Chi Mei Group, the Taiwan-based LCD panel manufacturer, has jointly announced with Suning in Shanghai that the two companies will cooperate to explore Chinese mainland's flat-panel TV market.
Cheng Fayun, marketing director for Chi Mei's Shenzhen Nexgen Trading Company Shanghai Office, says that the current annual capacity of the Chinese mainland LCD panel market is about 17 million, of which the LCD panels of Chi Mei occupy a 45% market share. In most countries across the world, the annual growth rate of the flat-panel TV market is over 50%, but the rate in Chinese mainland market is only 34%, which represents a great potential for the company. That is the reason for Chi Mei's entry into the mainland flat-panel TV market.
Chi Mei plans to invest over USD100 million in the production and marketing of its plat-panel TV products in the Chinese mainland market, Cheng added.
Referring to the cooperation between Chi Mei and Suning, Ling Guosheng, vice president of Suning says it is a cooperation of experts for Suning is an expert in the retail field while Chi Mei is an expert in LCD and the manufacturing field. Therefore, this complementary cooperation will enhance the competitive strength of both sides.
As one of the world's leading LCD panel manufacturers, Chi Mei started as an original equipment manufacturer for LCD TV products in 2004. In 2006, the company developed its own LCD TV brand and its sales volume ranked second in Taiwan's LCD TV market.