Gree eyes global expansion
| Global Times | 2011-6-20 0:36:00 By Chen Yang |
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China's largest air-conditioner maker Gree Electric Appliances Inc set up a branch in the US Saturday, in order to be close to local customers and expand its presence in the global market.
Gree's US branch, located in the City of Industry in California, will help US customers know more about the Chinese brand and offer job opportunities for the local people, Dong Mingzhu, president of Gree, said at a launch event Saturday.
Gree products will be sold at mainstream retailers like The Home Depot, Wal-Mart and Sears, said Charley Loh, CEO of MJC America Ltd, Gree's business partner in the US.
Through the cooperation with MJC, Gree can cut costs on market research and development, as well as raise its international profile and market share, Loh added.
Gree's annual overseas sales increased 67.12 percent year-on-year to 9.75 billion yuan ($1.5 billion) in 2010, accounting for 17.3 percent of its total sales.
"If Gree wants to continue its growth and become a global brand, it will have to expand into markets outside China, especially in the US and Europe," Liu Buchen, home appliance expert at Zhengzhou-based Jiachunqiu Media Institute, said.
"Setting up a branch in the US can help Gree boost overseas sales and facilitate its future plan to set up a factory there," Liu said. Currently Gree has overseas plants in Brazil, Pakistan and Vietnam.
With the competition becoming fiercer in China, home appliance makers are looking abroad for opportunities.
Hefei Meiling Co announced last month that it would invest $3.4 million and set up two joint ventures in Pakistan to produce and sell air conditioners there.
Haier Group, China's top home appliance maker, aims to generate two thirds of its revenue from overseas markets in the next three to five years.
Figures from Euromonitor International Plc show China's home-grown brands only took up a 2.9 percent share of the global market.
China aims to boost domestic home appliances brands' share of the global market to 30 percent by 2015, according to the Ministry of Industry and Information Technology.
"More domestic home appliance makers are moving from making products for big international companies to promoting their own brands in overseas markets," said Liu of Jiachunqiu Media Institute.
Gree's US branch, located in the City of Industry in California, will help US customers know more about the Chinese brand and offer job opportunities for the local people, Dong Mingzhu, president of Gree, said at a launch event Saturday.
Gree products will be sold at mainstream retailers like The Home Depot, Wal-Mart and Sears, said Charley Loh, CEO of MJC America Ltd, Gree's business partner in the US.
Through the cooperation with MJC, Gree can cut costs on market research and development, as well as raise its international profile and market share, Loh added.
Gree's annual overseas sales increased 67.12 percent year-on-year to 9.75 billion yuan ($1.5 billion) in 2010, accounting for 17.3 percent of its total sales.
"If Gree wants to continue its growth and become a global brand, it will have to expand into markets outside China, especially in the US and Europe," Liu Buchen, home appliance expert at Zhengzhou-based Jiachunqiu Media Institute, said.
"Setting up a branch in the US can help Gree boost overseas sales and facilitate its future plan to set up a factory there," Liu said. Currently Gree has overseas plants in Brazil, Pakistan and Vietnam.
With the competition becoming fiercer in China, home appliance makers are looking abroad for opportunities.
Hefei Meiling Co announced last month that it would invest $3.4 million and set up two joint ventures in Pakistan to produce and sell air conditioners there.
Haier Group, China's top home appliance maker, aims to generate two thirds of its revenue from overseas markets in the next three to five years.
Figures from Euromonitor International Plc show China's home-grown brands only took up a 2.9 percent share of the global market.
China aims to boost domestic home appliances brands' share of the global market to 30 percent by 2015, according to the Ministry of Industry and Information Technology.
"More domestic home appliance makers are moving from making products for big international companies to promoting their own brands in overseas markets," said Liu of Jiachunqiu Media Institute.
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