Loewe has applied for bankruptcy protection and has been on the hunt for a Chinese partner. That partner has been found in Chinese Hisense that will help Loewe in purchasing, production, development, and sales of TVs. Loewe will also help Hisense in Europe.
Loewe in partnership with Chinese Hisense
In the past, Loewe has been associated with German thoroughness and quality but from here on they will partner with Chinese Hisense.
Hisense has grown to become the largest electronics maker in China and one of the largest TV makers globally. For TV sales they are approaching Japanese brands such as Sharp, Toshiba, and Panasonic. Hisense will help Loewe get access to the latest TV technology and help Loewe produce TVs in China. Hisense will also help Loewe get established as a TV brand in the Chinese market.
Loewe TVs will be manufactured in China with help from Chinese Hisense
Loewe says that they intend to switch focus to the entry level of premium TVs instead of only the high-end premium range. This basically means that Loewe will compete with Samsung, Sony, LG, and Panasonic, probably in the typical 8 series price range. Loewe will continue to produce exclusive TVs that will sell through Loewe’s own stores. The cheaper TVs will be distributed through new channels and retailers.
Loewe will also start producing cheaper sound systems. Manufacturing of sound systems will remain in Kronach, Loewe’s home town.
- "The strategic partnership with Hisense is a key milestone in the continued restructuring of Loewe [translated]," says Loewe CEO, Matthias Harsch.
At the same time, Loewe will help Hisense enter European markets, especially German-language markets and the Benelux countries. The first market will be Austria where Hisense intends to introduce its Ultra HD TVs. Hisense will also gain access to Loewe’s TV software and Smart TV software.
Loewe will launch new, cheaper TVs at IFA 2013 in early September, according to the company.
Loewe applied for bankruptcy protection in mid-July. The partnership with Chinese Hisense is part of Loewe’s goal to restructure its business in order to avoid bankruptcy. Loewe also hopes to raise capital on the German stock exchange.