Appliance makers eye bigger global pie | investinchina.chinaservicesinfo.com

Appliance makers eye bigger global pie

By FAN FEIFEI China Daily Updated: Oct 17, 2024
TCL's booth at CES 2024 in Las Vegas. [Photo/IC]

Chinese home appliance makers have intensified efforts to make forays into overseas markets to seek new sources of revenue, and are upgrading and optimizing their products to make them "smarter", industry experts said.

Consumer electronics major TCL Technology Group Corp is beefing up its global operational capabilities, with a key focus on three core business segments covering intelligent terminals, semiconductor displays and photovoltaics.

"Our intelligent terminals unit has established production bases in Vietnam, Poland, Mexico, Brazil and India, and we will further improve localized production and operations," said Li Dongsheng, founder and chairman of TCL, emphasizing that the company plans to strengthen its global layout in industrial chains, marketing, and research and development.

TCL is expanding its presence in North America by boosting production capacity of big-screen TVs at its Mexico factory. It has also established photovoltaic cell and module factories in Malaysia, the Philippines and Mexico through joint ventures. "Looking ahead, we will actively consider increasing industrial centers in Africa and strengthening our business in the Middle East," Li said.

Highlighting that globalization is an unstoppable trend for Chinese enterprises, and boosting global competitiveness has always been an important strategy for TCL, Li said Chinese manufacturers should shift from exporting products to exporting industrial capacity, accelerate the building of global industrial chains and improve localized operations in overseas markets.

TCL has set up 46 R&D centers and 33 manufacturing centers around the world, with operations in more than 160 countries and regions. In the past five years, TCL's overseas revenue has risen from 59 billion yuan ($8.29 billion) to 125.3 billion yuan, with an average annual growth of 17.6 percent.

Data from global market consultancy Omdia showed that global shipments of TCL's TVs reached 25.26 million units last year — ranking second worldwide.

The European market is of great significance to the company's global layout. Li Yongping, general manager of TCL Industries Holdings' European marketing department, said sales on the continent surged more than 50 percent year-on-year in the first half, mainly driven by product upgrades and sales channel expansion.

TCL's products sold in Europe have expanded from TVs to air conditioners, washing machines, refrigerators and mobile phones, Li said. He is confident that the European market will maintain its growth momentum in the current half.

Chinese home appliance makers are expanding their presence in the Middle East. In September, Haier Smart Home (HSM), a subsidiary of Haier Group, held a groundbreaking ceremony for the second phase of its industrial park in Egypt.

With an investment of about $40 million, the second phase of the project will cover an area of 50,000 square meters and have an annual production capacity of 300,000 units of home appliances, including refrigerators and freezers, providing about 1,000 job opportunities.

The first phase of the industrial park was inaugurated in May, with trial production of air conditioners, TVs and washing machines. The industrial park is expected to accelerate HSM's presence and growth in the Middle East and Africa by leveraging its global supply chain to serve consumers in the region.

Zhou Yunjie, chairman and CEO of Haier, said the construction of the second phase of Haier Egypt Ecological Park will further optimize the company's product portfolio in Egypt, and other regions of Africa.

Midea Group has set up an office in Dubai, the United Arab Emirates. It announced in November the launch of its third manufacturing base in Egypt. With a total investment of 830 million yuan, the new factories, where refrigerators and washing machines will be produced, will see operations likely begin in the second half of 2025.

It is inevitable that Chinese home appliance manufacturers are expanding their footprint abroad 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.

Building a sound global industrial chain and enhancing operational capacity in overseas markets will help Chinese home appliance makers utilize global resources, reduce costs and improve management efficiency, Zhao said.

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Appliance makers eye bigger global pie

By FAN FEIFEI China Daily Updated: Oct 17, 2024
TCL's booth at CES 2024 in Las Vegas. [Photo/IC]

Chinese home appliance makers have intensified efforts to make forays into overseas markets to seek new sources of revenue, and are upgrading and optimizing their products to make them "smarter", industry experts said.

Consumer electronics major TCL Technology Group Corp is beefing up its global operational capabilities, with a key focus on three core business segments covering intelligent terminals, semiconductor displays and photovoltaics.

"Our intelligent terminals unit has established production bases in Vietnam, Poland, Mexico, Brazil and India, and we will further improve localized production and operations," said Li Dongsheng, founder and chairman of TCL, emphasizing that the company plans to strengthen its global layout in industrial chains, marketing, and research and development.

TCL is expanding its presence in North America by boosting production capacity of big-screen TVs at its Mexico factory. It has also established photovoltaic cell and module factories in Malaysia, the Philippines and Mexico through joint ventures. "Looking ahead, we will actively consider increasing industrial centers in Africa and strengthening our business in the Middle East," Li said.

Highlighting that globalization is an unstoppable trend for Chinese enterprises, and boosting global competitiveness has always been an important strategy for TCL, Li said Chinese manufacturers should shift from exporting products to exporting industrial capacity, accelerate the building of global industrial chains and improve localized operations in overseas markets.

TCL has set up 46 R&D centers and 33 manufacturing centers around the world, with operations in more than 160 countries and regions. In the past five years, TCL's overseas revenue has risen from 59 billion yuan ($8.29 billion) to 125.3 billion yuan, with an average annual growth of 17.6 percent.

Data from global market consultancy Omdia showed that global shipments of TCL's TVs reached 25.26 million units last year — ranking second worldwide.

The European market is of great significance to the company's global layout. Li Yongping, general manager of TCL Industries Holdings' European marketing department, said sales on the continent surged more than 50 percent year-on-year in the first half, mainly driven by product upgrades and sales channel expansion.

TCL's products sold in Europe have expanded from TVs to air conditioners, washing machines, refrigerators and mobile phones, Li said. He is confident that the European market will maintain its growth momentum in the current half.

Chinese home appliance makers are expanding their presence in the Middle East. In September, Haier Smart Home (HSM), a subsidiary of Haier Group, held a groundbreaking ceremony for the second phase of its industrial park in Egypt.

With an investment of about $40 million, the second phase of the project will cover an area of 50,000 square meters and have an annual production capacity of 300,000 units of home appliances, including refrigerators and freezers, providing about 1,000 job opportunities.

The first phase of the industrial park was inaugurated in May, with trial production of air conditioners, TVs and washing machines. The industrial park is expected to accelerate HSM's presence and growth in the Middle East and Africa by leveraging its global supply chain to serve consumers in the region.

Zhou Yunjie, chairman and CEO of Haier, said the construction of the second phase of Haier Egypt Ecological Park will further optimize the company's product portfolio in Egypt, and other regions of Africa.

Midea Group has set up an office in Dubai, the United Arab Emirates. It announced in November the launch of its third manufacturing base in Egypt. With a total investment of 830 million yuan, the new factories, where refrigerators and washing machines will be produced, will see operations likely begin in the second half of 2025.

It is inevitable that Chinese home appliance manufacturers are expanding their footprint abroad 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.

Building a sound global industrial chain and enhancing operational capacity in overseas markets will help Chinese home appliance makers utilize global resources, reduce costs and improve management efficiency, Zhao said.

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