"The symbol of Japanese manufacturing" Kameyama City will reluctantly lose the brand that it is proud of - AQUOS. Recently, this news triggered the heated debate in the Japanese public opinion. Sharp's new president, Dai Zhengwu, accepted an interview with Japanese media that he would withdraw the TV production line from Japan in 2018.
On March 16th, Sharp Public Relations Department Hirano took a response to the Daily Economic News reporter, saying that as a consideration of the “New Sharp Strategyâ€, it has decided to transfer uncompetitive businesses in Japan to Hon Hai Precision and overseas cooperation companies, but the specific location Undecided. It is worth mentioning that Hirano did not make a clear response to the above Japanese media reports.
"If you do not reduce production costs, sales will fall and you will not be able to compete with your competitors." Hirano said in an e-mail response to the reasons for the business transfer.
According to statistics from the daily economic news reporter, Sharp, a 100-year-old Japanese “old shopâ€, has nearly half a hundred LCD TV production operations. Japan’s domestic market has been its main production base. In the process of the transfer of the Sharp TV business, the "next stop" of this TV century-old store has attracted much attention in the industry.
AQUOS, the town store's treasure, or withdrawing from Japan on March 15, the Japanese media Asahi Shimbun reports that the current President of the Sharp, Dai Zhengwu, has announced Sharp's new trend, saying that Sharp will withdraw its LCD TV production line in Japan in 2018. The production of AQOUS brand will be handed over to Hon Hai Precision. His reasons are very straightforward: Sharp LCD TVs will not be able to sell if it is not changed to overseas production.
The Nihon Keizai Shimbun reported that Sharp's small and medium-sized TV assembly project is planned to be moved to Southeast Asia and other locations. However, all are currently in the research stage and will not end television production in Japan.
In the industry, Sharp is recognized as the "father of LCD TVs." In 1987, the Type 3 LCD TV developed by the company was known as "turning liquid crystal into reality" with unparalleled clarity and vivid colors. In the 21st century, Sharp launched AQUOS, the “Town of the Shop†brand.
Relying on the superiority of this product in core technology and high design investment, AQUOS has enjoyed a world-class reputation and once sold more than 10 million units per month. Kameyama City, where it was originally produced, was once known as “The Kameyama of the worldâ€.
For many Japanese mainstream media reports, on March 16th, the headquarters of Sharp Japan responded to daily economic news reporters that for the “production†of the “New Sharp Strategyâ€, Dai’s policy was: “To In order to increase competitiveness and make Japanese factories highly intelligent, Sharp decided to transfer the uncompetitive businesses in Japan to Hon Hai and overseas partner companies, but the exact location is uncertain."
In addition, Sharp said in response that Kameyama Plant is currently researching and setting up fully automatic production lines. In addition, LCD panels for some sizes of TVs will continue to be produced. The most advanced Sharp 8K TV is still being developed at the Tochigi Factory, and other development departments are still retained domestically.
Regarding the reasons for relocating the business for any reason, Hirano stated in its reply that “If there is no price-competitive product in Japan, if the production cost is not reduced, the sales volume will decline and it will not be able to compete with competitors.â€
Did Dai Zhengwu start his "big counterattack" at the helm?
Prior to Sharp's acquisition of Foxconn, its strategy has been conservative for many years, sticking to its homeland in Japan, and overseas markets are shrinking. After the acquisition of Sharp, Mr. Gou appointed Dai Zhengwu as Sharp's new president and implemented a series of reforms on Sharp: divest and restructure the inferior business, retired redundant staff, repurchase the headquarters property, and resume the supply of higher quality LCD panels to the European brand UMC.
Prior to this, Sharp had already withdrawn from the loss-making Americas and Europe television business, and licensed the brand to China Hisense Group and Slovak TV maker Universal Media Corp. For Sharp on the verge of bankruptcy, its success or failure is closely related to LCD TVs.
After sending letters to employees vowed to carry out drastic reforms on Sharp, Sharp has successively spread out its actions in expanding overseas operations: investing 10 billion yuan in panel factories in mainland China and setting up an R&D center in Shenzhen to enter the ASEAN market. In February of this year, Sharp also proposed a plan to set up a large-scale LCD panel factory in the United States. In the face of sharp price hikes in LCD panels, it cut off its cooperation with South Korea’s Samsung, a competitor, and is preparing to attack.
Today, Dai Zhengwu's aggressive tactics leave the impression of a "great counterattack." It is undoubtedly of great strategic importance to carry out a partial transfer of TV production business at this node to reduce costs.
There are Japanese media analysis that due to the aging of production equipment, Japanese factories have been unable to compete with Chinese and other overseas factories in terms of efficiency. Japan should focus on product development and testing, as well as providing after-sales services.
After Asahi Shimbun reported on the transfer of Sharp's business in 2018, Dai Zhengwu said in an interview with the Japanese-Japanese daily Industrial News that the small target he set for Sharp was: to sell 8 million LCD TVs in 2017, and in 2018 The goal is 10 million.
Sharp's "turning over" still relies on the Chinese market. As Sharp's LCD TV production line is not transferred to China, Sharp said in an official reply to the Daily Economic News that it has not been determined for the time being.
Recently, the Daily Economics reporter visited Foxconn headquarters in Shenzhen Longhua, Foxconn has opened up a new office space for the Sharp R & D department office. The new style of office decoration is similar to the young Chinese Internet company.
Gou Ming told reporters earlier that it will mobilize some R&D personnel from Sharp headquarters and recruit from China. He deliberately installed a "slide" linking the upper and lower floors, "inspiring the inspiration of engineers in this way."
In addition, China has also become Sharp can not be ignored market. Sharp recently issued a statement that it expects to earn 9.9 billion yen in 2016 fiscal year. Its loss in fiscal year 2015 reached 192.4 billion yen. This is Sharp's first profit after three consecutive losses. Excuse me, the power of the Chinese market cannot be ignored.
From the perspective of various parties, China has become the most important industrial base in the global color TV industry. Ove Cloud Network data show that in 2016, global shipments of color TVs reached 227 million units, of which 59.6 million units shipped in mainland China, accounting for 26.2% of the total global shipments. In terms of production, the mainland China factory has undertaken 60.3% of television production, reaching 137 million units. All indications are that the global color TV innovation resources and industrial chain resources are tilting toward China.
Liu Buchen, an expert in the home appliance industry, told reporters that in Sharp's strategy of “turning to attackâ€, its production increasingly depends on the Chinese market rather than Japan. On the one hand, it is clearly unreasonable for procurement costs and supply of key components to be sent back to Japan by China. In addition to the greater dependence on sales in the Chinese market, Sharp can not rise in the hands of Hon Hai, China is the key.
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