Chinese home appliance firms expand global market with great vigor

By upgrading their products and increasing outbound investments, Chinese home appliance companies have sped up their market entrance plans for foreign markets in recent years.

A Chinese TV manufacturer, Konka Group Co., Ltd., is one such company. In 2019, the company established a joint venture in Egypt with HOHO Electronical & Furniture Co., a local brand founded in 2009.

Photo taken on Aug. 1, 2019 shows a view of the opening ceremony of Konka's factory in Cairo, Egypt. (Xinhua/Wu Huiwo)

According to Liu Liangwu, deputy general manager of Konka’s overseas marketing center, the industrial production qualification and sales network of HOHO could provide a boost to Konka’s overseas expansion in the African market.

Salman, a local employee of the joint venture, who works at a factory located some 120 km south of the Egyptian capital Cairo, said there were about 600 workers who had received rigorous technical training before they officially started working there. “It’s not easy for us to get a job, so we cherish it very much,” said Salman.

The total demand for TV sets in Egypt and its surrounding markets is anticipated to exceed 20 million sets annually, meaning that there is a huge room for growth yet to be tapped by the joint venture, said Khalid Mustafa, secretary-general of the Cairo Chamber of Commerce.

Konka’s TV products have been well-received by Egyptian households because they are very cost-effective, said Mounir, a quality inspector at the joint venture, who added that he himself had bought two Konka TV sets for his family.

Home appliance companies in China have embraced a new profitable growth orientation by going global, while delivering a lot of benefits to local communities, including creating jobs, boosting the level of industrialization, and enriching the cultural life of local residents, as described in an article published in Egypt's Al-Akhbar newspaper.

In India, Chinese home appliance enterprise Haier has become a very competitive player by sticking to a localized strategy. Since establishing Haier Appliances India in 2004, the Chinese home appliance giant has amassed 17-years of experience in penetrating the Indian market.

Haier has paid a great deal of attention to customizing and localizing its products to meet Indian customers’ needs. One such attempt was the introduction of an upside-down concept for the vegetable crisper box installed in their fridges.

“After conducting proper research, we decided to install the veggies box at the top section of the fridge to ensure that people didn’t have to bend down while moving food in and out,” said Eric Braganza, president of Haier Appliances India. Traditionally, this kind of vegetable box is placed at the bottom of a fridge.

The company has also rolled out efficient washing machines that can work at a minimal or low level of water pressure and air conditioners with Haier’s self-clean technology and a built-in air purifier.

“These customized products have been well-received by Indian consumers, and the localization of products is the key to Haier’s success,” Braganza noted, further revealing that Haier’s industrial park in Pune city has hired a large number of local R&D personnel, with more than 95 percent of its sales team comprising local employees.

The company has achieved an annual sales volume of $680 million and now commands a market share of 7 percent in India.

According to Huang Decheng, general manager of Haier Appliances India, the company has established 25 technical support centers, one 24/7 contact center, 251 high-quality service centers, and 570 authorized service stations throughout India. The company was granted the award of “best service provider” in 2020 and 2021 in New Delhi.

Haier was also the only home appliance company in India to guarantee its ability to continue providing customer service amid the COVID-19 pandemic.