Exports turn on red lights, air conditioning exports fell 7.2% in the first half of the year.-Shanghai Metals Market

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Exports turn on red lights, air conditioning exports fell 7.2% in the first half of the year.

Translation 04:25:45PM Aug 15, 2019 Source:China domestic power grid
The content below was translated by Tencent automatically for reference.

SMM News: coinciding with the global economic slowdown, currency depreciation in emerging economies, Sino-US trade war and other adverse factors, household air-conditioning exports fell in the first half of the year.

Customs data show that China exported 5.15 million air conditioners in June, an increase of 0.2 percent over the same period last year. From January to June, China exported a total of 37.31 million air conditioners, down 7.2 percent from the same period last year. In addition, according to the industry online, it will be difficult for China's household air-conditioning exports to change the downward trend for the whole year in 2019. Many people in the industry said that with the change of local market demand and the competition among export enterprises, the impact of the Sino-US trade war on the export business of China's air-conditioning industry in the cold year of 2020 will be further apparent.

How attractive is the business in overseas markets? If you look at the financial data of the major air-conditioning enterprises, you can understand one or two.

According to the financial data released by Midea, Qingdao Haier and Gree Electric Appliances, Midea achieved revenue of 261.8 billion yuan in 2018, of which revenue from overseas markets reached 110.408 billion yuan, accounting for 42.17% of the total revenue. Qingdao Haier is realizing 183.3 billion yuan in revenue, of which 76.677 billion yuan is from overseas markets, accounting for 41.79% of the total revenue. On the other hand, Gree Electric Appliance achieved revenue of 200 billion yuan for the whole year, and revenue from overseas markets was 22.27 billion yuan, accounting for 11.14 per cent of the total revenue.

From the above data can also be seen, in some areas of the domestic stock market competition saturated background, leading enterprises have begun to ask for profits from overseas markets. Now in the face of such a severe export situation, what to seize the cake of overseas markets, which is more important to air conditioning manufacturers than whether the air conditioning market is good or bad in 2019.

In the view of Hong Shibin, an observer of the home appliance industry, the core problem that must be solved if made in China wants to go to the world is the ability to innovate. From the point of view of the global market, the overseas R & D center, which can improve the level of R & D and the scope of innovation, innovate with products and models, and realize the connection between enterprises and users will be a new path for the development of air-conditioning enterprises.

The same and highly consistent practices of leading enterprises also illustrate this point. Gree Electric is considering speeding up the pace of building factories overseas and introducing more high value-added products. Haier is relying on Haier, Commander-in-Chief, Casati, GEAppliances and other multi-air conditioning brand clusters to link the global ecological resources to provide users with differentiated air solutions. In addition, TCL, ox, Zhigao, Hisense Kelong, Changhong and other brands have built their own factories overseas and optimized their product structure to cope with Sino-US trade frictions from the adjustment of export structure.

It can be seen that if air conditioning manufacturers want to occupy a place in the overseas market, they must ensure the quality of their products, combine with local cultural customs, and make an all-round layout of products, sales, and services, so as to truly localize the overseas market. Only in this way can we expect to achieve further development in the increasingly competitive overseas market.

Of course, to enter the overseas market, in addition to the need for high-quality products, but also to find out the characteristics of the market, understand the trend is also essential. In the current tense situation of trade war, it is a wise choice to choose to open up regions with more favorable prospects for large-scale development, such as Europe, Central and South America, South Asia, Southeast Asia and so on. China Merchants Securities Home Appliances team analysis shows that India, Indonesia's climate is relatively hot, there is a strong objective demand for refrigeration and air conditioning. India and China have a population close to each other, but the current market size is only about 1/9 of China's; Indonesia's population is 1/5 of China's, but the market size is only about 1/20 of China's. Thus it can be seen that with the further improvement of the level of economic development in Southeast Asia and the continuous release of air conditioning demand, Southeast Asia has great potential for development. Of course, at the same time, it should be noted that economic development and the improvement of living standards are not a matter of day and night, and the market with great potential needs enterprises to be ready for a long war.

