Summary of Key Points
Hisense has sponsored the World Cup for three consecutive years, using sports marketing to achieve brand globalization (increasing its overseas recognition from 37% to 58% and becoming the world's second-largest television exporter). However, during the 618 shopping festival, it exposed flaws in its brand credibility and internal governance by arbitrarily canceling thousands of paid orders and compensating consumers with a mere 50 yuan red envelope. The company's investment in World Cup marketing has been increasing annually (reaching over $430 million in 2026), but the returns are diminishing, and it faces competition from peers. While Hisense has a diversified approach to display technologies (laser, Mini LED, etc.), it is under pressure from competitors like TCL and new entrants in the projection market. Although its laser television technology holds patents, it relies on imported components and must navigate challenges related to ecosystem competition and internal investment decisions.
1. The 618 Refund Incident: A Blunder That Damaged Brand Credibility
During the 618 promotional period, Hisense's official stores on JD.com and Taobao suddenly canceled thousands of paid orders without providing any explanation, later compensating consumers with a 50 yuan red envelope, which sparked widespread anger.
- Legal Incompetence: According to the E-commerce Law, a contract is established once the consumer makes a payment, and merchants cannot cancel it at will. Even if there was a significant pricing error (such as a major misunderstanding), they must follow legal procedures to revoke the order, not simply refund the money without explanation.
- Insufficient Compensation: The refund amount ranged from 2000 to 7000 yuan, with a standard red envelope of 50 yuan, which did not even cover the cost of shipping, showing a complete lack of respect for consumers.
- Damage to Brand Reputation: Consumers became aware of Hisense through its World Cup sponsorship; this mishap could undermine the trust built over the past three years of sponsorship.
2. The High Cost of World Cup Marketing
Ten years of sponsoring the World Cup has indeed made Hisense more visible globally, but the investment is becoming increasingly unprofitable:
- Rising Costs: The 2026 World Cup sponsorship fee was $150 million, plus additional investments in physical stores and online marketing, totaling over $430 million—much higher than before.
- Diminishing Returns: In the past, Hisense had a monopoly on World Cup sponsorship; now competitors are also participating. For example, TCL has partnered with strong teams (Spain, Germany), Midea and Haier have launched "home viewing kits," and Vardio has leveraged media attention to dilute Hisense's exclusive benefits.
- Low Profit Margins: The gross profit margin on overseas television sales is only around 12% (compared to 23% domestically), and Samsung dominates the high-end market (with a 54.3% share in the $2500+ segment). The exposure from World Cup sponsorship has not translated into higher prices for Hisense products.
3. Display Technology: Advantages Under Threat
Hisense has strengths in display technologies (laser, Mini LED, custom chips), but its competitors are also formidable:
- TCL's Challenge with Mini LED: TCL owns its own panel factory (CSOT), with a self-sufficiency rate of over 60%, reducing costs. TCL also collaborates with Sony, giving it a competitive advantage in technology and production capacity.
- Projection Technology Competition: New players like JIMI and Nut have launched affordable three-color laser projectors, competing with TVs. JIMI's profits increased by 19% in 2025, directly impacting TV sales.
- Technological Homogenization and Ecosystem Shortcomings: Many manufacturers can now produce high-refresh-rate, high-brightness TVs, diminishing Hisense's unique advantages. Samsung offers a "smart home ecosystem," while Hisense focuses solely on screens, making it harder to stand out.
4. Laser Television: A Bright Face with Hidden Weaknesses
Laser television is a flagship product for Hisense (with global patents), but there are several issues:
- Imported Components: High-end laser components still need to be imported, increasing costs and performance variability.
- Ecosystem Competition: Competitors like Huawei and Xiaomi offer integrated display solutions that connect to smartphones and smart homes, appealing to consumers beyond the TV itself.
- Internal Investment Dilemma: Laser television accounts for 40% of Hisense's R&D investment, but RGB-Mini LED TVs are selling better, and the industry is declining. Should Heise reduce investment in laser technology?
5. Internal Governance: A Warning from Internal Issues
The 618 incident was a result of poor internal management:
- Lax Controls: Such significant mistakes (pricing errors, arbitrary refunds) occurred without prior warning or communication, indicating flaws in the control processes.
- Weak Brand Awareness: Instead of apologizing and resolving issues, the company chose to compensate with a red envelope, treating brand credibility lightly.
- Disconnection between Frontline and Backline: While World Cup marketing was successful, internal operations failed, highlighting the importance of consistent management.
Conclusion
Hisense has achieved its goal of becoming globally recognized through ten years of World Cup sponsorship. However, the next decade will require addressing how to make consumers willing to pay for a better product—relying on not only advanced technology but also solid management and excellent service. Otherwise, the reputation built through World Cup sponsorship could be ruined by such blunders.
(The analysis is written in plain language, avoiding technical jargon, and covers five key areas: events, marketing, technology, products, and governance, making it easy for non-financial professionals to understand Hisense's current situation and challenges.)