China's Hisense bets on US to grow overseas revenue

China's largest TV maker aims to grow revenue in the U.S. market to $700 million this year, as it looks to increase overseas revenue from 30 percent to 50 percent of its total TV sales.

Hisense hopes to increase its U.S. revenue to US$700 million this year, and that the market will be the springboard for expanding its presence in other parts of the world.

Chinese TV maker Hisense is looking to increase its overseas revenue over the next three years, with the United States identified as a key contributing market.

Citing research from the China Market Monitor, China Daily reported Tuesday Hisense has a 16.35 percent market share of China's overall LCD TV market, which makes it the largest vendor currently. However, its domestic strength is not matched by its standing in the global market, said Zhou Houjian, the company's chairman.

"Our share of the overseas market is still relatively low in terms of total revenue, and there is much room for improvement," Zhou said.

He did note in 2012, Hisense's global revenue rose 20 percent year-on-year on the back of strong performances in the U.S., Europe and Australia.

The company now hopes to increase overseas revenue, which constitutes 30 percent of overall TV sales currently, to 50 percent in the next three years. To do so, it wants to build on the U.S. market and establish a strong base, Zhou revealed.

He is expecting TV sales in the U.S. to grow from less than US$600 million in 2012 to US$700 million this year. To support this growth, the TV maker plans to increase production at its joint venture in Mexico, which has an annual production capacity of between 300,000 to 500,000 TV sets, the report noted.

Zhou said: "If we can establish ourselves in both the Chinese and U.S. markets, we can then establish ourselves in other markets around the world. The U.S. market is the most open in the world, and consumers demand products with the highest price-performance ratio ."