China's exports of large home appliances moves onto fast track

(People's Daily Online) 10:31, June 29, 2021

China has seen thriving development of large home appliance exports in recent years. In the first quarter of this year, China's exports of household appliances totaled 147.94 billion yuan ($22.9 billion), an increase of 63.4 percent year on year, according to statistics from the General Administration of Customs.

Buyers look at the displayed home appliances at the 126th China Import and Export Fair, also known as the Canton Fair, in Guangzhou, south China's Guangdong Province, Oct. 15, 2019. (Xinhua/Deng Hua)

Hisense, a Chinese multinational white goods and electronics manufacturer, took advantage of its role as the first Chinese firm to become a sponsor of UEFA EURO 2016 to vigorously expand its overseas market over the past few years.

"Receiving the endorsement of a top event like the UEFA EURO can save sponsors and brands five to eight years in penetrating overseas markets," said Ding Minghao, a former vice chief operating officer at Shankai Sports, a Beijing-based sports marketing service company.

Hisense saw overseas revenues of 54.8 billion yuan in 2020, accounting for nearly 40 percent of the group's total revenue. Its revenue from the European market surged 113 percent this year compared with the same period last year, with total earnings in key markets such as Poland and France jumping by more than 355 percent and 185 percent respectively.

Other major appliance manufacturers from China such as GREE, Midea and other brands are also scrambling to expand their overseas influence by making their presence felt at globally renowned stadiums, while home appliance brands such as TCL, Meiling and Vatti are looking to integrate into a larger international market by joining hands with internationally influential athletes.

In addition to enhancing their brand recognition among overseas consumers, these Chinese manufacturers are speeding up when it comes to offering more suitable products targeting these markets.

For instance, in targeting the UK market, Hisense adjusted the speed of its tumble dryers from 1,200 rpm to 1,400 rpm, thus reducing the drying time for clothes. In the same vein, Haier, another Chinese multinational home appliances and consumer electronics company, expanded the capacity of its refrigerators for the Pakistan market.

"The global home appliance market is very complex, and each country has its own tax policies, sales channels, customs and consumer preferences. Therefore, before entering a specific market, we will adopt customized strategies," explained Zhang Qingfu, vice president of Haier Overseas Electric Appliances Corp. Ltd.

In the first quarter of this year, Haier's overseas market sales revenue increased by 24.6 percent year on year, while its operating profit rose by 135 percent. 

(Web editor: Hongyu, Du Mingming)


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