Hisense South Africa Dominates Market
Share in Refrigerator and Television Sales Value
Authoritative data research, conducted between January and December 2017, ranks Hisense South Africa as the market share leader in refrigerator sales value, having increased by 2.7% over the period to 24.6%. Hisense South Africa was also ranked second for the total number of units sold in 2017, up 1.9% from 2016. With this in mind, it is no wonder that four Hisense models made the 2017 Top 10 Best-Selling Fridges list. In terms of television unit sales, Hisense South Africa achieved a significant 22.8% market share in 2017 – once again securing the number one ranking in the industry.
In the first three quarters of last year, South Africa’s gross domestic product (GDP) grew by only 1% and imports decreased by 1.1%. As it stands, the domestic market is characterized by poor levels of demand and consumer purchasing power. As a result of the economic downturn, South Africa's overall market sales value decreased by 5.1% in refrigerator sales and 5.2% in television sales.
Within this harsh environment, some competitive brands implemented direct price cuts in order to secure market share. Hisense South Africa, however, did not follow suit. Instead, the brand adopted a flexible and diverse sales strategy with a focus on supporting business growth to avoid falling into a price war. The result: stabilizing product price points and securing the top refrigerator and television sales value rankings in the industry.
Success in this regard was achieved by implementing the following strategies:
Customer structure optimization. The brand’s sales strategy was adjusted as and when required, strategic customer relationship maintenance processes was were strengthened, and the ELITE CLUB Project was continuously promoted to high-end customers. Hisense South Africa also customized sales strategies for the brand’s range of channels. For example, the strategy to attract customers in order to buy high-end products was the introduction of package deals, with smaller items advertised as providing added value.
Product structure optimization. In order to promote high-end products and enhance the localization of products within the local factory, Hisense South Africa paid close attention to product structure optimization and the timely adjustment of product layout. The total high-end refrigerator and television sale volumes in 2017 were 36113 and 4402 units respectively. High-end sales accounted for 14.4% of total sales, up by 2% year-on-year. The cumulative price index of refrigerators in 2017 increased by 3, to 89. The cumulative price index of televisions in 2017 increased by 6, to 91. Going forward, the product structure will be optimized in advance.
Marketing and Publicity. The brand increased its focus on strengthening its marketing and publicity efforts to improve its image. In 2017, Hisense South Africa sponsored the top local rugby club, the Lions, which increased brand exposure by leveraging the team’s significant influence. During November, Hisense launched World Cup-themed branding in 11 of the country’s major shopping malls with the aim of building the brand’s reputation as both trustworthy and global. The brand also increased the number of high-end shopping centers as main sales channels by 11, creating better displays and ensuring an improved shopping experience overall.
In the fourth quarter of the year, which is considered the most important for annual sales, Hisense South Africa's performance was absolutely outstanding. Flexible sales strategies saw Hisense South Africa achieve the highest sales figures for Black Friday, new store openings and Christmas campaigns.
High-quality products, exceptional customer service, a reasonable customer structure, strong brand image and a comfortable in-store purchasing experience all played a part in the high degree of consumer satisfaction attained, making Hisense South Africa the new leader in the South African consumer electronics industry.