China’s Shenzhen MTC, one of the largest television manufacturers in the world, has signed a $13 million deal with the Ukrainian company Kivi, which produces internet-connected television sets or smart TVs, according to the company’s vice president Sergey Wenger.
Kivi wants to use the money to develop a new smart TV model, improving its design, image and sound quality.
With the Chinese investment, the Ukrainian company, which has produced 380,000 TVs in 2020, also wants to ramp up production and make 500,000 devices in 2021.
According to the chief executive of Shenzhen MTC Forest Ou, the Chinese were impressed with Kivi’s rapid growth in the European and Asian markets.
“That is why we decided to work with Kivi more closely and share our experience and resources with them,” Ou said.
Wenger is proud that the Chinese manufacturer has noticed Kivi. He told the Kyiv Post that the Chinese investor appreciates Kivi’s quick development and efficiency and the responsibility of its team.
It is the company’s second big deal in recent months. In October, Kivi signed an agreement with Google to manufacture a new model of smart TVs that work with Google’s operating system, enabling video streaming to the TV from other devices.
During the pandemic, the television market thrived as people spent more time at home, watching movies or series, according to Wenger.
Although demand for their new devices was high throughout the year, the company struggled during the “weekend lockdown” imposed by the government in October-November, which is when people are used to buying more. Online sales at the time couldn’t compensate for the closure of the physical stores, Wenger said.
Kivi comprises nearly 15% of the local television market, according to the company’s vice-president of manufacturing and innovation Evgeniy Rudenko. Its TVs are cheaper than those produced by LG or Samsung, the most popular brands. Kivi’s main competitors on the market are cheap Chinese brands like Xiaomi, Rudenko said.
For now, Kivi works in four markets: Ukraine, Belarus, Russia and Kazakhstan. The company was founded in 2016 and has produced over 1 million smart TVs since then. Kivi employs over 200 people and has offices in six countries, including Ukraine.
The company manufactures TVs in factories in Europe and Asia, including the Chinese city Shenzhen.
