China’s Appliance exports put on strong 2023 show

January 3, 2024

ANN/CHINA DAILY – China’s exports of home appliances were on the rise in 2023, as major brands intensify their efforts to penetrate more deeply into emerging overseas markets, such as Southeast Asia, the Middle East and Africa, experts said.

The General Administration of Customs said China’s exports of home appliances rose 13.4 per cent year-on-year to USD7.24 billion in November, fuelled by the holiday shopping season and a low comparison base the previous year.

It was also the fourth consecutive monthly increase.

In the January-November period, the country’s home appliance exports reached USD80.47 billion, up 2.8 per cent year-on-year. Exports of Chinese-made home appliance products are expected to see steady growth in 2024 along with the drop in raw material prices and sea freight costs, said Guosen Securities.

Global market research company GfK said Chinese home appliance exports to the 22 members of the League of Arab States, Latin America and Africa rose by 15.41 per cent, 18.36 per cent and 21.84 per cent year-on-year, respectively, during the January-October period.

Secretary-general of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products’ home appliances branch Zhou Nan said the growth of China’s home appliance exports to Europe and North America slowed in 2023 due to high inflation and trade barriers, which prompted these manufacturers to seek growth points and expand their footprint in emerging markets.

“The Middle East and Africa serve as important markets participating in the Belt and Road Initiative, presenting huge growth potential for enterprises to build self-owned brands and develop cross-border e-commerce,” Zhou said.

In recent years, some Middle Eastern countries, such as the United Arab Emirates and Saudi Arabia, have accelerated economic transformation, expecting more Chinese companies to invest and start businesses there, which also brings about new opportunities for Chinese brands, he added.

Chinese home appliance maker Midea Group announced in November the launch of its third manufacturing base in Egypt. With a total investment of CNY830 million (USD116.9 million), the new factories, where refrigerators and washing machines will be produced, are expected to begin operating in the second half of 2025.

Vice-president of Midea Group and president of Midea’s smart home business group Wang Jianguo said once it begins operations, the new project will not only meet local demand in Egypt, but also satisfy consumers’ soaring purchasing demand for home appliances in Africa, the Middle East and Europe.

Guangdong Xinbao Electrical Appliances Holdings Co Ltd set up its first overseas factory in Indonesia last year, and plans to tap more opportunities from countries and regions involved in the Belt and Road Initiative.

Chinese consumer electronics company TCL Technology Group Corp is speeding up steps to strengthen its capacity in global operations, with a key focus on three core business segments covering intelligent terminals, semiconductor displays and new energy photovoltaics.

The company’s intelligent terminals unit has established production bases in Vietnam, India, Poland, Mexico and Brazil, which will further improve localised production and operations, said founder and chairman of TCL Li Dongsheng.