Employees at work at the Hisense manufacturing plant in Atlantis, Cape Town. (Picture: People’s Daily Online / Sissy Cheung)

Datafrom various sources suggests that a much tougher year lies ahead for foreign investors in SA due to the challenging domestic macroeconomics that exist in the country. Despite this, some Chinese enterprises such as Hisense are still focusing on developing local business and becoming more deeply rooted in the country. Chinese consumer electronics and home appliances manufacturer Hisense opened new headquarters in Century City in the northern suburbs of Cape Town in June 2015.
According to reports, the move was due to “increased sales and production necessitating even greater job creation”.

Having entered the South African market in 1996, Hisense has maintained rapid growth in sales over the years. In 2013, it established a manufacturing plant in Atlantis, about 40km away from the Cape Town CBD. Capable of producing 400,000 televisions and 400,000 refrigerators a year, the R350m investment directly created 700 jobs for the area while indirectly creating 3,000 jobs.

Aside from business investments, Hisense has spared no effort when it comes to strengthening ties with the local com- munity and its consumers, seeing this as an essential part of success in the region. The first step it took was wildlife protection.

In the same month it opened the factory, Hisense donated eco- friendly refrigerators to the Southern African Foundation for the Conservation of Coastal Birds to keep food fresh for penguins. It also sponsored the Hermanus Whale Festival in 2014, during which time it displayed videos of sea life conservation throughout the festival.

“We’ve been in SA for more than 20 years and have become a proud South African home appliances enterprise. We are willing to stay, contribute and improve the living conditions of the local community,” Aaron Wang, the financial director of Hisense South Africa, told the People’s Daily Online.

“Hisense cares for the under- privileged and always considers how these people can really benefit from us. So we make sure our campaigns benefit different groups such as orphans, students and the disabled,” Wang explained.

Through charitable events, Hisense has built up its reputation among local South Africans. Its products are widely used in various campaigns. The company has donated television sets and raised funds for autistic children and orphanages in the country for years. It has spon- sored high school students, the Atlantis SAPS station and the Cape Town Chinese Committee Police Forum.

It also partnered with the Nelson Mandela Foundation and the country’s leading energy saving campaign, 49M, in 2013. Speaking at a signing ceremony in Cape Town, Pieter Pretorius, Eskom strategic marketing senior manager, said the partnership between 49M and Hisense was in line with the initiative’s strategic intent to join forces with businesses on projects that promote sustainable living in response to the country’s constrained power system.

Every month, about 80 units of high quality wood used for packaging of refrigerator panels are disposed of at the Hisense factory. In order to efficiently make full use of this wood, the company began working with a local wood manufacturer to make tables and chairs, which are then donated to underprivileged communities, retirement homes and schools.

Meanwhile, Hisense is sup- porting local innovative SMEs by sponsoring the United Nations Environment Program’s SEED Award. Once again it is a long- term project focused on sustain- able development.

Wang elaborated on the reason why Hisense is so keen on these campaigns: “Only when we deepen our understanding of our customers, will we be able to truly get to understand their needs, build connections with them and integrate into the community.”

Its receipt of the Award of Excellence at the Social Responsibility Awards for Chinese Enterprises in SA has encouraged its counterparts to learn from its experience in playing a part in local society.

The Social Responsibility Awards for Chinese Enterprises in SA were announced in December 2014, the first of their kind on the African continent.

The event was founded by the Embassy of China in SA and organised by the South Africa- China Economy and Trade Association (Saceta), also known as the Chinese Enterprises Organization in SA.

Judges consisted of representatives from Saceta, the Chinese Embassy and local media outlets. Several things were taken into consideration, such as enterprises’ contributions to the local economy, employment, technology and public welfare.

Distinctive awards were given to nine outstanding Chinese enterprises in this country, including Hisense, Sinosteel, Huawei, FAW, SANY, Bank of China, China Construction Bank, Gold One International and Ray- al Ceramics.

(The story was originally published on Business Day on January 29th, 2016.)