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Appliance makers chart big overseas expansion(2)

2024-10-15 11:15:57China Daily Editor : Li Yan ECNS App Download

According to Jia, Hisense entered the South African market 30 years ago and built an industrial park covering an area of more than 100,000 square meters in the country, creating over 1,000 direct employment opportunities and more than 5,000 indirect ones.

"Over the past three decades, Hisense has deeply integrated with African enterprises within the continent's industrial and supply chains," Jia said.

Sales of Hisense's televisions and refrigerators have taken the top spot in the South African market, he added.

Jia said Hisense is speeding up its business footprint in Nigeria, Angola, Egypt, Algeria and Morocco, with the recent investment focus on North Africa.

For instance, the company signed an agreement with local partners to establish a new factory in Egypt in August. The plant will cover an area of about 200 mu (13.33 hectares), and commence production next year.

In addition to meeting local demand in Egypt, the products made by the factory will be exported to 21 countries and regions, including the League of Arab States, North Africa and East Africa before gradually expanding into West Africa, the European Union and the Americas.

The company has also helped build an intelligent bus system in Ethiopia's capital Addis Ababa and improved the operational efficiency of local public transportation.

The project is the first of Hisense's intelligent transport business overseas and is expected to optimize the travel experience of local residents.

Fang Xueyu, president of Hisense's international marketing unit, said localization is at the core of globalization, and companies need to satisfy demand from local consumers and provide products suitable for local markets.

Apart from the African market, the company has also accelerated its expansion in Europe, having set up six R&D centers and five major manufacturing bases, with sales revenue in the continent rising 19.5 percent year-on-year to 3.8 billion euros ($4.15 billion) last year.

Data from market consultancy AVC Revo showed that the shipments of Hisense TVs in Europe increased in the first quarter of this year by 35.9 percent year-on-year.

The company accounted for 13.6 percent of global TV shipments during the same period, ranking second in the world, according to market research company Omdia.

Moreover, it has boosted brand awareness and influence on the global stage via sponsorships of major world-class sporting events, including prominent soccer tournaments like the 2018 FIFA World Cup in Russia, the 2022 World Cup in Qatar, and UEFA 2016, 2020 and 2024.

"It is inevitable that Chinese home appliance manufacturers are expanding their footprint overseas for new profit growth points and long-term development, as the domestic home appliance market is almost saturated," said Zhao Meimei, assistant president of Beijing-based market consultancy All View Cloud, which specializes in home appliances.

Building a sound global industrial chain and enhancing operational capacity in the overseas markets will help Chinese home appliance companies make better use of global resources, reduce operational costs and improve management efficiency, Zhao added.

She highlighted the growing importance of China's manufacturing on the global stage as the country has become the world's largest manufacturing hub and boasts complete industrial chains.

"Globalization is both an opportunity and a challenge for Chinese home appliance manufacturers," she said.

This will promote the sector's high-quality transformation and upgrading, Zhao added.

Exports of Chinese-made home appliance products have become a bright spot.

According to the General Administration of Customs, China's exports of household appliances rose 9.9 percent year-on-year to 617.42 billion yuan last year.

"Expansion into overseas markets will not only relieve the pressure of high inventories in the domestic market, but also increase the international influence of Chinese home appliance companies," said Dong Min, secretary-general of the China Video Industry Association.

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