Domestic Air-conditioning Giants Speed Up The Internationalization

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With the concentration of the domestic market continuing to increase, the two air-conditioning giants Gree and Midea are increasing the pace of going out. The two companies both invariably identified target markets as the Americas. However, the overseas distribution strategy of two companies is varied.

Market participants believe that as China's most competitive sub-sector of the home appliance industry, driven by the major air conditioning companies, the pace of output of air-conditioning brands are greatly accelerated, accounting for nearly 30% of overseas revenue. Air-conditioning industry is expected to follow the development model of the then South Korean international brand to further expand the market.

According to the semi-annual report of the two companies in 2011, proportion of the export earnings in the company's overall revenue is increasing. While under the context that China's air conditioning industry monopolizes 80% of global production capacity, the output of the brand in overseas markets in due course is the development trend of the air-conditioning industry.

Gree's operating income in the first half is 40.06 billion yuan, an increase of 60%. The net profit is 2.208 billion yuan, an increase of 40.37%. 9.29 billion yuan comes from the revenue of the overseas markets, an increase of 61%, accounting for 24 % of the overall revenue.

Recently, the Gree U.S. subsidiary was established in California, the United States. The U.S. branch of Gree marks that Gree has entered the U.S. market. It is also an important step for Gree's global expansion.

Of the sales of 30 million units Gree air-conditioning, 20% are exported to the overseas market. For example, in Brazil, Pakistan, Vietnam and other countries, Gree's development strategy is first attract the local market and consumer groups, and then set up production bases. For Gree, the internationalization is not a blind acquisition or the simple output of capital, the more important is the output of technology, management and brand of China's national business.

Insiders pointed out that in the overseas income of the domestic air conditioning business, the OEM has accounted for a large proportion. But with the growth of Gree, Midea and other companies, its international strategy will be an important part of the output of its own brand. Through own brand to seize the local market has also been a dream of several air-conditioning giants.

Midea's first half operating income is 62 billion yuan, an increase of 58%. The overseas revenue is 16.8 billion yuan, an increase of 53%, accounting for 27% of the total revenue.


About the Author:
I am Amanda Xia from frbiz.com, and my work is to promote a free online trade platform. http://www.frbiz.com contains a great deal of information about air conditioning cover , sanyo air conditioning , media player cd , and more.



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