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Shunde household electrical appliance: from single market to walking on two legs

Shunde enterprises are gradually changing in recent years, relying on the pattern of a single market, insist on walking on two legs domestic and international routes. On the one hand, Shunde issued in June, “Shunde District, construction to support the views of independent export brands”, Shunde will select appliances, fine chemicals, clothing, building materials, furniture and other pillar industries as the focus of the implementation of export brand strategy, to 2010, Shunde more than 15% of the region’s export business has its own export brands. Shunde own brand export strength will increase; on the other hand, starting in 2005, a large number of OEM business turning to the domestic market, particularly small household electrical appliance enterprises in particular.

Transformation Background: market supply and demand and profit-driven

Industry analysis, since 2004, steel, copper, iron and other raw material prices and energy prices continued, with the export tax rebate adjustment, business organizations, labor costs and the increased production and management costs are also influenced by such factors, already rely on low profit margin OEM business facing heavy cost pressures. Therefore, the quest for lower profits of these enterprises must look for another way to try the domestic market is one of the ways they transition.

Learned, Shunde many OEM OEM business process in the long-term accumulation of considerable financial resources and superb manufacturing capability, the OEM companies have tried to brand the way the domestic market. Groups such as the DF-Ketchen, after 10 years overseas in the campaign fought in China in 2003; Wibaux Electric last year launched a comprehensive brand strategy, laying points in the national network building.

Experts believe that China’s export pattern should be like this: after the first OEM brand, OEM brand Qi simultaneously, the brand catching up to enhance international competitiveness. At present, Shunde enterprises, especially household electrical appliance enterprises have accumulated a lot of OEM has been completed, and then after several years of OEM brands simultaneously, the own brand will be the trend in exports. Prior to offshore business to

OEM-based Hisense Kelon, Hisense and Kelon this year set up a joint venture overseas sales, increase exports of its own brand.

Transition direction: The form of increased exports of its own brand

Midea Annual Report 2006 pointed out: the pressure for RMB appreciation, the company will strengthen business cooperation between overseas distributors to strengthen its own brand in export.

Ago, Shunde enterprises mainly through OEM means international, in recent years, Shunde enterprises to change this pattern, first of all through joint ventures with international well-known way of transition. Midea and Toshiba, the world’s leading air conditioner manufacturer Carrier Corporation signed a “United States of Toshiba Carrier Air Conditioning cause of the General Agreement on Business Cooperation”, the two sides jointly set up the United States of Refrigeration Equipment Co., Ltd. and three other joint venture companies in the domestic, commercial air-conditioning R & D, manufacturing, sales and service areas expand deeper cooperation, and formed a global strategic alliance. America’s capital through the introduction of international quality, optimizing the air-conditioning to improve the capital structure of the United States to enhance its international competitiveness and the overall risk-resisting ability of large multinational companies to import foreign standardized management mode of operation, thereby accelerating the pace of internationalization of the firm, through docking with the international brand of foreign capital to enhance cooperation and strengthen the vitality of its own brand.

7 27 Kelon and Hisense Import & Export Co., Ltd., Hisense Electric and 18 individuals signed a “joint venture contract,” joint venture “Hisense International Marketing Limited” (the “Hisense International Marketing”), to expand overseas market. In the future, Kelon has also retained its OEM (OEM) the autonomy of the export business, but will own brand export business to “Hisense International Marketing” to be responsible. Kelon said it had based its overseas business to OEM, the OEM’s gross margin is very low, the joint venture will help Hisense Import and Export use of existing offshore channels, development of own brand export business.

OEM brand fought in domestic enterprises

2003 6 months, Guangdong famous export oriented small appliances Invisible Champion Dong Ling Ketchen Group strategic shift started, relying on the background of strong overseas commanded the troops home, and set up Foshan Shunde Dong Ling Electrical Appliance Sales Co., Ltd..

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