In November 14th, the Japanese electronics giant Toshiba announced the sale of TV business bulletin, Toshiba imaging solutions company (Toshiba Visual Solutions Corporation, referred to as TVS) 95% of the shares transferred to the Hisense Group officially, transfer the amount of temporary total 12 billion 900 million yen (about 750 million yuan), is expected to be completed by the end of February 2018 after the transfer formalities. Toshiba TV products, brands, services and other business operations will be attributed to Hisense, the latter will have Toshiba TV authorized 40 years of the brand in the global scope.
Toshiba said that it is difficult for the mapping business to invest more resources alone, and it is difficult to maintain its competitiveness continues to improve. According to the plan, Toshiba will be the social infrastructure, energy, electronic components, ICT solution as the key business areas, and therefore focus on investment management of resources. In the future, TVS production and sale of household television and other imaging equipment, will continue to use Toshiba brand.
Clearly, the sale of television business is one of the measures Toshiba urgently needs to improve the current financial situation.
Early in April this year, with Toshiba to accelerate the sale of non core businesses, including the previously stripped part of the television business, potential buyers include Turkey Vestel company and Hisense group.
Television was once the flagship product of Toshiba, and Toshiba was the first company to launch color TV in japan. But because of the bankruptcy of Westinghouse, Toshiba has to face restructuring again. In order to reverse the loss, Toshiba has sold TV, white appliances, medical equipment and other services.
TV business destined to be sold
Affected by the nuclear power business investment failure, financial fraud scandal, Toshiba is in a difficult situation. In the face of difficulties, Toshiba opened business restructuring in the past two years, and made substantial layoffs. But the grim financial situation has also brought a pressing problem, Toshiba must be over two consecutive years of insolvent situation at the end of March 2018, otherwise, according to the TokyoNegotiable securitiesAccording to the exchange regulations, Toshiba will be forced to withdraw from the market.
To this end, Toshiba in September will be sold to its semiconductor business, led by Bain Capital of Japan South Korea alliance to improve the financial situation, but under the influence of antitrust scrutiny, the market generally believes that the sale is likely to miss the deadline for semiconductor.
According to Japanese media news last week, Toshiba is worried about the semiconductor sales is too late, the employment performance of the personal computer and television business downturn, will consider the withdrawal of the market plan into the scope of operation reorganization. Less than a week before the news, Toshiba will personally make the sale of television business news.
A few years ago in China and South Korea brand under the impact of the Japanese home appliance brand shows the decline trend. Toshiba TV business performance is also deteriorating. The exposure of financial scandals since 2015, Toshiba through the integration of the overseas TV business to brand licensing mode, the full withdrawal of the overseas market, focusing on Japan's domestic development and sales.
In 2010, Toshiba and TCL group established a joint venture of Toshiba video products (China) Co. Ltd., Toshiba brand TV channel development, product sales and maintenance services. But in 2014, Toshiba's stake in the joint venture was down from 51% of its original stake to 30%.
2016 4~9 months, Toshiba TV business sales decreased by 42%, only 27 billion 900 million yen, operating profit loss of 10 billion 500 million yen. In June 2016, Toshiba sold 80.1% of the white goods business to the Midea Group in china. In addition, Toshiba sold its color TV factory and washing machine factory in Indonesia to SKYWORTH, and the image sensor business was sold to SONY.
Appliance industry veteran observers Liu Buchen said the analysis of the financial times, although Toshiba is facing the financial crisis, but more than Toshiba exit computer, TV business plans, many of Japan's household electrical appliance enterprises also have a similar situation, although there is no clear intention to give up the business, but in fact the market is shrinking.
Will the next one be a computer business?
In addition to the television business, Toshiba is likely to face similar results as well as computer business.
At present, Toshiba notebook in China is mainly agent sales, and can not see the sale of consumer products. Jingdong has also issued a "Toshiba notebook store Toshiba laptop manufacturers have stopped production of consumer products to consumers, only the production of commercial aircraft super" tips.
The Financial Times said Toshiba, starting from the 2014 fiscal year, in order to accelerate the overall business group to the field of B2B concentration in parts of the world out of the computer's B2C field sales. From the beginning of fiscal year 2015, the computer business as a whole in the B2B field as the core, and in Japan and North America, still continue to sell B2C computer products.
But the direction of the business adjustment did not make Toshiba's computer business performance improved signs. Toshiba released last week's latest earnings report as of September, showing that Toshiba PC business in the first half of this year, net sales fell by 16% compared to last year, is still in a loss. Toshiba said that due to the full withdrawal of overseas B2C business, Europe and North America B2B market sales weakness, leading to decline in sales. In addition to the decline in sales, the rise in component costs (such as SSD) has also led to a deterioration in income.
For the current debt ridden Toshiba, television, computer business are no longer the core business, and gradually withdraw from the market is also the general trend. But in Liu Buchen's view, Toshiba out of the market, only means that Toshiba withdrew from the manufacturing, marketing and other aspects of brand management, entrusted to the third party, also be called exit completely, completely exit the means to see the products of this brand.