China produces most home appliances

Chinese home appliance makers have acquired global dominance in the last decade, through acquisitions, brand promotion and innovation, according to a study.

A report published by the China Economic Weekly, using data from the China Household Electrical Appliances Association, said the country's production capacity of colour televisions accounted for 80 per cent of the world's total.

Production of air-conditioners, refrigerators and washing machines accounted for 70 per cent, 50 per cent and 40 per cent of the world total respectively.

The total industrial output of the sector last year stood at 1.07 trillion yuan-- 4.7 times that in 2001 when the country became a member of the World Trade Organisation, the report said.

Though Chinese brands faced tough competition from competitors like Hitachi, Samsung, LG, Chinese firms aced the competition by making cost-effective products, seeking overseas acquisitions and promoting home-grown brands through creating overseas operations.

The efforts paid rich dividends as exports of home appliances exceeded $46 billion last year. The same figure stood at $8.75 billion in 2002.

According to industry experts, more foreign brands may be merged or acquired by Chinese home appliance companies amid the sluggish global markets. They add Chinese companies like Haier had also made breakthroughs in technological innovation  that had helped several companies, including Gree, Midea and Galanz, gain international recognition for their brands.