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In 2002, Hisense publicly released its "Seven Army Regulations" in quality management):

1. Excellent quality can not flourish a company, but one quality failure may lead to permanent damage of the entire business.
2. The consumer is the only judge of quality.
3.Technical innovation is fundamental to product quality.
4. To treasure suppliers is to treat well ourselves.
5. Competent personnel ensure high-quality products.
6. Innovation is important. However, you should never change the quality standard and the traditional, but applicable, methods on the grounds of innovation.
7. Quality is the traffic light of financial indicators.

These regulations are Hisense’s solemn commitment to mass consumers as well as the Employees' Code of Conduct in quality that must be strictly abided by as an essential part of Hisense culture.

Zhou Houjian, Chairman of Hisense Group, believes that, "Quality Management should be reasonable and strict. Quality failure is encouraged if not handled harshly and can lead to a loss of customers, market share, and the strong reputation we’ve thus far built ourselves.”

In Hisense, "quality" is an important indicator of the efficiency of our management. If quality failure occurs, the General Manager of the Quality Department, or the principals directly involved, will be punished with a possible demotion or termination.

Excellent quality can not flourish a company, but one quality failure may lead to permanent damage of the entire business
A person's fate is determined by his character and the fate of an enterprise is determined by its product quality. Therefore, an enterprise’s product quality represents the character of the organization. Improving staff quality is a prerequisite for quality assurance, and respecting people is especially crucial, because only when we respect people will they be dedicated to their work.

Since the 1990's, Hisense has insisted in regarding quality and financial performance as the "No.1 project ". All subsidiary General Managers oversee quality themselves and link quality tests directly to profits. At an important economic conference, the VP responsible for the quality will provide a special report concerning this element, which indicates the utter significance that is placed on quality throughout Hisense Group.

The consumer is the only judge of quality
Business development, production and sales must all be geared toward customer satisfaction as the fundamental purpose of an enterprise is to maximize profit for shareholders and the society. Profit is mainly generated through end-users. Therefore, customer satisfaction is crucial to our business. At Hisense, we hold our end-users’ opinions of our products at the highest regard, as the end-user is the only true judge of quality.

Technical innovation is the fundamental of product quality
Hisense believes that the company’s capabilities of its core competences decide the level of its technological innovation. Technological innovation is not only creating new products, but it’s also improving the design and manufacturing quality by introducing new technologies.

To treasure suppliers is to treat ourselves well
In order to improve or ensure the product quality, knowing the value in our suppliers is a must. Hisense has always insisted that damaging or depriving suppliers’ interests is damaging our own company. In Hisense, specially-qualified engineers are dedicated to help the upstream suppliers in training, diagnosis, improvement, and innovation, so as to help suppliers and improve the quality of raw materials.

In the procurement course, Hisense insists "quality first, price second", and comply with our procurement philosophy of "99% = 0", "1 = 100%". For instance, if there’re 100 components for one product, as long as one single failure occurs, the product is regarded as an unqualified one. And if we add 1 yuan more in ensuring the component, there will be a 100 yuan return in reducing service cost and increasing the brand value.

Hisense also insists on high investment on manufacturing equipment, which, although it is quite expensive, the return-on-investment will far exceed the cost and input devices will optimize quality.

Innovation is important. However, we should never change the quality standards and the traditional, but applicable, methods on the grounds of innovation
Each appliance product will go through a series of tests, including electromagnetic compatibility, acoustics indicator, high temperature, high-humidity, freezing, and falling tests. In addition, before a new product is launched into the market, there will be 20 trial productions which are used by internal staff, followed by 200 units of low-volume follow-up sales test and a subsequent 2000 sets of regional launching. Not one of these steps can be omitted in order that quality is ensured. Our QC inspectors are not allowed to skip a beat.

Hisense sticks to the principle that we should focus less on advertising and focus more on word of mouth, because we believe that our profits are based on a positive reputation. Therefore, our focus is winning over the consumer as an individual rather than merely trying to promote our brand to the masses. This principle is consistent and strongly correlated with our stance on quality. If just one product has poor quality, we have lost that consumer as a customer and possibly many more, as that consumer will tell others of his or her experience.

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