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  • Company Updates
TongFang starts globalization
By Liu Yiyi ( chinadaily.com.cn )
Updated: 2015-05-20

Founded by Tsinghua Technology 18 years ago, TongFang has grown into the second largest personal computer (PC) maker in China. With an annual capacity of five million units, the sales volume of TongFang is in the top three in China and top ten worldwide.

Information security is a big issue. TongFang seized the opportunity to implement its technological advantages. The company was listed among the First Level Computer and Information System Corporations by the Ministry of Industry and Information Technology and was recognized as a reliable computer and information system provider.

TongFang is dedicated to guarding national information security. TongFang is a major provider for group purchasing by the central government, the "best computer provider" for the Chinese military, and "the first choice in education" for the Ministry of Education.

In addition, TongFang is a premium PC provider in industries such as banking, telecommunications, and energy.

The past two years witnessed the decline of the global PC market. TongFang kept growing and has become one of the fastest-growing PC makers. TongFang officially entered the global market in 2014.

"Our overseas sales volume reached $100 million last year. The sales volume in the first quarter this year increased 50 percent compared with last year," said Liu Jiepeng, vice general manager of TongFang's marketing department.

The need for information products will increase in the future. In order to meet market requirements, TongFang has to upgraded in the industrial chain, says Qin Jianbin, vice general manger of TongFang's PC business department.

It is difficult to explore the global market. Therefore, TongFang learns from other brands and has transformed from selling products to Original Design Manufacture (ODM). TongFang cooperates with local brands or launches co-brands overseas.

According to Liu, this model has many advantages. It provides large-scale products to customers in different regions. The model also reduces competition from local brands and global giants, which smoothly brings the brand to emerging markets. Moreover, the model saves costs. Cooperating with other brands, TongFang is able to put its focus on developing products instead of marketing, management, and services.

The globalization of TongFang is divided into two steps. The first step is improving brand recognition and reliance through ODM and gaining experience in the global market. The second step is integrated industrial operation with local brands and local governments.

Cooperation with Positivo, the largest PC brand in Brazil is the first milestone of TongFang's globalization. The shipment to Brazil takes up more than half of TongFang's total shipments overseas.

In addition, TongFang also explores its business in countries do not have local brands. TongFang helps the country build factories and establish a computer industry. Then TongFang cooperates with local corporations as an ODM provider. TongFang has had successful trials in countries including Pakistan.

In order to develop innovation, TongFang implement "segmented innovation" to meet the requiremenst of core customers.

Understanding customers' needs and experience has been TongFang's advantage. In the global market, TongFang meets customers' needs and seeks a balance between small scale production and personalized services. Global high-end ODM manufactures usually refuse to provide non-standardized products. But TongFang tries its best to satisfy its customers with a range of prices.

For example, clients wanted to add two USB interfaces on the PC, which usually takes at least two months and high research fee to develop. TongFang will produce the model with lower cost. TongFang is trying to collect the segmented market and make it into a big market, said Liu.

TongFang's goal is to become an industrial operator. Liu said TongFang is seeking cooperation with local brands and governments to export products, research and development, operation, management, and manufacturing. TongFang hopes to develop with the overall industry. With the Belt and Road Initiative, TongFang hopes to have breakthrough.