The household electrical appliance enterprises experienced deeper challenges this year as the challenge of the foreign trade situation intensified. “There are still many negative factors affecting the export business this year.” Wang Yuechun, director of Changhong’s overseas strategic development department, accepted an analysis of the export situation of home appliances during an interview with China National Grid yesterday. He believes that the international situation is unstable. There is still a large negative impact on the export market. Enterprises should continue to pay attention to the trend of the situation. At the same time, the non-trade barriers set by various regions or countries will have an indirect impact on the export market. “This is because the global economic hotspot has changed and each government has Market intervention will increase." Wang Yuechun said.

Zhang Zhenghu, deputy general manager of Gree Overseas Sales Co., Ltd., has similar feelings about the export situation. He told the China National Grid that the current trade barriers in different countries continue to increase, and trade protection and political risks will continue. This year, air-conditioning exports should be under greater pressure.

However, on the other hand, the severe export situation corresponds to the increase in the strength of enterprises and “the competitiveness of China’s home appliance industry has increased,” Wang Yuechun said. Chinese brands have risen globally, and 80% of global household electrical appliances are manufactured in China. This is global. Consumers know the facts.

"Although we have gradually emerged, the core technologies and core competencies in the previous stage were in the hands of Japanese and South Korean companies and other foreign companies," Wang Yuechun added, intellectual property rights and patent issues are likely to be another one. As for the influencing factors of export business, if Chinese companies have surpassed technology, they will have more competitiveness.

The core competitiveness is the product

This year's export business, companies still work hard to break through the core competitiveness of the product.

At the opening of the Spring Fair yesterday, Changhong welcomed the merchants of this year with a full range of smart appliances. According to Wang Yuechun, at present, TVs, refrigerators, and air-conditioning products have entered the era of intelligence. The demand for smart appliances in foreign markets is significant. At the Spring Fair, the basic functions of Changhong's new products include features such as voice and interactive Internet.

Another trend is energy saving. Zhang Zhenghu introduced that Gree demonstrated the Almighty King Air Conditioner equipped with the core technology of 1 Hz. This product is for the first time for overseas markets. “This air-conditioning product's double-stage enthalpy-increasing compressor technology can make the air conditioner adapt to the lowest operating temperature. It reaches -30° and reaches a maximum of 50°. It has achieved good results in extremely cold regions such as Germany and Russia, as well as in hot regions such as the Middle East and South Africa. At present, customers have placed a lot of orders on Almighty King Air Conditioning, said Zhang Zhenghu.

In addition, in terms of commercial air conditioners, Gree also demonstrated a full DC inverter centrifuge at the Spring Fair. Its commercial compression technology is the first in the world. Its energy efficiency ratio is 11.68, and energy saving is over 40%.

Export strategy change

Although companies still face a more complex export environment, according to company experience, measures such as increasing the proportion of self-owned brands and setting up factories in overseas markets are more dominating measures, which have a significant effect on resolving market risks and improving export competitiveness.

Since the beginning of this year, Changhong’s export business has paid more attention to cooperation with big brand customers and merchants and Changhong brand cooperation. “Cooperating with Changhong brand, this is a development trend. In the past few years, Changhong has promoted its own brand and has grown rapidly, with more and more manufacturers. Focus on Changhong brand, hope to introduce the Changhong brand to foreign markets, and they also see the strength of the products behind the Changhong brand,” says Wang Yuechun.

The growth of private-owned brands in foreign markets is evident in Gree. Zhang Zhenghu introduced that when Gree last year continued its financial crisis, it invested in its own brand in the US market with the goal of obtaining the space released by other brands as soon as possible. In more than a year, Gree’s own brand sales nearly doubled in the United States last year.

Although the overall exports of European and other traditional markets dropped seriously, Zhang Zhenghu introduced Gree's growth in Russia, Japan and other markets.

"We have played a role with Daikin's joint venture in Japan. Last year, the yen's devaluation was unfavorable for China's exports, but Gree achieved growth." Zhang Zhenghu further analyzed the advantages of own-brand exports and setting up factories there. "Currently in the Middle East Gree own brand sales accounted for more than 50%, Brazil has factories, the local adjustment of tariffs after the import fatigue, but the factory has evaded these, Gree is currently the second largest market share in Brazil, the highest price of the product " .

It is expected that the overall growth of exports throughout the year

Regarding the export situation this year, Wang Yuechun decided that there are three factors that will promote the overall growth of home appliance exports: First, the financial crisis is coming to an end, the market has already rebounded, and the global economic situation has turned for the better. This has stimulated the market. Second, the efforts made by China’s home appliance companies in adjusting the industrial structure have made China’s home appliance manufacturing capabilities unique in the world. No country can compare with China, and the core competitiveness of China’s home appliance industry has increased. In addition, the Japanese home appliance manufacturing industry has gradually weakened, providing a lot of room for Chinese products and brands.

From the data feedback point of view, home appliances exports are also tending to pick up. The results of the analysis conducted by the China National Grid Industry Center on customs data show that in February, the domestic home appliance enterprises exported 3.51 billion U.S. dollars, an increase of 8.5% year-on-year; the cumulative export value was 7.9 billion U.S. dollars, an increase of 12.7%, an increase of 6.2 percentage points over the end of the year.

The export volume of most household electrical appliances continued to grow. In February, the export of compressed refrigerators continued to grow. Exports of 2.6 million units this month represented an increase of 13.5%, which was higher than expected. The export of air-conditioners was 8.63 million units, which was 3.3% higher than the same period of last year. Microwave ovens exported 7.38 million units, an increase of 11.8%. Refrigerator exports 1.34 million units, an increase of 30.4%. Vacuum cleaners, fans, and drinking fountains emerged from the trough last year and resumed growth, with growth rates of 12.1%, 1.0%, and 19.3%, respectively. The China National Grid Industry Center believes that with the efforts of enterprises to improve their export transformation, the export of home appliances is expected to increase throughout the year.

Wang Yuechun said that in the first quarter, Changhong’s total exports amounted to 280 million yuan. Zhang Zhenghu introduced that Gree’s sales in the first quarter increased by more than 10%, profits increased by 14%, and it is expected to increase by more than 20% in the whole year. Both companies also judged that the overall export of home appliances will achieve positive growth this year.