The major home appliance market is one of leading indicators of a country’s consumption level and quality of life. Its growth potential remains significant globally, especially in emerging economies. While these countries currently have relatively lower economic levels, the steady improvement in their consumers’ purchasing power signifies that once they reach China’s consumption level, unprecedented opportunities will be brought. In order to tap into this potential, continuous product upgrades and innovation are crucial so as to meet the increasingly diverse and personalized consumer demands.
However, home appliance companies are facing various challenges as they venture overseas. The primary challenge is the uncertainty in the international trade environment, such as frequent trade frictions and high tariffs, which directly increase operating costs and barriers to entry. Besides, different countries and regions have varied market environments, consumer preferences, policies, regulations, and even cultural backgrounds, all of which require companies to conduct in-depth market research and adopt differentiated market strategies when formulating their overseas expansion strategies.
Expanding production capacity overseas has become an important trend in the home appliance industry. This not only helps companies navigate trade barriers and reduce production costs but also allows them to be closer to the target markets and swiftly respond to consumer demands. Particularly in the U.S., major home appliances are popular due to the larger residential spaces; whereas in Japan, with limited living spaces, there is a greater preference for highly functional and compact-designed small appliances. The diversity in market demands necessitates companies to make corresponding adjustments in product design and production to cater to specific needs of different markets.
For home appliance companies aspiring to enter developed markets, major international events like FIFA World Cup offer platforms for brand marketing. These events garner high global attention, rapidly boosting brand exposure and influence.
When expanding into the Southeast Asian market, Chinese home appliance companies can draw lessons from the development experience of domestic third and fourth-tier cities. These regions share many similarities with the Southeast Asian market in consumer habits, price sensitivity, product preferences, providing valuable insights for companies’ market layouts. Through precise positioning and localization strategies, companies can penetrate the Southeast Asian market and achieve rapid growth.
By product category, refrigerators and freezers, as representatives of traditional major home appliances, have relatively large bases in export markets. This sector is expected to see growth slowdown in the future but still keep a robust uptrend, with an estimated growth rate of 13% in 2024. The U.S., the top export destination for Chinese refrigerators and freezers, has slowed its demand growth due to trade frictions and tariff policies, but the demand for air conditioners in Latin America continues to grow, providing new growth opportunities for home appliance companies.
It is particularly noteworthy that the growth in China’s exports to Brazil and Belgium has been significant. The rapid development of the Brazilian economy and the full-process closed-loop RMB-based transactions between China and Brazil have laid a solid foundation for trade cooperation between the two countries. Belgium, as an important transit and distribution center in Europe, plays a crucial role in Chinese home appliance exports, offering convenient pathways for Chinese products to enter the European market.
In conclusion, global expansion is a comprehensive endeavor that requires companies to strategize in various aspects such as product innovation, market research, capacity deployment, and brand marketing. Faced with the challenges and opportunities in the international market, Chinese home appliance companies should maintain strategic agility and adaptability, drive development through innovation, win the market with quality, and jointly promote the rise of Chinese home appliance brands on the global stage.
