The 112th Canton Fair will officially kick off today in Guangzhou. Talking about the export situation this year, Xiao Youyuan, general manager of Gree Electric Overseas, said that the export situation of China’s home appliances has been in a period of bottoming out, and it may still hover in the low valleys in the coming months, and the export situation will gradually pick up next year.
Increasing the export intensity of self-owned brands has become a common measure for many mainstream home appliance companies to survive the "winter" of foreign trade. Gree hopes that its own-brand exports will grow by more than 50% year-on-year next year. Galanz’s Vice President Liu Guizhong, who is responsible for export business, also disclosed to the newspaper that in the next two years, the proportion of Galanz’s own brands in its microwave oven exports will increase from the current level of nearly 10% to 30%.
First, the "worst time" has gradually passed. "The export situation this year has not been imagined well." Xiao Youyuan said that the European debt crisis has caused the European market to be very poor. It is expected that the European market will be one to two years faster, and it will take only two to three years to gradually recover.
Indonesia and other resource-exporting Southeast Asian countries, due to China's poor economy and reduced demand for resources this year, the copper and coal that they sell to China are also declining, so the economic downturn has adversely affected the import of Chinese home appliances. The US and South American markets are tepid and have no ups and downs. The U.S. economic situation has improved slightly, but there has been no major increase in demand. However, the U.S.'s push for manufacturing returns has a greater impact on China. Inflation in Argentina and Brazil is serious, making the amount of imports smaller.
Xiao Youyuan said that the export situation is in a period of low temperature. The export of air-conditioning industry this year is no worse than last year. "The past year was the worst time, and it has gradually passed, and it has started to go up a bit." Xiao Youyuan said.
The air conditioner inventory of overseas importers has been cleared. For example, Europe bought a lot of air conditioners in 2011, of which Russia needed about 1 million units a year and bought 2 million units, so demand was weak in 2012. Now that stocks have basically been digested, it is expected that import demand will gradually increase in 2013.
Gree’s exports and exports are expected to increase by 20% year-on-year this year. Xiao Youyuan said that last year, all countries’ markets raised the environmental protection threshold for air-conditioning access, and the requirements for energy efficiency and environmental protection refrigerants were more stringent. The increase in cost caused air-conditioning prices to rise.
Galanz also maintained growth under the severe export situation. Liu Guizhong said that the European market has been weak this year and Christmas orders have not been hot last year. However, “the east side is not bright on the west†and North America, Latin America and South America are in a good situation. “Our export volume in the Americas has increased by 30% year-on-year.†Galanz’s total exports this year will increase by 7% to 8% year-on-year.
Chigo Air Conditioning also achieved a regional breakthrough in the cold wave of exports. In the first half of this year, air-conditioning exports in Asia (outside China) and Africa increased by 30.4% and 284.6%, respectively.
Second, relying on independent brands to master destined independent brands has become a powerful tool for contrarian growth. Xiao Youyuan said that self-owned brands are the basic guarantee for the market. Therefore, the worse the situation, Gree needs to urge overseas agents to become independent brands. Currently, about half of Gree uses its own brand for export air-conditioners. Next year, Gree will continue to increase investment and support for its own brands, design products specifically targeted at a certain market, and set up additional joint venture sales companies overseas.
Galanz is walking on both legs of its products and channels to build its own brand support system for export. Liu Guizhong stated that Galanz has adjusted its product structure this year and its product distribution has been “dumb-bell shapedâ€. Low-end products reflect cost advantages. High-end products reflect technological advantages. The number of medium-to-high end products this year has increased by 50% year-on-year.
In addition, overseas independent brands must first seize the strategic height of the United States. In the past, Galanz’s brand in the United States was “5+1†and five leased brands plus “Galanzâ€. Liu Guizhong said that from the second half of this year, from the original highlight of the five rental brands, turned into a prominent Galanz brand, and signed a cooperation agreement with Wal-Mart and other supermarkets.
Liu Guizhong said that there are three difficulties in establishing independent brands overseas. One is to establish an after-sales service system, the other is to improve the logistics system, and the third is the level of internationalized management and control. For example, to hire local people in the United States to directly connect with Wal-Mart's sales executives. "We are investing more, and the management model is also changing step by step."
