Pioneer TVs not dead after all (but only in China)

[Andrew Everard]

This just in:

Pioneer and Suning Conclude a Strategic Alliance Agreement for the
Home Electronics Business
A new strategy for accelerating growth in the Chinese market

Pioneer Corporation concluded a strategic alliance agreement with Suning
Appliance Co., Ltd. (hereinafter “Suning”), a major Chinese home electronics
mass retailer, on November 20, with the purpose of strengthening and expanding
the home electronics business in China, prompting this announcement. Through
this alliance, the two companies will execute a new strategy that utilizes the
strengths of both companies, and Pioneer is aiming for sales of audio visual
products over 10 billion yen in the third year through Suning’s sales channels in
China.


The main points of this alliance include: 1) to expand sales of existing audio
visual products of Pioneer by taking advantage of Suning’s sales infrastructure
and expertise in the Chinese market and strong sales channels covering major
cities all over China; and 2) to grant Suning a license to use the Pioneer brand for
domestic Chinese sales of flat-screen TVs which Suning is to develop with the
cooperation of Pioneer.


China is an extremely important market for Pioneer, but is a market with both
huge potential and intense competition as well. It is essential to efficiently solve
challenges such as geographical dispersion and distribution mechanisms in order
to accelerate business expansion.


Suning Appliance is a dominant, large-scale business group in China, with
about 900 stores in major cities in China, and it has been realizing remarkable
growth in recent years. Through this alliance, Pioneer aims to accelerate the
expansion of sales and profits in its home electronics business in the Chinese
market, by effectively utilizing Suning's strong sales channels, infrastructure and
marketing expertise.

 

[Anonymous]

ah , there might still be a brand new kuro for sale when i have a spare 2.5k lying around , but after paying the chinese courier , where do i get the other 2.5k ??

 

[Deleted member 2457]

Good news, perhaps when they have got written of there debt then they might come back to Europe.

Defintely will not be buying a plasma otherwise.

 

[Andrew Everard]

gel:Good news, perhaps when they have got written of there debt then they might come back to Europe.

Defintely will not be buying a plasma otherwise.

Damn - I had 11.58 in the office sweepstake...

 

[Deleted member 2457]

You know me well Mr Everard, normally it would have been but I went up the town this morning.

Had a quick read of your ulimate mag for this month. Good to see sevenoaks sell starting on 12 December in case anyone interested.

That damn watchmen director's cut in dolby true high defintion.

 

[Anonymous]

Its an interesting story.Sounds like a Licensing deal to borrow and use the technology.The Chinese have not quite brought the Pioneer TV division and all the R and D.If they did that would be the a big headline.You think Sony might get in there if it was forsale?

Everyone sees China as the next place to sell enmass as markets elsewhere are saturated or depressed. The problem being the average pay in China is 10K sterling, so even with a population of 1.3 billion I can't see this move will restore the purist top end of the TV range any time soon.The Chinese are going to use Pioneer know how and parts to produce simple sets to bolster their mass market consumptions in TV. They did this with MG Rover and LDV vans. These deals brought all the intellectual rights though.

A pioneer mass market TV in China costing £200 a reality.But it will be for their market.

But who knows there could be Pioneer Kuro made in China and exported to the West one day? But this isn't the business plan at the moment as it's more about stimulating domestic consumptions through their own made goods. {MADE IN PRC.]

 

[bigboss]

Hasn't Pioneer sold its TV technology to Panasonic? How can it then use it to make TVs?

 

[Andrew Everard]

The basis of the deal appears to be that Suning - China's biggest home electronics retailer - gets to use the Pioneer name on Chinese-market TVs it makes in association with third-party suppliers.

Pioneer does quality control to make sure its brand isn't undermined, and collects serious amounts of YYY as a licence fee.

 

[Deleted member 2457]

Andrew Everard:

Pioneer does quality control to make sure its brand isn't undermined, and collects serious amounts of YYY as a licence fee.

Which is what it's all about ie the money.

 

[Andrew Everard]

gel:Which is what it's all about ie the money.

That's kinda how business tends to work

 

[Anonymous]

Andrew Everard:
gel:Which is what it's all about ie the money.

That's kinda how business tends to work

lol , its a good thing pioneer are keeping at least a toe in the tv market , if the economy picks up we may yet see a ten gig kuro ,heres hoping ..