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(Yicai Global) April 17 -- Chinese home appliance manufacturers told Yicai Global during this year’s Canton Fair that they have shifted the focus of their expansion to emerging markets such as the Middle East and Russia, as exports recover.
Galanz Group is prioritizing market growth in Southeast Asia, the Middle East, and South America, said Chen Kaibin, the white goods maker’s executive in charge of overseas business. Exports, especially to Europe and North America, were weak in the second half of last year and the first quarter of 2023, but judging from current orders, they will improve by June, Chen noted.
On the first day of the Canton Fair, there were relatively fewer customers from Europe and North America but many Russians, Chen said, adding that more European and North American clients are expected to attend October’s event.
The 133rd China Import and Export Fair is China’s largest trade fair, commonly known as Canton Fair, is being held in Guangzhou from April 15 to May 5. This is the first time that the biannual event has been held offline since the Covid-19 pandemic started.
Hisense’s first-quarter exports maintained good growth momentum, as shipments of color televisions and white goods both jumped by double-digits from a year earlier, according to Wang Bao, marketing deputy general manager of the home appliance giant’s affiliate Qingdao Hisense International Marketing.
Exports to Europe and North America were weak last year, Wang added, noting that those to the Asia Pacific region and central and eastern Africa surged.
With the rebound in prices of liquid crystal displays for TVs and the drop in ocean freight charges to a reasonable range, Skyworth-RGB Electronics’ color TV exports are expected to jump by 20 percent to 30 percent next month from January, said Liu Dangdang, deputy general manager of the company’s overseas marketing department.
Central and East Africa, South and Southeast Asia, and Latin America are Shenzhen-based Skyworth’s core markets, Liu pointed out.
“We’re prudently optimistic that this year’s exports will be better than last year’s,” said the executive in charge of exports at leading air conditioner maker Gree Electric Appliances. “There was pressure during the first quarter, but the situation has begun to recover and will experience an upward trend from this month.”
Gree’s Brazilian plant plans to expand in the commercial air-conditioner market, the person noted.
Other Chinese home appliance makers have the Brazilian market in their sights too. Midea Group’s CNY700 million (USD102 million) Brazilian plant broke ground on April 12. Expected to kick off production in July next year, the factory will have an annual production output capacity of 1.3 million fridges and washing machines. TCL has also revealed plans to increase its investment in Brazil this year.
Editors: Shi Yi, Futura Costaglione