Sponsorship of the FIFA World Cup is driving up China's home appliance exports to the Middle East. And the companies that make them are stepping up their sales efforts in these two regions. Huang Yichang has more.
A massive LED screen provides an impressive visual experience; air conditions provide the ideal temperature; Chinese electrical goods are found in millions of households in the Middle East and Africa.
China's home appliance exports to the Middle Eastern market rose by 11.2 percent year-on-year in the first ten months of this year, despite overall home appliance exports falling slightly.
ZHOU NAN Secretary-General, China Chamber of Commerce for Home Appliances Import and Export "The Middle East and Africa have a high proportion of young people, which presents vast market potential in the home appliance industry.
"Due to geopolitical reasons, the potential for consumption wasn't fully unlocked in the past few years. With the ongoing World Cup and rising oil prices, consumption has begun to grow."
Hisense, one of the sponsors of the Qatar World Cup, chose South Africa as the first place to do their overseas business. After 20 years of development, it has become a major player in the region, tailoring its products to local markets.
JASON OU General Manager, Hisense Middle East and Africa Business "For example, in Africa, the regular fridge other people bring in are white. But when we analyze the behavior of the consumers, we find out that when some ladies are cooking, they like to look at themselves in the mirror, so we developed the mirror fridge in the market, and the sales are outstanding."
Haier, another big name in electronics, also attributed its recent growth in sales to its localization strategy.
LI DAPENG General Manager, Haier's Middle East and Africa Business "Nigeria, for example, is a country with high temperatures and there are frequent and widespread blackouts. But most families have generators. In response to the demand, we developed the generator inverter air conditioner. It's become the best-selling air conditioner in the country."
Li Dapeng says Chinese smart household devices are increasingly popular among people looking for high-end products.
LI DAPENG General Manager, Haier's Middle East and Africa Business "Chinese products are no longer seen as low-price and low-quality. Instead, they have become a symbol of fashion, technology, and high quality. Especially products that bring a 'future lifestyle experience' have significantly increased our market share in those regions."
To expand further in the Middle East and Africa, home appliance companies like Midea, Hisense, and Haier have been building factories in countries including Egypt, Algeria, and Jordan. And more investment in localized manufacturing is on the way. Huang Yichang, CGTN, Zhengzhou, Henan Province