TCL Spends Big on Marketing and Gets Results in 2023

In a year marked by strategic shifts and operational enhancements, TCL Electronics has emerged with substantial financial gains, as detailed in its latest annual report. The company, navigating through the complexities of a global market, has reported a 10.7% year-on-year increase in revenue, reaching $10.27 billion. This growth is attributed to the successful implementation of its “mid-to-high-end + large-screen” strategy, which not only optimized its smart screen product mix but also led to a 12.5% increase in gross profit, amounting to $1.924 billion. The overall gross margin saw a modest uptick, improving by 0.3 percentage points to 18.7%.

In 2023, the global TV shipment reached 201 million units, marking a slight decline of 0.9% year-on-year. Despite this slight decrease in the overall market, TCL Electronics significantly improved its market position, with its global market share of smart screen shipments increasing to 12.5%. This growth reflects the company’s strong performance in the high-end product segment, notably with Mini LED and QLED smart screens. The shipment of Mini LED smart screens surged by 180.1% while QLED smart screens experienced a growth of 116.1% year-on-year. Furthermore, the company shifted towards larger screens, with the average size of TCL’s smart screens reaching 51.1 inches.

TCL’s diversification into innovative businesses has borne fruit, most notably its photovoltaic sector, which has seen a revenue spike by over 1820.3% year-on-year, amounting to $819 million. This sector has become a significant contributor to the company’s profitability and is part of TCL’s broader strategy to establish a diversified presence across various sectors.

The company’s internet business also witnessed a significant uptick, with revenues growing by 20.2% year-on-year to $364 million. This growth underscores the successful integration of cutting-edge technology and user-centric services, enhancing the overall user experience.