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China home appliances crazy to expand capacity

Posted in Appliances | October 25th, 2011

Article by Yaly

One side is expanding capacity, one side is alarming and domestic market in overseas market ropey, electric industry is coming home countries to “sharp peak moment”.

Crazy to expand capacity

From TV to refrigerator, from air conditioning to washing machine, China is now the appliance in preparation for simultaneous capacity.

The past for a period of time, more than FengYongErShang achieve high generation panel production line the events to industry was impressed, and this scene is now in the refrigerator, air conditioner, washing machine industry repeatedly shown.

In March 2011, haier releases announcement to say TouJian in liaoning shenyang, 2 million refrigerator production in guangdong foshan investment project, the construction of the 2 million annual saving energy and environmental protection freezers project. Last year, haier refrigerator with annual investment in chongqing over 200 million to refrigerator production base. On March 3, haier 6.9 billion yuan, announced that the investment of hefei haier capacity of 300 million energy conservation and environmental protection refrigerator technical improvement project are put into operation. At present, haier refrigerator hefei production base of annual production ability has reached 600 million, becoming the world’s largest refrigerator monomer production base.

Beautiful refrigerators also strides moved at a pace of capacity expansions. According to the beautiful refrigeration appliance group vice President WangJinLiang introduces, at present, the beauty of hefei, anhui province of guangdong in nansha and hubei, large capacity expansions of jingzhou expected future five years production, beauty will reach 2500 refrigerator sets. In addition, beauty in north China is brewing in the north and northeast market, build a new ice wash production base.

In addition, in order to realize the 1,000 million by 2013, beauty rhombohedrons financing production target, successively 1.2 billion yuan to build energy-saving and environmental protection refrigerator project, freezers rectisol projects and luxurious refrigerator production programs, etc. All three projects of postpartum, beauty rhombohedrons will add three of 2 million to open several and luxurious, refrigerators, 120 million freezers and 60 million environmental protection and energy saving refrigerator production capacity.

Washing machine a new round of capacity investment boom also crazy.

The 2011 April 2, little swan washing machine rectisol ground-broken projects of jingzhou base after the completion of the three years, and is expected to reach 600 million washing machine production. As we have learned, current little swan in wuxi city, jiangsu province, anhui hefei and hubei jingzhou washing machine production base, with three of the 2010 has 16 million washing machine capacity.

March 25 2011, haier spend billions in sanshui construction haier – foshan (sanshui) market innovation park, which will form platen washing machine an annual production capacity of 300 million. 2010, Siemens is located in nanjing, home appliance industrial park of washing machine factory, installed the modification, and the second line in the November open two production lines operation. In addition, sources said T C L group to invest in the construction of recent in wuhan washing machine production base.

KongDiaoYe productivity war continues tonight, one more TouJian project in succession mount. Beautiful and gree respectively in handan and wuhan new production base, the extension of the second phase of the project has been put into production of nanchang base, chigo air conditioning massive investments listed after TouJian chuzhou, glanze base…

According to understand, 2011 gree, midea, haier, chigo, oakes curled, hisense kelon and glanze this seven domestic market main brand air conditioner has exceeded YiYiTai, can output over the next five years, and the number is likely to be close to 200 million. By the end of 2010 and refrigerator “, the overall annual production capacity has more than YiYiTai, coupled with the latest and future new capacity, refrigerator excess capacity is affirmation, this round of modification great risk.” The refrigerator for the current expansion agitation, Chinese household electric appliances association mii minister HuXiaoGong said.

The domestic market: alarming

Although some enterprises said this round of capacity expansion is out of the industrial structure adjustment, but some realistic reason capacity and scale compared the size of the market, we’ll consider to future home appliance with old change new countryside, factors such as policy, not suspend worry about future home appliances will appear again, overcapacity crisis.

On May 11th, for the nation to expose more fooled, the ministry of finance for the ministry of commerce, the phenomenon of jointly issued by the ministry of industry and information to the countryside policy execution supervision and home appliance to default processing method “, further strengthening regulatory responsibilities and appliance countryside violations processing, promote home appliance implemented smoothly. Countryside work

Earlier, the ministry of commerce on May 9, released in April 2011 countryside of home appliance sales data, the total sales of home appliance in April 328.8 sets, and countryside product 31% year-on-year drop 87.2 billion yuan of sales value, year-on-year drop 12%.

In march of this year reached the appliance countryside peak, historical data in March 2011 the home appliance product total sales of countryside 1471.5 million, an increase of 135.36%; Achieve sales 344.8 billion yuan, an increase of 178.06 March a month, while the equivalent of home appliance sales income countryside in three years the implementation of total shipments 1 April 10, but the number of shipments march had only 1/4 strong.

Commerce ministry statement is, this is the government strengthen supervision appeared after the adjustment and not consumption demand atrophy leads to. A source said, “to prevent sales outlets cheat fill, take card sales and scalping violations identification card, etc, and this year the Commerce Department launched the new home appliance identification card, the old logo countryside in card products before March 15 to stop selling, this, to a certain extent on April sales parts made in advance to march, data is embodied in the surge in sales in March.”

