Tcl handed over a beautiful financial statement

February 2014, Tcl handed over a beautiful financial statement, net profit growth of 126.7% per cent, to 2.89 billion yuan. One of the slightly embarrassing is that Tcl, one of the main industries, multimedia group appeared a small loss. In this context, TCL began a so-called history of the largest strategic adjustment, TCL proposed to the Internet transformation, that is, focus on "smart + Internet, product + services." ”。

In terms of corporate vision, TCL even proposed that within five years, the profit contribution from products and services accounted for 50% respectively. At this stage, Tcl's profit composition is almost entirely composed of products. What prompted the traditional appliance communications manufacturers to make changes? What aspects of TCL will this change involve? Where will this change take TCL? Sohu It interviewed Tcl chairman Li, Tcl Multimedia Shanyi, Tcl Communications Wang and many other executives, trying to find the answer:

Which aspects of the transition?

To understand this problem, one must first know the existing structure and product line of TCL Group. TCL has four listed companies, the top ten business sections. This strategic adjustment is mainly aimed at the existing products and service system, TCL Communication Group and Multimedia group. The transition is more a consolidation and expansion of existing business.

TCL consists of two major parts of products and services, of which the product is divided into two large chunks, namely, terminals and upstream. In the end of this piece, TCL color TV Annual sales of 17.66 million units, mobile phone sales of 55.2 million, washing machine year 1.26 million, air-conditioning 4.5 million sets, refrigerators 1.09 million units. And the upstream part, is the LCD panel, that huaxing photoelectric. From the current data, huaxing annual output can reach 21.62 million, the scale of the world's fifth.

Services in this field, in fact, Tcl also has a layout, the main currently has 3, one is TCL rtvu online education, there are currently 5 million students, another is Huan network, the data show that there are 4.6 million active users, about 1.9 million users, in addition Tcl also has 40,000 franchisees and partners.

Why change?

TCL Brand Promotion Department Assistant President Liang, said the group for the transformation of the preparation for more than half a year, but the thinking is in the six months ago, which has both internal and external causes. In terms of external factors, it is mainly caused by three elements: price war, homogenization and the impact of new business models.

The price war is due to capacity growth, the market oversupply, the impact of the new business model refers to millet, music, Lenovo Cross-border marketing, and huge; homogenization is because of home appliances, mobile phones, color TV Industry foundation function mature, performance relative surplus

How to transform?

According to Li's understanding, the significance of the transformation is to rob the entrance and operating users. According to TCL's plan, TCL plans to become the world's top three smartphone and smartphone in five years, accumulating 100 million households + 100 million mobile users, and the profit contribution from products and services accounted for 50%.

From the current market, TCL's profits are almost entirely composed of products, which means that the future TCL business will be very big changes. This for Tcl existing products and services are put forward different levels of demand. Among them, TCL Communications will be with the cloud strategy to coordinate the transformation, and TCL Multimedia will be the entertainment of the policy to deal with the transformation.

Specific to the product level, in the TCL Design Blueprint, the future group of products will have four categories, respectively: Intelligent health appliances, smart TV and set-top boxes, smart home and home cloud, intelligent mobile terminals and wearable equipment.

Services in the future bear the profits of TCL half of the contribution, how to achieve this goal, TCL will focus on the user's services in the four major business groups, which are: content, application services, O2O and financial services. The application service refers to the Huan net technology, OTT business and global broadcasting business, while financial services refers to finance companies, UnionPay payments, microfinance, third-party payments and consumer credit; O2O is mainly involved in the integration of line online, business focused on Guest voice service, speed must reach, cool friends, ground experience shop and store Content is Mmax, Tcl culture spread, game, Confucius Institute of the network Hoppen education.

Tcl hopes to contribute half of its profits to the group through the service modules described above. It should be pointed out that some of the business is still in the planning, and not on the horse. For example, third party payment, such as TCL Culture Communication Company.

Written in the last words:

For the reform, TCL executives also said they would face challenges the biggest challenge is 2 parts, one is the adjustment of the concept, from the traditional thinking to the internet thinking, which requires people to consider the angle of the problem will change, this challenge is very big; the second is the adjustment of the organizational structure of the company, the integration of resources, KPI's redesign, etc. For example, does an executive have to be balanced to ensure that the profits of existing products are important, or to look to the long-term growth potential of the business? The latter pattern and the Millet music view some similarities may have the impact to the present profit.