The latest data from the General Administration of Customs show that the export performance of China's home appliance category is eye-catching: in the first seven months of this year, home appliances including electric fans, washing machines, vacuum cleaners, microwave ovens, LCD TVs, and other home appliances cumulative exports of 409.19 billion yuan, a year-on-year increase of 18.1%, 11.4 percentage points higher than the overall growth rate of the country's exports. From March 2023 to July 2024, China's home appliance exports have been 17 consecutive months of positive year-on-year growth.
What are the current advantages and trends of China's home appliance exports? What problems do home appliance enterprises face while exporting their products and brands to the sea?
Industry chain advantage is obvious
In recent years, China's home appliances are recognized by the international market for their cost-effective and new technology applications. General Administration of Customs Statistics and Analysis Division Director Lv Daliang introduced, the majority of China's foreign trade business entities to actively adapt to market demand, and continue to promote product innovation and iteration, optimization and upgrading, coupled with the improvement of overseas demand, the release of policy dividends, customs clearance efficiency, to promote home appliances, cell phones as a representative of the export of consumer electronics products and other exports show continuous growth.
China has the world's most complete industrial categories, the most complete industrial system of manufacturing. The person in charge of China Household Electrical Appliances Association said that the mature and perfect supply chain system is the most important competitive advantage of China's home appliance industry. The cluster effect of the industrial chain to meet the needs of enterprises from design and development to production and procurement of one-stop demand.
In order to cope with the challenges of increasing labor costs and rising raw material prices, in recent years, China's home appliance enterprises have gradually come out of the past OEM mode, while actively transforming and upgrading, attaching importance to increasing R & D investment in order to enhance the added value of the product, turning to a new model of independent brand creation, and building up a strong overseas sales channels, in the global industrial pattern, and solidified the advantage of a firm footing. The continuous growth of export trade volume confirms this.
Zhang Jianfeng, Secretary General of China Household Electrical Appliances Commercial Association, said that China's home appliance industry has a complete industrial chain, strong manufacturing capacity, scale effect and cost advantage, and is unique in the global home appliance field. The global economic slowdown, part of the country's industry is affected by geopolitical conflicts, for China's home appliance exports provide opportunities for development.
With the global home appliance market size continues to expand, China's home appliance enterprises with a strong industrial chain advantage, technological innovation capabilities and brand influence, in the process of striding out to sea continue to make new achievements and new breakthroughs.
Hisense Group Chairman Jia Shaoqian said, compared with the past, intelligent, high-end, branding has become the development trend of China's home appliance industry, which has strongly promoted the export rebound and growth. It is by virtue of the supply chain system is perfect, industrial cluster effect is obvious and many other advantages, China's home appliance enterprises overseas blueprint gradually to the industrial chain, the value chain high-end climb.
Accelerate globalization layout
From capital to brand overseas, from the layout of the European and American markets to turn to the Middle East, Asia, Africa and Latin America market, China's home appliance enterprises overseas logic is also undergoing profound changes. Home appliance enterprises represented by Haier, Hisense, Midea, etc., have been actively laying out worldwide, establishing R&D centers, manufacturing bases and sales networks to build globalized high-end brands.
As the earliest batch of Chinese enterprises to go overseas, Haier Zhijia has always insisted on exporting and creating brands, and after years of overseas construction, it has laid out 10 R&D centers, 35 industrial parks and 143 manufacturing centers around the world, and owns seven globalized high-end brands, such as Haier and Casady, etc., which not only achieve solid revenue growth, but also achieve market leadership in many countries. on August 14th, the groundbreaking ceremony of Haier Zhijia was held at the air-conditioning industrial park of Chonburi in Thailand, which means that Haier Zhijia is a globalized high-end brand. On August 14, Haier Zhijia held a groundbreaking ceremony at the Chonburi Air Conditioning Industrial Park in Thailand, which means that Haier Zhijia's localized layout of the global “Trinity” has been accelerated again.
The person in charge of Haier Zhijia said that in recent years, Haier has continued to invest in the research and development of high-end energy-saving green products and technology upgrading, and has continuously listed high-end energy-saving products, which are widely recognized overseas. In the process of going abroad, different countries and regions have different cultures and consumption habits, home appliance enterprises based on user needs for product development, in order to win market recognition.
As one of the earliest batch of Chinese home appliance enterprises to go abroad, Hisense is also actively laying out the overseas market. on August 8, the signing ceremony of Hisense's Egyptian TV factory project was held. Hisense international marketing company, general manager of the Middle East Africa Ou Yang, the project is expected to be put into production next year, in addition to meet the local demand in Egypt, will also be exported to the Arab League, North Africa and East Africa and other 21 countries and regions, and gradually expand to West Africa, the European Union and the Americas. At present, Hisense has 34 industrial parks and production bases and 26 R&D centers around the world, forming a globalized layout of integrated research, production, marketing, supply and service.
In addition, Gree, Midea, TCL and other home appliance companies are also accelerating the pace of overseas factories. Gree Electric has built overseas production bases in South America, products in the Middle East, Europe, Southeast Asia and other markets to achieve sustained growth; the United States overseas brand has formed Toshiba, Midea, Comfee 3 full-category brands and Carrier, Eureka and other 13 sub-categories of professional brands.
Through the establishment of production bases overseas, China's home appliance enterprises to realize the international proliferation of industrial capacity, and enhance the competitiveness of the regional market. Zhang Jianfeng believes that China's home appliance enterprises overseas or has been iterated to the “localization of production capacity, localization of operations, brand cross-cultural, supply chain security” as the core of the value of the overseas stage, product uniqueness and differentiation shaping or into the future direction of development.
At the same time, more and more home appliance enterprises will focus on events and exhibitions. For example, TCL actively participate in various international product exhibitions, sports marketing strategy, through the European Cup, America's Cup, a number of star team cooperation, its brand recognition and market position in the global scope has been significantly improved.
Wanlian Securities analyst Pan Yunjiao said that the sea or still for the home appliance industry in the second half of this year, the main line of development. China's home appliance products have strong competitiveness in the global context, the future growth prospects of overseas markets is expected.
Enhance core competitiveness
China's home appliance export growth at the same time, but also faced with complex and severe external test. For example, sea transportation and railroad transportation of high freight prices to the entire home appliance industry to bring no small cost pressure, the international geopolitical complexity and change also brings a lot of uncertainty.
A relevant person in charge of home appliance enterprises frankly, the company's business to a certain extent dependent on overseas markets, once the export destination countries and regions of the major adjustments in trade policy, or the occurrence of a sharp downturn in the economic situation and other unforeseen events, may directly affect the demand for products, thus the company's export business of the sound operation of the potential risks.
In the process of the global economic cycle continues to change, the factors supporting the rapid growth of China's home appliance exports are changing. The relevant person in charge of China Household Electrical Appliances Association (CHEAA) said that the problems faced by home appliances going overseas are mainly the balance between short-term benefits and long-term strategies. Differences in the market environment, cultural barriers and lack of talent, increasingly fierce market competition, financial pressures, and supply chain and logistics issues may have an impact on the export business.