Global Competitors: China’s Top 5 Electronics Brands

Global Competitors: China’s Top 5 Electronics Brands
Jun 06, 2011 By Edward Kofi Turkson , eChinacities.com

After a stay in China, most expatriates remain sceptical towards Chinese brands (especially technological or consumer electronic brands) and refuse to admit that there are some Chinese brands on par with similar Western brands and others that even far exceed some Western brands in terms of quality, efficiency and durability. This “not durable” stigma attached to Chinese brands still lingers in the minds of consumers caught in-between this quagmire. Why? Because for more than a decade now some home grown local Chinese brands have been making remarkable accomplishments that make their products deserve recommendation at home and abroad.

Arguably, some unscrupulous counterfeiters out there are determined to get a share in the profits these brand names are raking in, but thanks to the government’s strong determination to reduce intellectual property theft through rigorous copyright laws, the situation (though it still persists) seems to be on a downturn now – allowing genuine brands to list on international markets in recent years.

Another reason why most expats are not so familiar with Chinese electronic brands could also be lack of information in addition to foreign propaganda directed at Chinese brands.

For expat consumers willing to spend hard earned cash on genuine brand-name products but hesitant to update their views on cutting edge Chinese brands in consumer electronics and technology, this article lists some brands you should consider worthwhile. Household names like Haier, Lenovo, Midea, Hisense, and TCL are among the mainland’s leading providers of outstanding consumer electronics who are now making inroads into international markets.

1) Haier 海尔
It will be interesting to come across a foreigner who has lived in China for six months and not yet come across any Haier product. The Qingdao-based company and household appliance manufacturer (products include refrigerators, tvs, air conditioners and washing machines) is the leading white goods manufacturer in the world with a global share of 6.1 percent in 2010. The company has participated in the creation of a huge number of Chinese national standards, international standards and industrial norms. With 29 manufacturing bases, eight comprehensive research and development centres and 19 foreign-based trading companies, Haier is reported to have participated in the drafting of over 51 international standards, of which 27 have been adopted so far. Commanding a workforce of over 70,000 employees around the globe, the company posted an annual turnover of 135.7 billion Yuan in 2010.

In its expansion into foreign markets in 2007, the Haier Group purchased a local refrigerator manufacturer in India employing over 300 workers with an annual output of 350,000 units. That same year it purchased Sanyo’s refrigerator factory in Thailand and established the Haier Thailand Industrial park making it the second largest refrigerator manufacturer in Thailand. Haier’s patent application totals over 10,000, putting it in first place among Chinese home appliance firms. The Group saw total revenues of 20.72 billion USD last year, a 9 percent increase from the previous year and an overall profit of 946.80 million USD – a jump of 78 percent.


2) Lenovo  联想
Mention Lenovo and you’ll see dazzling smiles flit across the faces of your Chinese friends. This is a brand Chinese consumers associate with class and it controls the largest share of China’s booming PC market. The company develops and manufactures notebook computers, tablet PCs, cell phones, workstations, servers, storage devices, software and provides a wide range of electronic-based services.

The world’s fourth largest PC maker, the Lenovo Group acquired IBM’S personal computing division- IBM PC for 1.7 billion USD in 2005, setting the benchmark for the PC market in China and marking it as a fierce competitor against leading multinational brands. In January of this year, Lenovo formed a joint venture with Japanese PC maker NEC to establish the Lenovo NEC Holdings registered in the Netherlands. It reported the first ever double-digit global market share (10.2 percent) between the fourth quarterly reports of 2010, and reaching a record high 8.8 percent global market share for the fiscal year. This success is reflected in the Group’s 2010 sales which increased 11.4 percent to over 16.605 million USD. The Lenovo Group is optimistic about its future earnings and anticipates annual revenues of 21.6 billion USD for the 2011 fiscal year.

Be on the look out for Lenovo’s user friendly all-in-one desktop. The model is great for users who like fewer wires and desktop devices – and with the Lenovo Enhanced Experience 2.0 feature, the system posts a reported booting time 20 seconds faster than other computers. The company’s cell phone, LePhone, rivals Apple’s iPhone selling for remarkably half the price of the popular mobile, so consumers looking for a quality phone similar to the iPhone but with a cheaper price tag can rest assured. Other sought-after innovations include the tablet PC LePad, ThinkPad Edge, ThinkPad X100e, ThinkCentre M90, ThinkCentre family (featuring Intel’s new core processors) and the ThinkCentre A70z that occupies 70 percent less desk space than the traditional desktop and monitor. Lenovo plans to introduce two tablet PCs into the US market this summer.


3) Midea 美的
Famous for household appliances such as residential and commercial air conditioners, washing machines, microwave ovens, refrigerators, electric warmer & fans, vacuum cleaners and a host of white goods, the Midea brand is among the top five home appliances manufacturers in the world. With 15 domestic production bases, 60 overseas branches and exports to more than 200 countries worldwide, the company is noted for its commitment to producting energy efficient and environmentally friendly products. Midea currently has a workforce of more than 110,000 employees and over 1,000 related enterprises with an annual production revenue of nearly 1 billion USD.

