In recent years, as Kobe Steel, a century-old Japanese company, openly admitted to fraud, the reputation of Japanese manufacturing has taken a hit. In contrast, the global influence of "Made in China" continues to grow steadily. On October 16, the first batch of Boston Orange Line subway cars developed by CRRC Changchun Rail Bus Co., Ltd. was unveiled and is expected to arrive in the U.S. by December, marking the first time domestic rail transportation equipment has entered the American market. This will allow Americans to experience the efficiency and speed associated with "China Speed."
Over the past two years, the transformation of "Made in China" from mere exports to overseas enterprises has become more apparent. Foxconn, a representative of high-end Chinese manufacturing, exemplifies this shift through its investment in Sharp, a once-renowned Japanese brand that had fallen from grace.
Once considered the "father of liquid crystals," Sharp faced significant losses and eventually sold off parts of its business. However, after reaching a funding agreement with Hon Hai (Foxconn) in March 2012, Sharp began to recover. The injection of capital in August 2016 led to a dramatic turnaround, with Sharp's fourth-quarter financial report shifting from loss to profit. The company is now regaining its position among top-tier home appliance brands globally.
Data shows that on 618 E-commerce Day, Sharp accounted for 36.9% of the overall market sales. At the end of August, Sharp launched the world’s first consumer-grade 8K TV simultaneously in Shanghai, Taiwan, Tokyo, and Berlin. This move highlights not only technological innovation but also the brand’s renewed global presence.
From a rapid turnaround into profitability to further advancements in technology, the case of Sharp demonstrates how "Made in China" can influence and transform well-known international brands. So, what exactly happened after Foxconn invested in Sharp? What lessons can it offer to Chinese manufacturers aiming to go global?
**Reshaping Sharp**
Sharp, a company with over a century of history, once pioneered numerous "Japan’s first" and "World’s first" products, from radios to LCD monitors. However, in recent years, it struggled with continuous losses. In 2014, Sharp lost over 20 billion yen, leading to massive debt and eventual sale. In August 2016, Hon Hai (Foxconn) invested 38.88 billion yen (about $3.8 billion) to acquire 66% of Sharp’s equity, marking a pivotal moment in its recovery.
Like many Japanese electronics companies, Sharp’s decline stemmed from slow corporate culture, sluggish market response, and oversupply of key products such as LCD panels and TVs. These issues made Sharp less competitive in the global market.
Foxconn’s involvement helped address some of these challenges, particularly in supply chain and production costs. The company implemented reforms in personnel, operations, and supply chain management. Sharp focused on product planning, development, and sales, while procurement and manufacturing were handed over to Hon Hai, leveraging its global resources to increase production capacity.
Foxconn’s purchasing and manufacturing scale is immense. For example, some of Sharp’s 2017 TV models were produced by Hon Hai under OEM agreements. Prior to this, Sharp operated a manufacturing plant in Shanghai. Recently, Foxconn invested 6.1 billion yuan to build a factory in Guangzhou, creating an 8K ecosystem for the 10.5 generation line. This expansion allows Sharp to reduce costs significantly by utilizing Foxconn’s global production network.
By lowering costs and offering more affordable pricing, Sharp has successfully increased its market share. With effective marketing strategies, Foxconn helped re-enter the Chinese market, which is crucial for Sharp’s growth. Sharp also used modern marketing techniques, including variety shows and e-commerce events like Double 11 and 618, to enhance brand visibility and consumer engagement.
**New Sharp: From LCD Pioneer to 8K Leader**
As the world’s largest contract manufacturer, Foxconn works with major brands like Apple and Samsung. It possesses strong industrial capabilities, advanced supply chain coordination, and deep expertise in product development. Sharp, on the other hand, has long-standing technical strengths in areas such as liquid crystal displays and a strong brand presence in consumers' minds.
The collaboration between Foxconn and Sharp is based on complementary strengths. Rather than just investing in R&D, Foxconn focuses on accelerating the commercialization of new technologies and increasing market operations. This helps Sharp expand its market share and improve product quality.
Under Foxconn’s support, Sharp has evolved beyond relying solely on LCD TVs. It is now building an ecosystem that connects smart homes, offices, factories, and cities through 8K technology, IoT, and cloud services. This marks a shift toward multiple growth avenues.
The results are clear. After solving Sharp’s survival issues and helping it return to the top tier of the TV industry, Foxconn invested heavily in 8K technology. Sharp launched the world’s first 8K TV, with Chen Guoguo, vice president of Foxconn Technology Group, stating that Sharp has built a complete industrial chain, from 8K filming to terminal playback. To solidify its commitment, Sharp announced the construction of the Luhu Global Future Display Technology and Innovative Application R&D Center, a major project in Shenzhen.
Entering the Foxconn era, Sharp is redefining itself. From being the "father of LCDs" to becoming the "father of 8K," Sharp is putting pressure on its competitors. Despite many TV companies expecting a tough year, Sharp exceeded expectations.
**"Made in China" Outbound Strategy Transformation**
The partnership between Foxconn and Sharp represents a new phase in "Made in China." Through resource integration and mutual advantages, traditional brands are revitalized. Experts suggest that "Made in China" no longer simply refers to exporting products or acquiring foreign companies. Instead, it now involves empowering and transforming global brands to represent the high-end level of Chinese manufacturing.
Obtaining brand equity in the upstream of the industry chain is a key direction for China’s manufacturing evolution. Foxconn Chairman Guo Taiming believes that for Made in China to truly transform, it must move from behind-the-scenes roles to front-stage leadership. Acquiring brand equity through acquisitions or other methods is essential for industrial upgrading.
From imitation to innovation, from OEM to brand ownership, the position of Chinese manufacturing in the global industrial chain is being reshaped. The success of Foxconn empowering Sharp is a symbol of the rising global influence of "Made in China." It is moving from the bottom of the supply chain to the top, transforming from a big manufacturing country to a strong one. It is shifting from passive承接 to active layout, rebuilding a new global industrial pattern with the power of "Made in China."
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