China's white goods export growth curve is "going down"

Abstract: Under the pressure of both inside and outside, many enterprises through overseas e-commerce, cross-border acquisitions and other means to speed up the global resource layout, push the independent brand, to seek breakthroughs. The sluggish domestic demand caused by the policy withdrawal has not yet recovered, and the rapid growth period of China's home appliance export has

Under pressure, many enterprises through overseas e-commerce, cross-border acquisitions and other means to speed up the global resource distribution, to push the independent brand, to seek breakthroughs.

The sluggish domestic demand caused by the policy withdrawal has not yet recovered, and the rapid growth period of China's home appliance exports has passed.

In the first quarter of this year, despite a slight correction of the renminbi exchange rate, the increase in labor costs and lower economic growth in emerging countries has led to a pullback in Chinese household appliances exports.

"Last year was expected to be optimistic this year, not expecting growth in the first quarter of 2014 years. "China electromechanical import and Export Chamber of Commerce Home Appliances branch deputy secretary General Zhou told the first financial daily reporter."

Under pressure, many enterprises through overseas e-commerce, cross-border acquisitions and other means to speed up the global resource distribution, to push the independent brand, to seek breakthroughs.

Enter the "bottleneck"

Zhou told the "First financial daily" reporter, China's white household appliances export growth curve is "down."

Zhou said that the 2012 growth rate of 6.7%, 2013 growth rate of 8.3%, and "the first breakthrough 60 billion dollars." In the first quarter of this year, China's white goods exports 14.79 billion U.S. dollars, an increase of 4%, compared with last year's growth is half lower.

From the export market, Western Europe and North America have recovered from the financial crisis, but it is difficult to have explosive growth, and emerging markets are not optimistic, inventory levels

From the product view, air conditioners, refrigerators, washing machines and other "big white" exports are difficult to grow, small household electrical appliances export "space is larger", but also appeared "differentiation"--kitchen small household electrical appliances in the first quarter of the year-on-year decline, induction cooker down 43%, rice cooker down 20%; iron, hair dryer, razor and other nursing small household appliances export volume is increasing.

The renminbi depreciated by about 3% per cent against the dollar in the first quarter. Zhou, who had just joined the 2014 Canton Fair, said the devaluation of the renminbi made exporters "more aggressive in signing, but not necessarily affordable", since export contracts were locked into the exchange rate.

Domestic labor costs continue to rise, the spring Festival after the "recruitment difficult", skilled workers of the monthly salary of more than 2000 yuan last year, rose to the beginning of this year about 3000 yuan. Japan, South Korea's home appliances enterprises to increase the strength of the establishment of factories in Southeast Asia, but Zhou that China's domestic market, the industrial chain perfect, Southeast Asian countries in these two points than China, so "little impact."

"Exports are expected to grow at a lower rate than last year in the first half of this year, at around 5%. Zhou estimates.

Black home appliances in the first quarter of the export also turned downward, but the color TV export "One alone show." China electromechanical import and Export Chamber of Commerce and Audio-visual branch secretary-General Lu Yong to our correspondent, including color TV, LCD panels, DVDs, digital cameras, including audio-visual products exports in the first quarter of this year, "the volume of negative growth", exports 26.78 billion U.S. dollars, the year-on-year decline of 5.6%.

Lu Yong said, Europe, North America, Japan and other developed markets growth 8%~10%, Russia, the Middle East, Africa, Latin America market also maintained growth, but exports to Southeast Asia, including Hong Kong, China, Taiwan, South Korea, Thailand, Singapore and other countries.

"This January-March, the color TV exports 2.81 billion U.S. dollars, an increase of 29.4% per cent, export volume of 15.679 million units, the year-on-year growth of 43.4%." "Lu Yong believes that this year's soccer" World Cup "to stimulate demand, overseas dealers to prepare before the Spring Festival, the European Union market in the recovery; China's six major color TV brand factory also increased overseas market expansion, South Korea's Samsung, LG factory in China also increased shipments to third countries.