However, in the industry, however, think, this may be one of the industry policy sales growth from the beginning of forming negative effect, first is June 1 energy-saving huimin financial subsidies will stop, the air conditioning industry has a great influence, and sales proportion of home appliance of shandong province countryside larger three provinces such as appliance 5-12 persons stop also let electrical appliances sale appear larger decline.

From December 1, 2008 onwards, shandong, qinghai, henan, sichuan, Inner Mongolia, liaoning, dalian, heilongjiang, anhui, hubei, hunan, guangxi, chongqing, shaanxi 14 provinces, autonomous regions and municipalities and cities under separate state planning start promoting home appliance fields. However, according to the home appliance, the pilot work steps countryside of shandong, henan, sichuan, Qingdao three provinces and one city executive until 2011 in late November, other provinces, autonomous regions and municipalities directly under the central government, cities under separate state planning carried out by the end of November 2012.

Two years, home appliance in countryside policy has been playing enterprises to develop the rural market staged catalyst character, but analysts say that once home appliance, three, all stop countryside of fourth market will increase from the current electrical appliances sale scale of more than 3000 million yuan each year 25 billion yuan of the following declines to give the Chinese electrical appliances enterprise, which was a wake-up call. For now, although the cancellation of cushioning period has a certain time, however, for many home appliance companies consider policies and now is the end of the market approach to problems.

Overseas markets: strategy is heavy

In the consumer upgrades and state changes of economic growth pattern big background request, many people believe, in the future five years, home appliance market scale will be expanded further. Therefore, almost all the appliances enterprise are stepping up capacity expansion. Still, home appliances overall productivity serious surplus has also become the undisputable fact, plus home appliance with old change new countryside, the suspension on policies, this adumbrative, home appliance market competition over the next five years will be abnormal cruel. To this, it DongMingZhu gree President never denied that: “the future air condition market, another growth from some colleague’s fall.”

In such a state, the overseas market appears especially important. However, for home appliances are concerned, the overseas market has been a serious subject.

After the reform and opening up 30 years development, our country household electrical appliance industry made great achievements, many product yield of most of the global output. Nevertheless, the Chinese electrical appliances enterprise in overseas markets, it seems confined to the breakthrough of foundry O D M link, always in the endings, the value of the value chain the bottom of the smiling curve.

Since 2001, China’s household electrical appliance overseas business into a development, many enterprise exports fast track each year maintained double-digit growth. However, in addition to haier extremely specific enterprise outside, this high-growth back, is the enterprise overseas export model, the lack of simplification competitive advantage. Industry observers believe, our country more than 90% of the home appliance products were ordered out of the mouth of O E M single type, O D M mode, doesn’t do independent brand, also not deeply overseas market sales network, let alone established according to overseas customers r&d personalized products.

For example, in the microwave oven in the domestic microwave oven beauty glanze market share in the global close to 90% of the market share was close to 80%, but own brand in overseas market share is still low. Beauty microwave appliances division (group about chief, had revealed that beauty is 80% of overseas sales orders O EM whirlpool, Bosch Siemens, panasonic, sharp, LG and samsung ZhongDiDuan microwave oven basic is beautiful O EM; And galanz; spokesman ????????? also said: “the sea a mouth 9 0 % outside is OE M order.”

The personage inside course of study thinks, the overseas market own-brand exploit early investment is very big, can be obtained in O EM still profits, enterprise is difficult to have the initiative to develop own-brand impulse. In addition, countryside in home appliances, old change under the new policies, electrical appliances sale pulled a sharp increase, export turns sale in domestic market become O EM defuse crises of important ways, this makes own-brand export power weakened further. However, appliance enterprise should be aware that in globalization market today, lost in the overseas market will pay the cost of future more heavy.

Despite the difficulties, entering into overseas markets also appeared this or that kind of problem, however, in industry observers HongShiBin opinion, overseas market has become we must conquer difficulties, not dispensable choice. Look from whole, overseas forays helps the Chinese electrical appliances enterprise in the international division of labor system occupies advantageous position. Judging from the world, economic globalization will each link international industry chain with regional distribution of dynamic adjustment, always not to integrate into global production networks of businesses will be marginalized even eliminated.

From the entire Chinese manufacturing case, the overseas market is also the Chinese enterprise become multinational enterprise grants. The reason is simple: one is the need of digestive overcapacity; Two is to make the world brand needs. Rapid development in home appliances, including many aimed at making world famous brand enterprises and brand, they need more to the international market development and cultivation. “Famous brand, is not the door is not perfect and mature and incomplete, even if the high production concentration, market share in the domestic market, group, will not belong to the true sense international brand. But in the current special era, participate in the competition of the international market, not only can exercise team, learning the advanced idea and the management pattern, improve quality of enterprise and the internationalization level, make the key competitiveness, is more advantageous to the enterprise development and expansion, the achievement international enterprise and the world famous brand”, HongShiBin said.