Appliance makers chart big overseas expansion

Employees work on a TV production line at Hisense's industrial park in Atlantis, Western Cape province, South Africa, in April. (WU XIAOHUI/CHINA DAILY)

Chinese home appliance makers are ratcheting up efforts to expand their presence in overseas markets and increase investments in localized operations covering research and development, production and marketing.

This is part of a broader push to seek new revenue sources and enhance the competitiveness of domestic enterprises globally.

Experts said establishing overseas manufacturing bases and production lines not only helps in taking China's advanced manufacturing, R&D and management capabilities abroad, but also creates job opportunities for local people and boosts the international awareness and influence of Chinese brands.

They also said that enhancing global operational capacity will help Chinese manufacturing enterprises better utilize global resources, thus further promoting the transformation and upgrading of China's traditional manufacturing sector, given that the country has placed great emphasis on establishing a modern industrial system.

Chinese home appliance maker Hisense Group has accelerated steps to expand its footprint in Europe, Africa, the Americas, the Middle East, Australia and Southeast Asia and ramped up its investment in technological innovation to target high-end markets abroad.

Jia Shaoqian, chairman of Hisense, said the company has set up 26 R&D centers, 36 industrial parks and production bases and 64 overseas branches across the globe.

Jia also highlighted the company's determination and commitment to pressing ahead with its globalization strategy.

Jia said the company has established a complete industrial system, including R&D, production, sales, supply chain and services, while making forays into overseas markets, in order to better serve local markets and consumers. It aims to strengthen capacities in localized manufacturing, research and development, and talent cultivation.

Hisense's revenue reached 202.2 billion yuan ($28.6 billion) in 2023, while its overseas sales stood at 85.8 billion yuan, accounting for more than 42.5 percent of the company's total revenue.

The Qingdao, Shandong province-based company has invested heavily in Africa.