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Exports turn on red lights, air conditioning exports fell 7.2% in the first half of the year.

Translation 04:25:45PM Aug 15, 2019 Source:China domestic power grid
The content below was translated by Tencent automatically for reference.

SMM News: coinciding with the global economic slowdown, currency depreciation in emerging economies, Sino-US trade war and other adverse factors, household air-conditioning exports fell in the first half of the year.

Customs data show that China exported 5.15 million air conditioners in June, an increase of 0.2 percent over the same period last year. From January to June, China exported a total of 37.31 million air conditioners, down 7.2 percent from the same period last year. In addition, according to the industry online, it will be difficult for China's household air-conditioning exports to change the downward trend for the whole year in 2019. Many people in the industry said that with the change of local market demand and the competition among export enterprises, the impact of the Sino-US trade war on the export business of China's air-conditioning industry in the cold year of 2020 will be further apparent.

How attractive is the business in overseas markets? If you look at the financial data of the major air-conditioning enterprises, you can understand one or two.

According to the financial data released by Midea, Qingdao Haier and Gree Electric Appliances, Midea achieved revenue of 261.8 billion yuan in 2018, of which revenue from overseas markets reached 110.408 billion yuan, accounting for 42.17% of the total revenue. Qingdao Haier is realizing 183.3 billion yuan in revenue, of which 76.677 billion yuan is from overseas markets, accounting for 41.79% of the total revenue. On the other hand, Gree Electric Appliance achieved revenue of 200 billion yuan for the whole year, and revenue from overseas markets was 22.27 billion yuan, accounting for 11.14 per cent of the total revenue.

From the above data can also be seen, in some areas of the domestic stock market competition saturated background, leading enterprises have begun to ask for profits from overseas markets. Now in the face of such a severe export situation, what to seize the cake of overseas markets, which is more important to air conditioning manufacturers than whether the air conditioning market is good or bad in 2019.

In the view of Hong Shibin, an observer of the home appliance industry, the core problem that must be solved if made in China wants to go to the world is the ability to innovate. From the point of view of the global market, the overseas R & D center, which can improve the level of R & D and the scope of innovation, innovate with products and models, and realize the connection between enterprises and users will be a new path for the development of air-conditioning enterprises.

The same and highly consistent practices of leading enterprises also illustrate this point. Gree Electric is considering speeding up the pace of building factories overseas and introducing more high value-added products. Haier is relying on Haier, Commander-in-Chief, Casati, GEAppliances and other multi-air conditioning brand clusters to link the global ecological resources to provide users with differentiated air solutions. In addition, TCL, ox, Zhigao, Hisense Kelong, Changhong and other brands have built their own factories overseas and optimized their product structure to cope with Sino-US trade frictions from the adjustment of export structure.

It can be seen that if air conditioning manufacturers want to occupy a place in the overseas market, they must ensure the quality of their products, combine with local cultural customs, and make an all-round layout of products, sales, and services, so as to truly localize the overseas market. Only in this way can we expect to achieve further development in the increasingly competitive overseas market.

Of course, to enter the overseas market, in addition to the need for high-quality products, but also to find out the characteristics of the market, understand the trend is also essential. In the current tense situation of trade war, it is a wise choice to choose to open up regions with more favorable prospects for large-scale development, such as Europe, Central and South America, South Asia, Southeast Asia and so on. China Merchants Securities Home Appliances team analysis shows that India, Indonesia's climate is relatively hot, there is a strong objective demand for refrigeration and air conditioning. India and China have a population close to each other, but the current market size is only about 1/9 of China's; Indonesia's population is 1/5 of China's, but the market size is only about 1/20 of China's. Thus it can be seen that with the further improvement of the level of economic development in Southeast Asia and the continuous release of air conditioning demand, Southeast Asia has great potential for development. Of course, at the same time, it should be noted that economic development and the improvement of living standards are not a matter of day and night, and the market with great potential needs enterprises to be ready for a long war.

"Click to enter the registration page

Scan QR code and apply to join SMM metal exchange group, please indicate company + name + main business