Increasing the export intensity of self-owned brands has become a common measure for many mainstream home appliance companies to survive the "winter" of foreign trade. Gree hopes that its own-brand exports will grow by more than 50% year-on-year next year. Galanz’s Vice President Liu Guizhong, who is responsible for export business, also disclosed to the newspaper that in the next two years, the proportion of Galanz’s own brands in its microwave oven exports will increase from the current level of nearly 10% to 30%.
First, the "worst time" has gradually passed. "The export situation this year has not been imagined well." Xiao Youyuan said that the European debt crisis has caused the European market to be very poor. It is expected that the European market will be one to two years faster, and it will take only two to three years to gradually recover.
Indonesia and other resource-exporting Southeast Asian countries, due to China's poor economy and reduced demand for resources this year, the copper and coal that they sell to China are also declining, so the economic downturn has adversely affected the import of Chinese home appliances. The US and South American markets are tepid and have no ups and downs. The U.S. economic situation has improved slightly, but there has been no major increase in demand. However, the U.S.'s push for manufacturing returns has a greater impact on China. Inflation in Argentina and Brazil is serious, making the amount of imports smaller.
Xiao Youyuan said that the export situation is in a period of low temperature. The export of air-conditioning industry this year is no worse than last year. "The past year was the worst time, and it has gradually passed, and it has started to go up a bit." Xiao Youyuan said.
The air conditioner inventory of overseas importers has been cleared. For example, Europe bought a lot of air conditioners in 2011, of which Russia needed about 1 million units a year and bought 2 million units, so demand was weak in 2012. Now that stocks have basically been digested, it is expected that import demand will gradually increase in 2013.
Gree’s exports and exports are expected to increase by 20% year-on-year this year. Xiao Youyuan said that last year, all countries’ markets raised the environmental protection threshold for air-conditioning access, and the requirements for energy efficiency and environmental protection refrigerants were more stringent. The increase in cost caused air-conditioning prices to rise.
Galanz also maintained growth under the severe export situation. Liu Guizhong said that the European market has been weak this year and Christmas orders have not been hot last year. However, “the east side is not bright on the west†and North America, Latin America and South America are in a good situation. “Our export volume in the Americas has increased by 30% year-on-year.†Galanz’s total exports this year will increase by 7% to 8% year-on-year.
Chigo Air Conditioning also achieved a regional breakthrough in the cold wave of exports. In the first half of this year, air-conditioning exports in Asia (outside China) and Africa increased by 30.4% and 284.6%, respectively.
Second, relying on independent brands to master destined independent brands has become a powerful tool for contrarian growth. Xiao Youyuan said that self-owned brands are the basic guarantee for the market. Therefore, the worse the situation, Gree needs to urge overseas agents to become independent brands. Currently, about half of Gree uses its own brand for export air-conditioners. Next year, Gree will continue to increase investment and support for its own brands, design products specifically targeted at a certain market, and set up additional joint venture sales companies overseas.
Galanz is walking on both legs of its products and channels to build its own brand support system for export. Liu Guizhong stated that Galanz has adjusted its product structure this year and its product distribution has been “dumb-bell shapedâ€. Low-end products reflect cost advantages. High-end products reflect technological advantages. The number of medium-to-high end products this year has increased by 50% year-on-year.
In addition, overseas independent brands must first seize the strategic height of the United States. In the past, Galanz’s brand in the United States was “5+1†and five leased brands plus “Galanzâ€. Liu Guizhong said that from the second half of this year, from the original highlight of the five rental brands, turned into a prominent Galanz brand, and signed a cooperation agreement with Wal-Mart and other supermarkets.
Liu Guizhong said that there are three difficulties in establishing independent brands overseas. One is to establish an after-sales service system, the other is to improve the logistics system, and the third is the level of internationalized management and control. For example, to hire local people in the United States to directly connect with Wal-Mart's sales executives. "We are investing more, and the management model is also changing step by step."
Ningbo Autrends International Trade Co.,Ltd. , https://www.ecigarettevapepods.com