Effort Needed to Overcome Chinese Home Appliance Export Problems

BEIJING, July 31 /Xinhua-PRNewswire/ -- General Electric Company (GE) with its hundred-year history has taken a leading role in the international home appliance industry. Who will take over the hundred-year business has become a global focal point. Formerly, international home appliances enterprises shifted their eyes to the Vietnam market with great expectation. But intense economical fluctuation occurred in Vietnam, and Chinese home appliances enterprises ( http://www.tootoo.com/w-Home_Appliances/ ), which have already built plants there or planned to set up a factory there, unavoidably are cautiously combing through their strategy again. These two matters in the international market have caused the Chinese home appliance industry to be deeply affected.

The president from Guangdong Midea Electric Appliances Co., Ltd ( http://www.tootoo.com/d-c15060041-GD_MIDEA_WATER_APPLIANCES_CO_LTD/ ) replied to a Tootoo.com interviewer, "The international home appliances industry is shifting its center and needs to be reorganized unceasingly. This is a business game, and we must participate in it." This sentence conveys that the Chinese home appliance industry will tend towards the "globalization" trend.

Actually, there is a long history of the Chinese home appliance industry participating in the global competition, from Haier's internationalization to TCL's transnational mergers, which indicates China's significant position in the global home appliance industry. Chinese home appliance sales make up 1/3 of the entire global market, including a 70% share of the air conditioner market and 50% of the electric fan market.

However, the inherent superiority of Chinese home appliances is fading away along with RMB's appreciation against the US dollar and the rising labor costs. This year, the growth speed of China's air conditioner and refrigerator ( http://www.tootoo.com/buy-conditioner_and_refrigerator/ ) exports has obviously slowed down. The entire industry has been seriously affected and some enterprises have even gone bankrupt.

For a long time, Chinese home appliances have relied on their low cost to gain superiority, while private brand product exports are very small. On the world market, the Chinese home appliance industry hasn't had brand influence, let alone seizing the developed-country markets without high value-added products. Worse, the Chinese home appliance industry has been too busy to deal with various environmental protection instructions and technical barriers. Thus, at present, Chinese home appliances ( http://news.tootoo.com/Electrical/ ) are just a participant in the industry. To succeed, China's industry needs to try to better itself day by day.

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