When Sony announced last month that it intended to pass control of its home entertainment division, including the Bravia television brand, to the Chinese group TCL Electronics, it came as a shock. How could Sony, famed for its sleek, expensive devices, play second fiddle to a Chinese brand?
The question can be asked the other way round: when did TCL, which was founded 45 years ago as an audio tape manufacturer in Guangdong province, turn into a credible joint venture partner for Sony? Along with Hisense, it has established a pretty good reputation for making budget LCD televisions, but Bravia’s high-end halo has been in place for two decades.
The answer lies in the longevity of reputations. It takes time to build brands and perception often outlives business reality. Sony still produces high-quality televisions, but it no longer makes key parts itself. It was long ago overtaken in sales by South Korea’s Samsung and LG, and now has only 2 per cent of the global market.