Xiaomi Corp. entered a new strategic cooperation with TCL Group for developing smart products and electronic devices. On Jan. 4 Xiaomi’s invested 65.2 million shares (0.48 percent stake) in TCL. The two companies that had previously signed a pact on Dec. 29 hope to deepen the cooperation through the new partnership.
The two companies will strongly complement each other’s business. In 2018, Xiaomi gained popularity in the home appliance segment. The Chinese is not only known for smart TVs, but also other home electronics devices such as air conditioner, washing machine and so on. Through the new partnership, Xiaomi will reportedly focus on research, development and designing of forthcoming home appliances while TCL will use its rich expertise from supply chain and production to concentrate in departments like semiconductor display, material and other emerging businesses.
Xiaomi became the number one smart TV brand in China in the previous year. Also, according to IDC survey for Q3 2019, the Chinese firm dethroned Samsung to the become the number uno smart TV brand in India. The year-on-year global sales of the company has increased by 350 percent.
TCL is already a known brand in China when it comes to TV business. In terms of sales, TCL’s Huaxing Optoelectronic TV ranked fifth place in the first three quarters of the previous year. Hence, the partnership with TCL will certainly help Xiaomi not only in the smart TV business, but also in other home appliances.