HO CHI MINH CITY, Sept. 1, 2011 /PRNewswire-Asia/ --
While Europe and the US are
experiencing a downturn and capital markets are getting pummeled,
the Association of Southeast Asian Nations (ASEAN) seems to be
working out a lot and keeping its prosperity. Leading Chinese and
Japanese home appliance makers are optimistic about the prospects
for the region, as evidenced by ongoing investments and
acquisitions.
At the new product release
conference held by Midea Living Appliances Group in Vietnam on June
28, 2011, Midea announced an investment of US$40 million to build
their third manufacturing factory for the ASEAN market, as part of
the company's strategic development plan in the region. One month
later, on July 28, Haier, another Chinese home appliance giant,
announced a major investment to acquire the washing machine,
refrigerator and other home appliance businesses of Sanyo Electric
in Japan and ASEAN countries.
A middle management executive at a
Japanese home appliance maker reflected that this is definitely no
coincidence. He further elaborated, "It's a signal that Chinese
home appliance companies are collectively looking at the good
prospects of the ASEAN market, and initiating a new round of
overseas expansion."
He is of the opinion that the
activities being undertaken by Chinese home appliance manufacturers
indicate the start of another round of reshuffling in the ASEAN
market.
Looking at the issue more closely -
why are Chinese makers focusing to such a degree on the ASEAN
market? "One of the reasons is the region's geographic advantage.
In addition, most Chinese brands who entered the market have
already established their own brand identities there. This is at
variance with the usual way manufacturers conduct their outsourcing
efforts: they usually only participate in the manufacturing and
trade processes – that is the route normally taken by European,
American and Japanese brands. The Chinese brands are trailblazing a
new trend at a global level: they are building their own
comprehensive channels, including taking control of both the
manufacturing and branding aspects," he commented, before further
adding, "Meanwhile, in terms of the entry route for brands, the
ASEAN region is undoubtedly the one for Chinese home appliance
makers to break their teeth on, before moving on to a full
globalization of their efforts.
In addition to expanding capacity,
Chinese home appliance brands will continue to pay close attention
to building their own channels in the ASEAN market. Leading Chinese
home appliance maker Midea Living Appliances Group's self-managed
channels are already fully developed and working. The company's
ASEAN sales joint venture with premium clients in Vietnam has been
registered with the necessary authorities, and will formally open
for business in September. Its sales network encompasses all
provinces and cities across Vietnam, paving the way for the easy
set up of channels and localization of human resources in the
country. In other key ASEAN markets, Midea has also expanded its
sales channels through similar collaborations with local
agents.
SOURCE Midea