Chinese home appliance manufacturers show their ambition at IFA: to expand the European Market

 Chinese home appliance manufacturers show their ambition at IFA: to expand the European Market

Haier showcases its products on IFA.

Netease Technologies News September 9, according to foreign media reports, at the Berlin International Consumer Electronics Exhibition (IFA), which opened on Friday, Chinese home appliances manufacturers sought to set off waves, and Haier and other manufacturers aimed at the European market.

Haier showcased its washing machines and refrigerators at the exhibition, as well as products from the recently acquired brand of Candy Group. Candy Groups share of the European online washing machine market is about 70%. Yannick Fierling, Haiers European CEO, said Thursday that the acquisition of Candy Group was the most appropriate way to enhance Haiers image on the continent.

Chinese manufacturers are increasing their share of the European household appliances market while seeking further growth. To this end, they are increasing their investment in the European continent --- for example, Haier bought Candy Group, an Italian professional electrical appliance manufacturer, for 475 million euros ($524 million) in January. Philling said Haiers goal is to become the worlds most diverse manufacturer of products.

Haier hopes to replicate its success in air conditioning in the washing machine market. According to Euromonitor International, Chinas share of the European air-conditioning market surged by more than 5 percentage points to 9.5% in the five years to 2018, second only to 14.9% of Daijin, a Japanese-based company. Haier has seen similar growth in refrigerators and washing machines, where its market share in Europe has not yet exceeded 5%.

Last autumn, Qingdao Haier, a subsidiary of Haier, was listed on the Central European International Exchange (CEINEX) in Frankfurt. By acquiring Candy Group, a long-standing brand, the company has further enhanced its image in Europe.

Haier is not the only Chinese manufacturer focusing on Europe. The TV industry, which has traditionally been dominated by South Korean companies such as Samsung Electronics, is undergoing similar dramatic changes. In 2018, TCL and Hisense Groups share of the European television market rose to about 2% from less than 1% five years ago. This growth has narrowed the gap between them and the troubled mainstream Japanese companies such as Sony and Panasonic, which have 8% and 6.3% market share, respectively.

At the IFA exhibition, TCL showed off TV products with built-in artificial intelligence. According to a European executive of the company, TCL has developed strongly in the past year or two because of its high cost performance. It has expanded rapidly in Europe and even entered the markets of Britain, Greece and Poland.

Signs of weakness in Chinas domestic market are a factor that has prompted Chinese manufacturers to pay more attention to the European market. According to GFK, Chinas household appliances market accounts for nearly 30% of the global scale, and will decline by 3% in 2019.

The uncertain outlook for the U.S. market makes the European market even more important. Hans-Joachim Kamp, chairman of the German Federation of Communications and Electronics Industries (GFU), said tariffs imposed by the United States would only drive up the prices of Chinese goods in the United States market.

But in the European market, Chinese manufacturers have not yet fully established themselves. The TV industry is facing particularly intense cost competition, which may drag players into a war of attrition. As Germanys economy stalls, manufacturers may feel the need to focus on stimulating demand in areas such as Eastern Europe. (Lebanon)

Source: Responsible Editor of Netease Science and Technology Report: Wang Fengzhi_NT2541