TMTPOST--As Chinese home appliance brands gain recognition worldwide, their familiar logos are becoming a common sight in retail stores across the globe.

Even for those with limited English proficiency, these recognizable logos guide customers to the products they seek—ranging from digital gadgets like smartphones and headphones to household appliances such as air fryers, refrigerators, and televisions.

This phenomenon was highlighted recently in Berlin, Germany, where the Titanium Media APP team observed the presence of various Chinese brands in consumer electronics retail stores ahead of the IFA 2024 exhibition.

This trend is not confined to Germany; it is unfolding in numerous regions worldwide. Chinese brands are accelerating their overseas expansion, rapidly penetrating online and offline sales channels in international markets. The home appliance industry is a case in point, with significant growth in exports.

According to the latest data from the General Administration of Customs, China exported approximately 41.88 million home appliances in August 2024, marking an 18.4% year-on-year increase. From January to August, the cumulative export volume reached 295.29 million units, representing a 23.6% year-on-year growth. This marks 18 consecutive months of positive year-on-year growth in Chinese appliance exports.

The success of Chinese home appliance brands in international markets is not coincidental. Large appliances like refrigerators, televisions, and washing machines have undergone a comprehensive evolution—from initial technology imports and assembly production to the development of independent brands and in-house technology capabilities. This process culminated in the establishment of an integrated "research-production-sales" industrial chain and the enhancement of global brand recognition.

While early production primarily aimed to meet domestic demand, it wasn't until the emergence of various local television brands, such as Hisense and Konka in 1984, that Chinese televisions gained recognition abroad.

Initially, exports were primarily through OEM (Original Equipment Manufacturer) agreements for international brands. However, as technology improved and the industry matured, Chinese television manufacturers began to establish their own brands and expand into global markets.

Between 2007 and 2013, during the global financial crisis and European debt crisis, Chinese TV manufacturers capitalized on domestic demand and emerging markets, steadily increasing their global market share. By 2023, Chinese television exports accounted for 50.6% of the global shipment volume.

Other appliance categories, such as refrigerators and washing machines, have experienced similar transformations. For instance, annual refrigerator production in China grew from 400,000 units in 1985 to 12 million by 2000. Major brands like Haier, Midea, and Rongsheng began to penetrate international markets in the 21st century, accelerating the global presence of "Made in China" products.

Haier established its industrial park in South Carolina, USA, covering 700 acres and producing 500,000 appliances annually since its opening in 2000, becoming one of the first Chinese home appliance manufacturers to set up production overseas. Similarly, Hisense acquired a factory in Johannesburg, South Africa, in 2015 to establish a modern television production line.

TCL has also built production bases in Vietnam and Poland to lower production costs and logistics pressures, improving service to local markets. Industry insiders note that establishing overseas production bases enhances supply chain efficiency and allows brands to respond quickly to local market demands, fostering closer connections with consumers.

Moreover, to integrate into local markets and boost brand recognition, Chinese home appliance brands have been actively acquiring local companies. Since 2012, Haier has acquired the white goods division of Sanyo Electric, GE Appliances, New Zealand’s Fisher & Paykel, and Italy’s Candy. Similarly, TCL’s acquisition of France's Thomson television division in 2015 expanded its European presence.

In recent years, a focus on "main brand exports" has emerged, with companies striving to elevate their primary brands’ visibility on the global stage. This can be seen from the sponsorships of major international events such as the Olympics, World Cup, and UEFA European Championship.

Gree's exports used to rely on OEMs, but this has fundamentally changed in recent years. Now, Gree primarily exports its own products, and our brand’s market share in international markets is increasing, said Gree Electric Chairman Dong Mingzhu.

With years of global expansion efforts, Chinese home appliance brands are witnessing an increase in global influence, reflected in record-breaking market shares and export volumes. In 2022, Haier held a 19.4% share of the global refrigerator market, making it the leader. Hisense's television exports exceeded 21 million units, positioning it as the second-largest TV brand globally. Gree's share of the air conditioning market reached 22%, especially popular in hot regions such as the Middle East and Southeast Asia.

As of 2024, Chinese home appliance exports continue to rise. In the first eight months of this year, a number of appliance categories saw significant growth. The air conditioners saw a cumulative export of 46.85 million units (up 25.3%), and the figure stands at 54.04 million units (up 23.4%) for refrigerators, 21.7 million units (up 18.8%) for washing machines, and 7.04 million units (up 8.4%) for televisions.

The overseas expansion of major appliances has gained stronger momentum. With a complete range of products, high market share brands, ample production capacity, and cutting-edge manufacturing and R&D capabilities, large appliances have become one of the “new business cards” for Chinese enterprises going overseas.

While major appliances focus on steady growth across various dimensions, the export success of Chinese small appliance brands is attributed to a strategy built around rapid user demand response and competitive pricing. Products like robotic vacuum cleaners, lawn mowers, hair dryers, and various kitchen gadgets are examples of this approach.

For instance, robotic vacuum cleaners were initially imported from the U.S. after emerging in the late 1990s. Chinese companies began to enter the market around 2005 through OEM agreements. The sustained popularity of these devices in Europe and the U.S. attracted more brands to the sector, leading to the rise of companies like Ecovacs.

The U.S. brands dominated the robotic vacuum market during the early stage, but the introduction of laser navigation technology (LIDAR) allowed Chinese brands to catch up. This technological advancement facilitated the establishment of a robust supply chain, with companies like Sutek Technology becoming a leading supplier of high-end laser radar products for robotic applications.

As of 2022, Chinese robotic vacuum brands had captured nearly 50% of the overseas market, with Southeast Asia and Europe emerging as primary entry points. Recent data indicates that Chinese robotic vacuum brands hold a 68% market share in Southeast Asia and 55% in Europe.

Moreover, Chinese brands have introduced localized products addressing specific consumer needs, such as window cleaning robots and lawn mowers, which cater to high labor costs in Europe and the widespread prevalence of independent homes and gardens.

"Chinese brands are now associated with high quality. I would even say that 'Made in China' now represents 'Chinese quality,'" said Alexander Sechsel, Managing Director of MediaMarkt's Berlin Wedding store, adding "Of the 47,000 products available in the stores I manage, more than half are 'Made in China.' We sell a wide range of categories, from smartphones and air purifiers to air fryers and electric scooters."

In the large appliance sector, brands like Bosch, Siemens, and Philips dominate, while in small appliances, names such as Dyson, Braun, and Stadler Form are strong contenders. Although Chinese brands have gained some market recognition through competitive pricing and the success of standout products, their brand awareness still lags behind these long-established local brands.

Building brand recognition is a key reason why Chinese home appliance brands frequently appear at major international events like the IFA and CES. Additionally, challenges such as low brand recognition, weak brand loyalty leading to limited pricing power, and insufficient localization—due to local teams not fully aligning with European market culture and consumer habits—are all issues that Chinese brands need to overcome as their overseas expansion strategies deepen and their local operations grow.