- 2022-05-09
Key opportunities for Chinese home appliance brands to go overseas
On March 29, at the just-concluded annual hisense brand data release conference, Liu Bin, vice president of Hisense International Marketing Company, first disclosed several small goals for Hisense to go to sea: Sales of ULED TV, its high-end products, have increased by 40% year-on-year, overseas sales of Hisense Laser TV have doubled, new home appliance RESEARCH and development centers have been established in the U.S. and Japan, and nearly 100 flagship stores of high-end brands have been established around the world.
Behind the "small goal" is hisense's internationalization strategy of "future development of Hisense and major overseas investment", which started in 2006. Now, this goal is accelerating into reality.
On The afternoon of March 23 (Dubai time), hisense, a Chinese company, was crowned the winner of the 28th Dubai Quality Global Awards held by the Dubai Department of Economy and Tourism.
It is worth noting that the Dubai Quality Global Award, which was launched in 1994, is one of the most prestigious awards in Dubai. It recognises multinational companies that have achieved their own outstanding development and contributed to local economic and social development. It is also the only award signed by the Vice President of the UAE and The Ruler of Dubai. The judging panel is composed of government representatives, business leaders with practical experience in quality management system and expert consultants, and the candidate enterprises are strictly selected over a period of 3-4 months. The fact that Dubai is at the heart of the Middle East, which is known to have some of the world's most abundant oil resources and is therefore mostly wealthy, means that winning unanimous approval from the judges of the Dubai Quality Global Awards is no mean feat.
As we have learned, participate in this dubai quality global award selection not only has the home appliance enterprise that comes from China, still have the centennial home appliance magnate that comes from international people. But in the end, after a rigorous selection by a jury, Hisense from China won. In this regard, Norbert Herzog, chief consultant of global strategy of GfK, a global market consulting agency, believes that in the global home appliance market, Chinese home appliance brands usher in a critical moment of transformation. Hisense's winning of the Dubai Quality Global Award may mean that China's leading home appliance companies, represented by Hisense, have gained equal power with global consumer electronics giants in the Middle East market.
From "OEM" to "lead", Chinese home appliance enterprises to achieve a gorgeous turn around
In fact, from the past relying on OEM mode "OEM" to go to sea, to now relying on technological advantages to gain recognition in the global market, Chinese home appliance enterprises have completed a magnificent transformation in just 30 years, its speed and quality undoubtedly attract the attention of the world.
"If Chinese home appliance enterprises want to continue to develop and grow, they can only choose the most difficult way -- to do their own brands and build their own ships." Hisense Group Holding company president Jia Shaoqian has publicly said. Subsequently, Enterprise of home appliance of Chinese head begins to try "go to sea", of course, show a person with independent brand. On April 30, 1999, Haier set up a production plant in South Carolina of the United States. After that, Haier in Europe and Haier in the Middle East were inaugurated successively. In 2001, hisense put into operation a new production line at the factory of South Korea Daewoo, which was merged by Hisense in South Africa. Soon after, Changhong also announced that it signed an agreement with Russian enterprises to export air conditioning production lines, and subsequently, Changhong exported color TV production lines from Indonesia.
Next, with China's manufacturing, research and development, the constant improvement of the ability of supply chain, home appliance manufacturers in our country to open to "the independent brand" + "acquisition of foreign brands" realized the way out to sea, after years of market exploration and product research and development, the Chinese electrical appliances independent brand's influence is gradually expanding, really from the "home appliances made in China" to "home appliance brand made in China". At the technical level, it ushered in a new stage from "OEM" to "leading", providing a steady flow of endogenous power for the rise of China's home appliance brands.
"As a globally competitive industry, home appliance enterprises cannot form lasting core competitiveness if they only satisfy domestic needs and do not build their own brands overseas, and their future development is bound to hit the ceiling soon." Jia shaoqian said.
Looking back on hisense's internationalization, Jia Shaoqian frankly said that although it started from OEM OEM, Hisense always believes that internationalization must be a comprehensive internationalization of product research and development, manufacturing, brand and marketing. "Hisense entered the market with high-quality products, stabilized the market through brand building, and won the respect and trust of the market by fulfilling its social responsibilities. Hisense's persistence finally paid off." Over the years, Hisense has brought its brand and popularity to a new height in the world through the construction of manufacturing bases and R&D centers, brand acquisition, localized operations, public welfare activities and continuous sponsorship of the world's top sports events. With the improvement of technology and the accumulation of experience, Chinese home appliances in overseas markets have the strength to keep pace with the global consumer electronics giants.
From 2020, laser TV will enter the "highlight moment" in the overseas market. Hisense Laser TV has successfully expanded to the United States, Australia, Germany, France, the United Arab Emirates, South Africa and other countries and regions, entered the local mainstream sales channels, and successfully entered dubai royal Family, Dubai police station and many high-end real estate.
It is because of the continuous adherence to technological innovation and product quality that Chinese household appliance brands occupy the overseas market more and more briskly. In the second half of 2021, Haier Zhijia will put into operation 3 overseas factories; In 2020, midea's overseas revenue accounted for nearly half...
And on March 24, local time, hisense officially unveiled its first flagship store in the Middle East, marking its regional expansion plan as an official sponsor of the 2022 Qatar World Cup.
Foreign media reported that hisense's first flagship store in the Middle East fully demonstrated the strong strength of the Chinese enterprise in the fields of black, white and kitchen electric appliances. ULED television, laser TV, refrigerators, washing machines, dishwashers and microwave ovens have attracted the attention of the Dubai Ministry of Economy and Tourism and the local mainstream media.
"Dubai and Hisense share many common values, including technology, innovation and a constant priority on the well-being of our customers," said The Director of Business Excellence at dubai's Department of Economy and Tourism at the presentation of the Dubai Quality Global Awards. While bringing happiness to users in the Middle East, Hisense's "road out to sea" is becoming smoother. For the overseas development of Chinese household appliance brands, dubai and Hisense are both epitomes today, and may be more worthy of expectation in the future.