LCD panel exports, but another scene. Lu Yong said that in January-March this year, the LCD panel exports 7.02 billion U.S. dollars, down 30.1% year-on-year. "The panel demand is not flourishing, China's development capacity in high-end panels also need to improve."

China's exports of audiovisual products have been hovering around 125 billion dollars for years. "High-speed growth has passed," Lu Yong, said, breaking the "bottleneck", "relying on the quantity is not good, to rely on product value-added, according to overseas market demand development products."

Looking for a new "out of Haikou"

The road has become increasingly difficult to earn by making modest "foundry" profits from cheap labor and mass production. How to find a new "out of Haikou"?

Overseas E-commerce is one of the breakthroughs. Bellede Electrical Appliance General Manager Liang Yongjian told our correspondent, the export of its hot stamping machine in the first quarter year-on-year growth of nearly 20%, mainly thanks to the increase in e-commerce income overseas, is now in Singapore, Hong Kong, China, Taiwan, Japan, the United States, Britain, Germany, Australia, Vietnam, Myanmar and Russia to carry out the business.

Liang Yongjian just went to Singapore last week, where Bellede set up a "drainage" team from Facebook to support the development of e-commerce overseas. "Last year, the distribution of goods, sales network, is expected to increase exports this year close to 50%."

"It's the key to have a brand in overseas," Liang Yongjian said, as Japan and South Korean companies that were decades ago now turn to Chinese companies on the world stage, "We're not just looking for sales, but also for value." ”

TV giant Skyworth is also increasing the strength of its own brand exports. Skyworth Overseas Business Director Sun Weizhong to our correspondent disclosed that Skyworth in India, Indonesia, the Philippines, Thailand, Vietnam push "Skyworth" brand. "We've been doing some big projects recently, starting in 7 ~ August. In the first quarter of this year, exports grew 20% and are expected to reach 40%~50% throughout the year.

Sun Weizhong admits that "the US has withdrawn from QE and the emerging world currency is under pressure to depreciate", with the currencies of India, Indonesia and the Philippines depreciated last year. Skyworth hit its own brand, and went to the high-end to prevent the loss of local currency depreciation risk.

Playing the independent brand in the international market is a hard road. Gree overseas business executives believe that "in the long run, Chinese enterprises must enhance the global capacity to integrate resources", including manufacturing, development, finance, channels, supply chain resources to adapt to the rapidly changing environment of international trade.

Cross-border acquisitions are an important means of integrating global resources. In recent years, Haier in overseas mergers and acquisitions on a succession of "shot", the first acquisition of Sanyo in Southeast Asia and Japan's white electricity assets, and the acquisition of New Zealand's Netherfield Parker. Zhou that "Haier is not only looking at overseas factories and channels, but also the development of high-end products resources."

Changhong's Chinese-Italian compression, the year before the acquisition of a Spanish refrigerator compressor enterprises. In April this year, Changhong also invested 6.724 million of billions of dollars in building a refrigerator project in Pakistan to achieve localized manufacturing and sales of refrigerators overseas.

In March this year, TCL bought Sanyo's color TV factory and related assets in Mexico at HK $120 million. Bing, director of research at Display Search China, said Tcl's move could cross tariff barriers and "help regain lost ground". Ten years ago, TCL acquisition of France Thomson, to borrow Thomson, RCA brand into the developed markets in Europe and America, but its European and American color TV business has been losing, in a shrinking state. Over the past few years, TCL Color TV export business mainly in emerging markets. The acquisition of Sanyo Mexican factory, can be in Europe and the United States market again, "short-term for Sanyo, long-term will be TCL brand."

"Chinese enterprises should seize the opportunity to change the global appliance brand pattern after the financial crisis." "Zhou revealed that some high-end white goods brands in Europe and the United States, by the financial crisis, is" Diana ", Chinese companies are sourcing overseas brands.

Lu Yong warned that "the European and American market brand, overseas acquisition is a shortcut." However, prior to the TCL acquisition of Thomson, Changhong acquisition of Slovak factories have encountered problems such as the resettlement of European workers, so overseas acquisitions also have to consider their own digestion capacity.