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Xiaomi partners up with TCL Corp to target the home appliance industry

CKN
minutes 2019/01/08 06:27:55
2,783
China's News, China Economy, Xiaomi; TCL

Jan 08, 2019 (China Knowledge) - Smartphone maker Xiaomi will be partnering up with electronics maker TCL Corp to expand its product portfolio into home appliances. Through the partnership, Xiaomi hopes to be able to take advantage of TCL strengths in supply chain and semiconductor display to develop its product line.

The partnership involves Xiaomi taking a minority stake in TCL Corp by purchasing 65.2 million shares to acquire a 0.48% stake.

The two companies will be jointly developing smart products and electronic devices as well as apply these devices and technologies in next-gen hardware. The move comes amid a wider movement by the Chinese government to upgrade and transform the country’s manufacturing industry and the partnership will help both companies better serve their customers.

Xiaomi which started off as a smartphone and smart device maker has identified home appliances as its next growth driver. The company has made major developments in household products such as smart TV, air-conditioners and even washing machines in recent times.

Last year, Xiaomi become the top smart TV brand in China and global sales of its smart TVs are expected to grow by more than 350% YoY. The company’s foray into home appliances is part of its wider artificial intelligence and IoT strategy.

It hopes to make home appliances more “intelligent” for the future and working with TCL provides a strong supply chain foundation to promote more innovation in the industry.

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