Sharp Could Be Selling Its Own Built and Branded TVs Again in US Stores by Q4
Sharp Home Electronics, the U.S. sales and marketing subsidiary, based in New Jersey, of Japan-based parent Sharp, is targeting September for a return to the U.S. market for Sharp-built and branded TVs, Peter Weedfald, senior vice president-sales and brand marketing, told us Friday. Weedfald outlined those plans following Sharp's crisp 62-word announcement Wednesday of a new partnership with Hisense.
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Hisense has been producing and selling Sharp- and Aquos-branded TVs for the U.S. market under a January 2016 trademark licensing agreement (TLA). Sharp Home Electronics President Jim Sanduski clarified Friday that Sharp reached a memorandum of understanding with Hisense that will result in the “early transition of the Sharp TV brand back to Sharp.”
The goal is to bring Sharp-made and branded 4K and 8K TVs to the U.S. in time for the crucial holiday quarter, Sanduski told us: Under the MOU, Sharp beginning this fall will be “eligible to again manufacture and market Sharp-branded TVs in the U.S.” The big caveat: "That doesn’t necessarily mean we’ll be ready with a full lineup. It's now May.”
The New Jersey subsidiary is working closely with Sharp's TV development team in Japan to determine specifications and cosmetics for 8K and 4K TVs, Sanduski said. It’s also initiating conversations with what it hopes will be key channel partners to work on assortments and to understand what their requirements would be “so we can put together a successful re-entry plan,” he said.
The TLA with Hisense was originally intended to be a five-year deal when Sharp, as part of restructuring efforts, licensed its brand to Hisense and sold its Mexico manufacturing facility to the Chinese company. Nothing in the MOU deals with the Mexico facility, which remains with Hisense, Sanduski said.
On where Sharp will source TVs for the U.S. market, Sanduski reminded that Sharp is two-thirds owned by Foxconn, which has a Mexico plant that could be put to use as an assembly facility. Sharp's factories in Asia might be another option, he said: "We’re still working out where exactly they’ll be built. We have good options to choose from.” When we asked about Foxconn’s Wisconsin facility, Sanduski said Wisconsin is “certainly on the table” down the road, but it’s in the early stages of development. “We’re going to need something that’s ready before things might be ready there.”
Foxconn’s original deal with Wisconsin was to build a Gen 10.5 LCD fab optimized for 65- and 75-inch TVs (see 1708040056). Foxconn in February downsized the plans to a Gen 6 fab, and now Gov. Tony Evers (D) said he wants to redo the contract (see 1904190038). Gen 6 fabs are typically used for tablet, notebook and monitor displays in sizes between eight inches and 30 inches.
Asked how the Section 301 tariffs on Chinese goods might play into the picture, Sanduski joked: “Do you want my answer an hour ago? It changes by the hour.” Tariffs are a “fluid situation,” he said. Were President Donald Trump to make good on his threat to impose 25 percent tariffs on all remaining U.S. imports from China, "that would certainly have an impact on where we would look to assemble our televisions,” he said. "We have a little bit of time to figure that out.”
As for customer support for Hisense-produced Sharp TVs already in the market, Sanduski said that will be “seamless” for consumers. Sharp is responsible for TVs it built before the Hisense TLA, and Hisense is responsible for in-warranty and out-of-warranty support for TVs it produced, he said. Customers who call Sharp with a support issue for a Hisense-produced TV will get a “soft transfer” to the Hisense support number, he said.
Retailers we canvassed months ago on initial reports suggesting a Sharp re-entry to the U.S. TV market indicated the company's recent TV strategy made them less likely to carry the brand (see 1903080036). Weedfald took exception to suggestions that Sharp no longer had a top-tier TV reputation in the U.S. “When we took a breath on this licensing agreement, we were well-known, well-heeled -- not only by the dealers, the distributors, the channel partners, the experts -- as a premier, Tier 1 player,” he said. “Our intention is to ensure that the way we go back into market, we’re early-recognized, remembered as a leader. Brands don’t make products. Products make brands.”
Weedfald's appearance on social media in March visiting high-end Scarsdale, New York-based Value Electronics, apparently to shore up a retail base, sparked speculation about Sharp's impending return. Value Electronics President Robert Zohn said then he was thrilled with the prospect of carrying the Sharp 8K TV he had seen at CES. Zohn didn’t return our call Friday.
It’s too early to say “who, where, what and when” on distribution, said Weedfald. He referenced positive responses from dealers: “This is once in a lifetime for Jim and I and the team to re-enter the marketplace so we’re going to have a good time doing it with great partners, retailers, dealers, distribution and buying groups, but also we’re going to be very, very smart.” There's “fierce competition” in the market, he said. Sanduski noted Sharp was the first company to show an 8K TV at CES when it showcased a product there in January 2013.
Sharp at this year's CES exhibited on the main floor for the first time in four years and presented an “8K ecosystem,” including a professional and “a snippet" of a prosumer 8K camcorder, Weedfald said. “We’re proud of that ecosystem and that we brought 8K to America in 2013 for the first time.”