Chinese Appliance Companies Head for Global Markets - Competition Heated in Emerging Markets

摘要

Even though more than half of the 2011 air conditioner sales season has passed and increased production costs are narrowing profit margins, leading Chinese manufacturers including Gree, Midea, Haier, TCL, and Galanz are still expanding their production capacity. Currently, the total production capacity of these manufacturers is estimated at more than 100 million units a year. Aided by government energy-efficiency regulations, starting last year leading manufacturers have rushed to increase production of inverter air conditioners. Escalating prices of raw materials and rising labor costs, however, have shrunk profit margins in the domestic market.