Appliance exports put on strong 2023 show

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 percent year-on-year to $7.24 billion in November, fueled by the Christmas 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 $80.47 billion, up 2.8 percent 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 percent, 18.36 percent and 21.84 percent year-on-year, respectively, during the January-October period.

Zhou Nan, secretary-general of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products' home appliances branch, 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 830 million yuan ($116.9 million), the new factories, where refrigerators and washing machines will be produced, are expected to begin operating in the second half of 2025.

Wang Jianguo, vice-president of Midea Group and president of Midea's smart home business group, 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 localized production and operations, said Li Dongsheng, founder and chairman of TCL. The company has also established photovoltaic cell and module factories in Malaysia, the Philippines and Mexico through joint ventures.

ChinaIOL.com, a research institute focusing on data monitoring in the home appliances market, said Chinese exports of air conditioners stood at 58.08 million units from January to October, an increase of 5.1 percent year-on-year.

Moreover, exports of refrigerators rose 22.2 percent year-on-year to 36.32 million units and washing machines reached 31.79 million units, up 36 percent, it added.

Establishing production bases in overseas markets not only brings China's advanced manufacturing, research and development as well as management capabilities to overseas markets, but creates job opportunities for locals and enhances the competitiveness of Chinese enterprises in the global market, said Liang Zhenpeng, an independent consumer electronics analyst.