In 1998 Midea acquired Toshiba-Macro and after acquiring Hualing and Royalstar went further to sign a joint venture with Toshiba Carrier in 2004. In 2005 it acquired the Chunhua Vacuum Cleaner “Little Swan” and in 2008 signed another joint venture. In 2009 the company invested over 400 million USD on research and development where over 15,000 engineers are cranking out an average 600 new products a year. The company’s net profit shot up 69.24 percent year-on-year in 2010 to 3.3 million RMB (476 million USD) with total operation scale exceeding 100 billion RMB. In March this year, the company signed a two-year agreement with British Telecom for a series of multi-protocol label switching to provide services to 10 overseas branches in Germany, Spain, Italy, US, Canada and Mexico among others. Aside from its endeavours in household appliances, the company is also involved in real estate, logistics and other large-scale comprehensive modern enterprises.

4) Hisense 海信
Hisense is well known for its chain of consumer electronic appliances, with product lines ranging from television sets, LCD monitors, mobile phones and air conditioners to washing machines. It operates 13 domestic manufacturing facilities and retails its products under five brand names including: Hisense Kelon, Hisense Roshen, Hisense SAVOR and Hisense-Hitachi. It also provides services like product design, property management, IT services, pattern making and moulding for fibre optical transceivers and intelligent traffic management systems. Commanding a workforce of more than 60,000 employees worldwide, Hisense has over 300 sales companies and more than 60,000 service outlets across China. It ranks number one on the mainland for flat screen TVs.

The brand is recognised as a top 10 player by global institutions like Euromonitor and the Consumer Electronic Association – partnering with multinationals such as IBM, Hitachi and Whirlpool for the development and marketing of air-conditioners, refrigerators and information technology. The company reported sales revenue of 63.74 billion RMB (9.5 billion USD) for the 2010 fiscal year, an increase of 13.85 percent over the previous year.

It is interesting to note that Hisense was the first brand to introduce Smart TVs, 3D TVs and other high end products. As of 2009, the company had applied for 5,179 patents of which 4,009 had been authorised. It reportedly participated in creating three international standards and 145 national and industrial technical standards.

For nursing mothers, Hisense’s Baby Sense Respiratory Movement Monitor is a highly sensitive non-touch device that monitors breathing and movements as your baby sleeps and alerts parents and caretakers of any irregularities. However, parents should bear in mind that the device cannot take any action beyond sounding an alarm.

5) TCL
The Creative Life (TCL) brand’s primary products include television sets, air conditioners, electric lighting, DVD players, GSM & CDMA mobile phones, home appliances and other gadgets just to name a few. Its next generation product line includes Android-based smart phones, Internet TVs and 3D LED TVs.

What is interesting about this brand? It’s the only brand that delivers television products powered by all 3D display technologies. The 3D LED TV is said to include a series of technologies that reduces glare using a combination of polarised and natural light. The Huizhou-based company is the sixth largest television manufacturer in the world. In 2004, TCL entered into a joint venture with French TV manufacturer Thomson to produce TVs and DVD players for the global market. In 2004, the company entered into another joint venture, this time with Alcatel, to manufacture mobile phones but ceased using the Alcatel name to the much preferred TCL brand. It employs more than 50,000 people globally in over 80 operations including 18 R&D centres, 20 manufacturing bases and more than 40 sales offices worldwide. Its research areas include flat screen technology, video and graphic processing technology, digital TV technology, 3G mobile communication technology and a host of others. The company’s total revenue for the 2010 fiscal year amounted to 51.8 billion RMB, representing an increase of 17.1 percent over the previous year and a gross profit of 772 million RMB.

The list could on and on, but these are the brands have that have set the benchmark for competitors in local and multinational markets for white goods appliances by building on their trusted brand names. For expat consumers who are still doubtful about the quality and durability of local Chinese brands, the upcoming 2012 China Consumer Electronic Fair to be held in Shenzhen is a fine opportunity to acquaint yourselves with these and other consumer electronic brands popular in China. 

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Keywords: Safe Chinese consumer electronics brands quality Chinese electronics brands good Chinese tech companies good Chinese electronics brands

3 Comments

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BAD

It"s impossible to avoid buying "made in China products" as lot of top brand companies manufacture here. However the Chinese themselves will not be able to compete in terms of quality for many years. If you want a quality product that is going to last you years and years would you buy Chinese? I mean really would you?

Jun 13, 2011 08:06 Report Abuse

BAD

Chinese are not innovators and therefore will never be world leaders in anything. You have to be able to set the trends to reach and remain at the top. After living here for almost three years it is apparent that Chinese simply do not care for perfection. I love the story of 差不多先生 because it is so accurate. In order for China to create products renowned for their quality the code of social morals and principles will have to change first...pure and simple...

Jun 14, 2011 00:51 Report Abuse

marc

Electrolux, Whirlpool, Carrier AC, Toshiba AC, and Sanyo just some names that foreigners trust....all being made in China by Midea. Swings and roundabouts. My ex gf brother once asked me to buy him a REAL Man U shirt, from Old Trafford Stadium. I duely did this on a trip back home, complete with photos and receipts....on return to Bangkok i presented said shirt, photos, bag etc for proof...10 mins after this he threw the shirt at me and said some pretty bad things in Thai...puzzled i asked my gf what was the problem?......"It says made in China on the shirt" .....

Jun 07, 2011 21:30 Report Abuse