The 115th Canton Fair kicked off on April 15, 2014. Once again, all eyes were focused on the export of home appliances. Most enterprises interviewed said that smart home appliances have become a new bright spot this year. The recent downward trend of the yuan exchange rate is conductive to export business, however, the weak economic situation in export target countries remains the biggest constraint to export growth.
Mixed advantages and disadvantages in export business
According to Yao Youjun, vice president of Homa (a top appliances brand specializing in refrigerator manufacturing and export), China's home appliance exports this year have enjoyed advantages and suffered disadvantages.
On the one hand, the main export destinations are developed countries in Europe and the Americas. However, the economy in these regions is still not underperforming, and the market is reaching its saturation point. On the other hand, the recent downward trend of the yuan exchange rate and the fall in raw material prices have reduced export costs to a certain extent.
Smart products become a new growth point
Zheng Zuyi, chairman of Guangdong Chigo Air conditioning, said that the company's exports to American regions achieved a double-digit growth year on year. In addition, its exports to south Asian, east African and south African regions continue to grow. Chigo ranked second in air conditioner exports in January and February.
Zheng said that a new bright spot in this year's Canton Fair was the dominant position of smart products. All home appliance companies intend to focus on promoting smart products, which will undoubtedly become a new growth point for foreign trade.
Fang Xuyu, deputy general manager of Hisense International, a leading home appliance company in China, said that smart TV had become a most important part of its export business. Currently, smart TV accounts for more than 50 percent of its domestic TV sales, and 20 to 30 percent of its export business.
Fang predicted that second quarter sales would be better, mainly because of the impact of the World Cup. April is the peak season for product delivery, when TV sales in countries such as Germany, South Africa, and Spain show a high growth rate. At the same time, the demand for smart TV and HD TV will grow due to the impact of the World Cup.
Canton Fair, short for the China Import and Export Fair, is held biannually in Guangzhou every spring and autumn and has become the best-known comprehensive trade show in China.
The article is edited and translated from 《智能家电出口或成新亮点》, source: Information Times, author: Liu Li.