The recent survey conducted by the Shanghai Stock Exchange in the consumer sector has unveiled the optimistic outlook of several home appliance companies for 2024. The notable emphasis from these companies revolves around “steady growth in overseas business” and “policies activating the need for upgrades”. This sentiment reflects the ongoing positive trajectory of the domestic home appliance industry's landscape.

As we look towards 2025, many questions arise surrounding the strategic progression of the home appliance sectorWhat drives this confidence? The companies surveyed shared a collective hope for bolstered consumer promotion policies, alongside a belief that a more lenient financing environment and enhanced overseas policies could underpin their successBy fortifying policy support, companies aim to refine their industrial layouts while accelerating their integration into the global market

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The overarching goal remains focused on achieving sustainable development through strategic international growth.

One of the standout highlights of 2024 is the impressive performance of companies venturing into international marketsMany home appliance enterprises have reported robust overseas expansion, marking it as a significant developmental focal point.

Whirlpool is one such company that has noted promising overseas market growth in 2024. It recently announced that, since the third quarter, its various overseas ventures— such as dishwashers in Latin America, ultra-thin washing machines in Southeast Asia, and large refrigerators in North America—have begun production, resulting in an uptick in export orders.

Survey data shows that companies benefiting from overseas market growth attribute their stable operations greatly to the continuous optimization of industrial layouts

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Firms are actively hastening their international production capabilities as a part of their growth strategy.

A key example comes from Wanlong Magnetic Plastics, a provider of magnetic plastic materials for white goodsThe company is making substantial strides in 2024 by establishing new manufacturing facilities in Egypt, Thailand, South Korea, and SerbiaAdditionally, in a bid to strengthen its foothold in Southeast Asia, Wanlong acquired 100% of Indonesia’s PT.PLUTOTech in July 2024, successfully meeting its “1515” internationalization strategy ahead of schedule— a strategy aimed at establishing 15 overseas production bases over 15 years.

Beiyi Co., which specializes in kitchen small appliances such as air fryers, has also embarked on an ambitious expansion plan in ThailandThey are on track to produce approximately 7 million units at their facility in Rayong Industrial Park, with an initial phase nearing completion and set for trial production by March 2025. This initial phase alone will bring about 3 million units of production capacity into operation.

Meanwhile, Fuhua Co., dedicated to the production and export of small cleaning appliances, exemplifies how many capable domestic enterprises are actively responding to international challenges

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By diversifying their market strategies, these companies are mitigating risks; since 2018, Fuhua has built a manufacturing unit in Vietnam to counter the adverse impacts caused by fluctuating trade policies.

As these enterprises continue to advance into international markets, the ease of such expansions remains a pertinent topic for many home appliance companies.

Dechang Co., which primarily exports vacuum cleaners to Europe and North America, highlights the need for ongoing policy supportThe company advocates for incentives that facilitate international procurement of domestic equipment and materials for overseas subsidiariesAdditionally, Dechang hopes for policies that motivate Chinese financial institutions to better serve companies entering international markets, through innovative financial products and investment models.

Another point raised by some enterprises pertains to the collaboration between domestic capital markets and international exchanges

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They are eager for enhanced cooperation and communication with global financial regulatory bodies, aspiring to establish a mechanism for information sharing to support cross-border mergers and acquisitions, ultimately aiding companies in navigating international market regulations and investment landscapes.

Turning to domestic sales, the latest 'old-for-new' appliance replacement policies have significantly bolstered consumer demand in the home appliance sectorAccording to the Ministry of Commerce, by early December 2024, nearly 29.6 million consumers purchased approximately 45.85 million units across eight categories of home appliances, generating sales of around 20.19 billion yuanThese policies have energized the demand for essential goods, propelling the growth of the mid-to-high-end market and simultaneously triggering a dual rebound in industry pricing and scale.

The effects of these policies are expected to persist into 2025. Some companies anticipate that the 'old-for-new' initiative will further unlock replacement demand in the first half of the year

However, they also acknowledge that the competition will intensifyWhirlpool noted that the "price-volume rise driven by essential needs" accentuates the trend of stronger players maintaining their positions, highlighting an emerging competitive phenomenon centered around high-value products, experiences, and services.

Wanlong Magnetic Plastics expressed their expectations for the expansion of the 'old-for-new' policy, hoping for increased opportunities as a resultSimilarly, Whirlpool noted that a comprehensive subsidy coverage could stimulate greater demand and more effectively facilitate industry structure upgrades.

In the face of intense competition, the shift towards “upgrading” rather than merely “replacing” presents itselfListed companies are actively seeking to nurture growth engines with renewed vitalityBeiyi Cois focusing on enhancing the quality of culinary results through intelligent and AI technologies for their core product, the air fryer, while also venturing into new categories with innovative products like coffee machines.

While solidifying their core operations, Fuhua has diversified into emergent productivity areas, such as energy storage and robotics, securing positions with confirmed application prospects

This expansion bolsters their domestic sales while effectively mitigating risks.

As these companies engage in market expansion, technological innovation, and optimizing industrial layouts, their sensitivity to the financing environment becomes more pronouncedThe majority of businesses surveyed are private firms, and the accessibility of financing emerges as a vital concernThe term “more lenient” has surfaced repeatedly, reflecting the companies’ shared hope for an encouraging capital market environment.

Some companies articulated desires for refinements in refinancing conditions and processes tailored to their characteristics, highlighting the need for eased regulations surrounding refinancing green channelsThey also call for increased support for cross-industry integrations, asserting that policies encouraging traditional manufacturers to partake in mergers and acquisitions across sectors could drive transformation, innovation, and the cultivation of new competitive advantages.