(Yicai) Nov. 27 -- BSH Home Appliance Group’s China division will become the global innovation engine of the German white goods maker and the focus in the future will be on research and development in China, the president of the firm’s China arm told Yicai yesterday.

"We hope to apply China's innovations and new technologies to global products, as this is crucial to our future development," Simon Song said.

BSH upgraded its China R&D Center in Nanjing, which cost CNY400 million (USD55.1 million) to build, to its Global R&D Center in June. The BSH China Talent Center was unveiled at the same time.

Certain BSH products that were developed and manufactured in China, such as its integrated washer-dryer, are now being sold on worldwide markets, Song said. The China division is deepening its cooperation with scientific research institutions and universities in China, he added.

The China market is one of the largest and most dynamic home appliance markets in the world, and it is one of Munich-based BSH’s most important markets globally, Song said.

Chinese consumers are very willing to try new things, especially innovative and interconnected household devices, Song said. The penetration rate of emerging home appliances such as dishwashers and dryers in China is still low, and the growth rate of these machines is faster than that of mainstream white goods such as refrigerators and washing machines.

BSH continues to go from strength to strength in the country. Earlier this month, the two millionth dishwasher rolled off the production line in its factory in Chuzhou, eastern Anhui province. The company's sales of embedded water purifier sales in China more than quadrupled last year from the year before.

China’s trade-in subsidies have boosted sales of high-end home appliances, particularly those costing more than CNY10,000 (USD1,400), Song said. More new products are expected to hit the shelves at a faster rate.

Haier, Midea and other rivals have recently launched high-end sub-brands to seize part of the high-end home appliance market dominated by multinational brands. BSH needs to continue to strengthen technological innovation and speed up the marketing of new products, Song said.

Editor: Kim Taylor