The remarkable journey of TCL, a Chinese multinational electronics company, epitomizes the modern concept of globalization, reflecting how companies can successfully venture beyond their borders and establish themselves in the global marketplace. With a history spanning over four decades, TCL is a prime example of how strategic international expansion can become a driving force for growth and innovation. As the company prepares to showcase its achievements and future ambitions at the 2025 International Consumer Electronics Show (CES), it’s essential to reflect on how TCL carved its niche in the competitive landscape.

By 1987, China had already claimed the title of the world's largest television manufacturer, and for TCL, going global was not just an option; it was a necessity. The company faced the daunting task of adapting to diverse markets, each with its own unique consumer preferences, regulatory environments, and competitive dynamics. However, TCL understood that globalization was not a destination but an ongoing process that involves continuous learning and adaptation.

TCL’s foray into international markets began in earnest with its move to Vietnam in 1999. Initially, the company struggled to penetrate the Vietnamese market, facing significant losses for 18 consecutive months. The approach of distributing products door-to-door via motorbikes proved ineffective in resonating with the local consumer base. Deep market research and consumer feedback revealed that local weather patterns, particularly frequent thunderstorms, necessitated televisions that were durable and capable of superior signal reception. Armed with this insight, TCL modified its offerings to develop products that addressed local demands, thus marking a turning point in its operations in Vietnam.

TCL's experience in Vietnam laid the foundation for a vital lesson: successful internationalization is not merely about selling products abroad but rather entails a long-term commitment to understanding and integrating into local markets. As TCL’s founder and chairman, Li Dongsheng, emphasized during a review of their Vietnamese endeavors, local responsiveness is not just a slogan but requires deliberate actions that span across product development, team composition, and supply chain management.

Fast forward two decades, and TCL made a significant investment of $45 million in establishing a cutting-edge manufacturing facility in Binh Duong, Vietnam. This sprawling 73,000-square-meter facility encompasses various manufacturing processes from core component processing to final assembly, achieving an annual production capacity of over 7 million televisions. The localized manufacturing capabilities enable TCL to swiftly respond to shifts in consumer preferences while ensuring that product quality meets the highest standards. The manager of TCL Smart Appliances in Vietnam noted that building strong local manufacturing capabilities has been essential in producing high-quality, consumer-oriented products.

Sustainability and local partnerships have also proven pivotal in TCL's global strategy. The experience gathered over the years has led to the understanding that succeeding in international markets requires more than just logistics; it necessitates cultivating a robust operational framework that includes local supply chains. For example, TCL’s television factory in Mexico has been able to leverage its proximity to a local supply chain, allowing it to procure raw materials and components within an hour’s drive, thus minimizing operational disruptions and costs.

Through relentless technological innovation, global supply chain structuring, and effective local operational strategies, TCL has built an extensive global presence, comprising 46 research and development centers and 38 manufacturing bases in various countries, including Vietnam, India, Poland, and Mexico. Its marketing and sales efforts span over 160 nations, underscoring its commitment to becoming a truly global brand.

Understanding the cultural nuances of target markets has been critical in shaping TCL’s local strategies. The upcoming 2024 Paris Olympic Games is an excellent illustration of this. Anticipating the popularity of shooting sports in Vietnam, TCL formed a partnership with the Vietnam National Shooting Team, engaging in marketing initiatives that strengthen brand awareness and resonate with local consumers. Likewise, in Europe, TCL pursued collaborations with local sports events and became official partners with several football teams from Germany, Spain, and Italy. This multifaceted sports marketing strategy has successfully penetrated various disciplines, including soccer, basketball, esports, and cricket, creating deeper connections with global audiences.

As a result of these strategies, TCL has made its mark across various markets. In 2024, the company reported a 14.8% increase in global television shipments, reaching 29 million units. The European market saw an impressive 33.8% rise in television deliveries, while TCL maintains a commanding retail position in the competitive U.S. market. These achievements highlight the effectiveness of TCL's localization efforts and its ability to respond to market demands and trends.

Li Dongsheng succinctly encapsulates the essence of TCL’s journey by stating, “Globalization is localization.” This philosophy underscores the necessity for Chinese enterprises to develop competitive capabilities that can stand shoulder to shoulder with international competitors. As TCL looks to the future, it aims to enhance its global operational capabilities further. The company strives for a diversified, inclusive cultural framework that harmonizes with a global management system. TCL envisages itself as a ‘chain leader,’ fostering collaboration among upstream and downstream enterprises to jointly enhance the global industrial ecosystem while simultaneously improving local supply chain competencies.