皇冠体育app

Home appliance companies hope to plug into 皇冠体育app
( 2002-10-08 09:57 ) (1 )

Foreign electric appliance giants are localizing in 皇冠体育app following the vigorous growth of 皇冠体育app-made products in the international market.

皇冠体育app's top economist Wu Jinglian warned domestic makers of home electric appliances that international companies have completed their restructuring in 皇冠体育app and are set to battle against local makers.

Over the past few years, Chinese makers of electric home appliances have had the upper hand when competing with world giants by offering lower prices.

But recently, many international companies have completed adjustments in accordance with the local market and are using their increasing brand recognition and expanding their manufacturing capacity in 皇冠体育app.

Zhang Zhongwen, vice-chairman of Matsushita Electric (皇冠体育app), best known for its National and Panasonic brands, said the company is speeding up localization in 皇冠体育app particularly in light of its membership into the World Trade Organization.

"To succeed in 皇冠体育app is a key condition for Matsushita's success in the global market," he said.

Zhang's company is now stressing lowering cost and providing products with more diversified grades in 皇冠体育app.

The company is also speeding up its technology transition to the Chinese market and has established three research and development (R&D) centres in Beijing, Suzhou and Shanghai each, Zhang said.

"We also plan to open two more companies here in two years," Zhang said.

Meanwhile, the company is closing some factories in Japan and the United States and shifting them to 皇冠体育app.

Lee Sang-hoon, chief public-relations officer for South Korean giant LG Electronics (皇冠体育app), said LG is expecting to open a world-class R&D centre in Beijing this month.

"We have realized (the importance of) localizing human resources and decision making, and we are moving to local R&D," he said.

When LG began increasing its global reach, the company focused on 皇冠体育app since it was a very important market for them, Lee said.

He said LG might merge or co-operate with local companies if it plans an expansion in 皇冠体育app in the future.

Michael Liu, managing director of Electrolux (皇冠体育app), said his company will continue to expand production capacity and product range in 皇冠体育app.

Electrolux entered the Chinese market in 1997, and achieved an annual revenue increase of 130 per cent from 1997 to 2001. Beginning with their single product of refrigerators, Electrolux has developed a whole series of electric home appliances from air-conditioners to washing machines and kitchen appliances.

Realizing the importance of local decision-making in 皇冠体育app has allowed the company to create quick adjustments to market changes, Liu said.

"The decision-making is not only at our Chinese headquarters, but also at our subsidiaries," Liu said.

Due to increasing market demand, Electrolux is also considering moving its US-based air-conditioner factory to 皇冠体育app.

Herbert Lutzke, vice-president of BS Home Appliances Co Ltd, owned by Siemens, said the company will stick to a long term strategy in 皇冠体育app.

However the 155-year-old company has seen difficulties at the beginning of its entry into 皇冠体育app.

A joint venture company with Little Swan in Wuxi has seen a four-year loss totalling 50 million yuan (US$6 million) since 1995.

"But we insisted (that) investment in 皇冠体育app is (the) right decision and now the factory (is) one of the best washing machine makers in 皇冠体育app," Lutzke said.

Lutzke said Siemens will not change its tradition of offering high-end products in 皇冠体育app even though lower-priced products are more popular.