Chinese home appliance maker Midea Group will increase investment in local R&D and expand its footprint in Southeast Asia, Latin America and the Middle East.
The move is part of Midea's strategy to increase new revenue** and increase the brand's presence overseas.
Our R&D center in North America was established in 2018.
Midea started as an OEM or OEM in North America in the early days, but was determined to develop the company's own brand to strengthen its global core competitiveness.
Zhou said Midea will focus on building its own brand and increasing localization, including hiring local staff and innovating product design based on the needs and preferences of local consumers.
At present, Midea has 35 R&D centers around the world.
Midea will also ramp up R&D investment in Brazil to meet Latin American demand, while its R&D center in Japan will focus on developing cutting-edge technologies and launching innovative products for the local market, Zhou said.
He said that Japan has always been a leader in advanced technology in the heating, ventilation and air conditioning industry.
The Southeast Asian market will be a key focus in Midea's globalization process.
The first air conditioner at Midea's Indonesian plant is expected to roll off the assembly line in the second quarter of this year, while it will explore the possibility of establishing production bases in Saudi Arabia and Mexico.
"In the past, most Chinese companies adopted the OEM model, but now they tend to build their own brands and compete globally," said Leung Chun-peng, an independent consumer electronics analyst. ”
Liang also said that the establishment of overseas branches or production bases not only brings China's advanced manufacturing, R&D and management capabilities to overseas markets, but also creates jobs for local people and improves the competitiveness of Chinese companies on the global stage.
According to All View Cloud, a Beijing-based market consulting firm specializing in home appliances, sales in China's home appliance industry reached 793 billion yuan in 2023, up 3% year-on-year.
Zhao Meimei, assistant president of Beijing-based market consulting company **C, said: "With the domestic home appliance market almost saturated, it is inevitable that Chinese home appliance manufacturers will have to expand their overseas footprint to gain new profit growth points and long-term development. ”
Establishing R&D centers outside of China will help Chinese companies gain an innovation advantage, master new technologies and gain a greater voice in the highly competitive global market, she said.