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Day 4 - IFA International

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SPOTLIGHT ON CHINA Region The Electronic Dragon The evolution of influence of the world’s most populous nation on global markets The rising influence of the major Chinese players continues inexorably, and each IFA show is a unique opportunity to measure the progress that has been made each year. 2013 marks a new major step with the growing will of many of these companies to develop on the international scene under their own brand. Branding is henceforth the key word, because the undeniable progress in terms of R&D, registering of patents, innovation, design, and quality product allow Chinese brands to communicate proudly under their own colours. The quality of the Chinese exhibitors’ stands at IFA is also an important indicator of this evolution. And the presence of the highest level of management at IFA – some for the first time – reveals the will of the latter to share their European and global ambitions with the world . China has, for many years, become known as the world factory in terms of OEM and ODM manufacturing, but what is changing is the forward march of China’s own brands. ChangHong, Haier, Hisense, TCL... Big names back home, now at the head of this movement that’s very much reminiscent of the incredible evolution of the Japanese Technical Consumer Goods business model at the end of the 1970’s and early 80’s. Back then, it took around ten years to develop from the stage of manufacturing entry-level products to becoming reference manufacturers. Later came the Korean giants, who upon entering the market for branded products in the late 90s became the new benchmark for quality and reactivity, and whose branding, previously a braking point to the sales of their goods, became a sales booster. The next ten years will see Chinese manufacturers TCL booth at IFA claim with pride “Created, Designed & Made in China” as has been the case for certain Japanese and Korean giants. For now, we bring you the current state of play. CNC Sets Out Five-year Plan Chinese TV manufacturer aims to raise its global profile New Century Optronics Co. is a subsidiary of China New Century Holding Group Corp. (CNC). The company is a leading manufacturer of LCD TV and LCD monitors from its factory in Taizhou, close to Shanghai. CNC has 26 product lines (18 lines doing LED, DLED and 8 lines doing LCM) with a capacity of 6.3M units per year. Its chairman, Chen Desong, outlined the company’s plans for expansion. “CNC intends to be one of the top-10 TV manufacturers in the world within next five years, which means we need to be aggressive in the marketplace, and achieve a high profile among prospective clients.” To achieve this, Chen said the company intends to participate in all the leading trade shows around the world. CNC also plans to establish service facilities 48 in key territories in order to more efficiently serve its clients. “Our goal is to establish sales channels in every country and be the top-5 company in each of those countries,” he said. “To support our sales networks, we aim to have a service infrastructure ready in Europe, North and South America, the Middle East, and Asia, within the next two years. One of our sales “We hope to attract a lot of media attention” targets is to reach 10 million units by the year 2015.” Chen said that IFA is central to CNC’s plan to enhance its corporate image and increase product awareness. “IFA is the leading trade fair in the world,” he said. “While we’re here we hope to attract a lot of media attention, and potential buyers too.” He added that IFA would also help CNC to understand international market trends, in order to be able to define its product and marketing Chen Desong CNC Chairman strategies. Chen is also at IFA to learn about local markets and to establish new business partnerships.” Hall 25 Stand 155

SPOTLIGHT ON CHINA Region ECO-FRIENDLY PRODUCTS FROM CHINA ON SHOW IFA welcomes winners of CHEARI innovation award CHEARI, the China Household Electric Appliance Research Institute, works alongside the Chinese government to help introduce environmentally friendly electrical household appliances to the marketplace. CHEARI is also the founder of the China Recycling Union. The 9 th Annual China Household Appliances Innovation Award winners are being presented at IFA this year. Prizes are awarded for Technology Innovation, Product Innovation, Design Innovation and Best Brand. All categories are subject to selection criteria that evaluate practical use, technical innovation, product development and industrial design, and environmental friendliness. The most innovative products are selected annually to initiate a competitive environment for new technology, thereby driving technological advancement. This year’s winners include the Midea 2 ST 3302, a portable induction cooktop with two plates offering a variety of uses; and the Midea KFR-26GW/ BP2DNY1Y-F3, a wall mounted, compact air conditioner. Another winner, the Gree i-Series Climate Control is a standalone air conditioner series that comes in different innovative designs. Since its inception the awards have set the bar for the best Chinese manufacturers of household goods and the winners represent the most innovative ideas from the Chinese market. The Gree i-Series Climate Control Changhong Expands into Europe Records 100% growth in the European market Chaim Ning, Changhong Senior Vice President Europe, explains how the fast-growing Chinese CE brand manufacturer is increasing its stake in the highly-coveted european market. [ Interview by Richard Barnes ] While our overseas business increased by nearly 50% last year, turnover in the European market increased by almost 100%. We succeeded in improving the OEM Business due to our convincing quality and impressive TV design in all price categories. We also changed many internal processes and strategies, helping us improve production quantity, modernise our production lines, and set new service rules, especially for our new large-size screens such as Ultra HD. Some people in Europe may still not be aware of just how important Changhong is in your home market. Can you tell us more about the brand’s background and your international ambitions? Some people are not aware of our company and our influence in the global CE market due to our quiet approach to business development. The market never forgets a mistake. Talking before acting is not our philosophy. Changhong was established in 1958 and is now one if the most valuable brands in the world. With broad competencies, we produce core components, OLED and PDP Panels, white goods, mobile devices, navigation systems and so on. We currently have 90,000 employees worldwide. We succeeded to become an important strategic partner for one of the biggest and most important chain stores in Europe and increased our turnover by 200% during a time where the total TV business decreased by 20%. But the European market is different to our domestic market and so we wanted to understand the differences first. Now we are prepared and are ready to start. What are your key strengths and what would you say are the main USPs of your top products? Besides new technologies such as smart TV, Ultra HD, OLED, smart control and so on, Changhong will invest a lot of effort into new TV solutions considering the changes in the trade landscape, taking into account the connectivity and compatibility of other smart devices. Hall 25 Stand 133 Chaim Ning Changhong Senior Vice President Europe IFA International • Monday 9 th September 2013 49

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