How Hisense is preparing to challenge LG and Samsung in India’s next appliance battle

Hisense India plans to compete with LG and Samsung by expanding beyond televisions and air conditioners and entering the washing machine market. The strategy includes local manufacturing, a broader offline network, and a full product portfolio to accelerate growth in one of the world's fastest-growing consumer durables markets.

The company, which operates globally across more than 160 countries with a USD 30 billion business, expects India revenue to grow 50 per cent this year to USD 150 million from about USD 100 million last year. It is also targeting a 10 per cent market share in washing machines within the next three to four years.

"We are launching washing machines this month, making it our third category in India. This is only the beginning of our larger ambition to build a complete consumer durables portfolio," Pankaj Rana, CEO, Hisense India, told ETRetail.

The company is introducing more than 42 washing machine SKUs across semi-automatic, top-load, and front-load categories over the next three months. While semi-automatic and top-load models are being sourced through Dixon Technologies, front-load machines will be manufactured at Hisense's Sri City facility, developed in partnership with EPACK.

"Our strategy is two-pronged. We are manufacturing front-load machines in Sri City while leveraging OEM partnerships for top-load and semi-automatic products. This allows us to scale quickly without compromising on product quality," Rana said.

In the first year alone, Hisense plans to sell 300,000 washing machines, gradually ramping up production from about 15,000 units a month initially to nearly 25,000 units monthly.

The company has committed around USD 10 million towards manufacturing infrastructure for the category, while marketing investments are expected to rise to nearly 15 per cent of revenue during the launch phase.

"The larger investment is not manufacturing alone. It is about creating awareness that Hisense is now a washing machine brand as well," he said.

The category is expected to contribute about 10 per cent of overall India revenue this calendar year, rising to 20-25 per cent next year.

Currently, televisions account for nearly 70 per cent of Hisense India's business.

Alongside category expansion, the company has significantly strengthened its retail footprint. It now has 70-plus direct billing points across distributors, regional retailers, large-format stores and modern trade, while continuing to add three to four major channel partners every month.

"Our focus over the last year has been aggressive offline expansion. Last year our business mix was 55 per cent offline and 45 per cent online. This year, we expect 70 per cent of sales to come from offline, and by 2027 we want that ratio to reach 80:20," Rana said.

Hisense also sees manufacturing localisation as a long-term differentiator. Its air-conditioner facility currently has an annual capacity of 500,000 units, while the washing machine plant will initially manufacture 200,000 front-load units annually.

"We're not here to rush. India is a long-term market for us. Success will come through localisation, stronger R&D and products built specifically for Indian consumers," he said.

The company expects its television business to reach 3-4 per cent market share by the end of this year, with a medium-term target of 10 per cent. In air conditioners, it is targeting 5 per cent market share over the next three years.

Looking ahead, Hisense plans to introduce refrigerators, small domestic appliances, kitchen appliances and commercial air-conditioning solutions, making India an increasingly important pillar in its global growth strategy.