components of intelligent hardware and electronic information core. The agreement means both parties will innovate the application of new device technology in the next generation of intelligent hardware, to establish cooperation and joint investment in the core, high-end and fundamental technology fields in order to constantly improve Xiaomi’s global customer experience. Besides, Xiaomi is interested in forming a strategic cooperation with TCL Corp. on core, high-end and fundamental technology fields at a capital level.
Xiaomi founder, chairman and CEO Mr. Lei Jun said, “I would like to express my admiration for Mr. Li Dongsheng, the Chairman of TCL Corp., because under his leadership, TCL has flourished and is now one of the world’s leading enterprises in technological innovation and operational efficiency. The acquisition of TCL’s shares and the strategic cooperation with TCL in various fields, including joint research and development and supply chains, are highly beneficial to Xiaomi’s further exploration and growth in its home appliance business. In 2019, Xiaomi is determined to introduce amazing home appliances that are honestly priced.”