Hisense Zhou Houjian: From Technician at Qingdao Television Factory to Global No. 2 in TV Shipments

Origin

In 1982, after graduating from the Department of Electronics at Shandong University, Zhou Houjian joined the Qingdao Television Factory as a technician, having previously been an 'educated youth' sent to the countryside. When he became factory director in the early 1990s, the core challenge was that key technologies—chips and panels—were monopolized by foreign firms, leaving domestic manufacturers to earn thin margins through assembly. Convinced that lacking independent technology meant perpetual dependency, he upgraded the design department into a research institute, significantly elevating the status and compensation of R&D. He established a 'technology-led' strategy, choosing to invest resources into R&D rather than engaging in price wars.

Milestones

Turning Points

• Refusing to lower prices during the 1996 price war and using transparent chassis to prove build quality, shedding the image of a low-end brand.
• Mass production of self-developed digital video processing chips in 2005, breaking import monopolies and forcing down competitor prices.
• Acquiring the heavily loss-making Kelon when others were risk-averse, securing a second pillar in white goods.
• Acquiring Toshiba's TV business in 2018 and turning it profitable, establishing a bridgehead in the mature Japanese market.
• Betting on laser display against industry consensus, creating a brand-new large-screen category beyond traditional TVs.

Failures & Pitfalls

• In the early judgment of plasma technology, although Hisense realized the issues with PDP and pivoted in time, many peers who bet on plasma or LCD were eliminated, showing that a wrong technical choice can be fatal.
• Integration after the Kelon acquisition was exceptionally difficult; team friction and cultural conflicts dragged on for years, proving it wasn't an instant success.
• The acquisitions of Toshiba and Sharp's TV businesses were widely questioned as taking on loss-making assets, with the company bearing both financial losses and public pressure during the early integration phase.
• Some new businesses in the diversification expansion failed to take off, leaving the group long-dependent on the two main pillars of TV and white goods.

Core Data

• Global TV Shipment Ranking：Ranked 2nd globally for 3 consecutive years (based on public data, independent verification not performed)
• Number of Countries with Top Market Share：No. 1 market share for TVs in 5 countries, No. 1 sales for refrigerators in 7 countries (based on public data, independent verification not performed)
• Tenure：Zhou Houjian served as factory director from 1992 until stepping down as chairman in 2022, approximately 30 years (based on public data, independent verification not performed)
• Key M&A：Acquired ~95% of Toshiba TVS in 2018, obtained Sharp Americas brand rights for five years in 2015 (based on public data, independent verification not performed)
• Technical Milestone：Launched first self-developed digital video processing chip in 2005, with continuous iteration of self-developed picture quality chips since (based on public data, independent verification not performed)

Competitors / Peers

In the global TV market, Samsung has long held the top spot in shipments and is Hisense's direct rival for the lead. TCL is growing aggressively in North America through vertical integration with CSOT panels, competing with Hisense for second place. Domestically, Skyworth and Xiaomi compete in the cost-performance market. In white goods, Hisense faces giants like Haier and Midea, while overseas, it must confront the brand barriers of Sony and LG in high-end displays.