The Chinese giant Hisense Group (17 billion dollars turnover in 2017, the world's third largest TV manufacturer) is the new global protagonist of White and has officially declared in a rather "warlike" statement that from now on it will set out to conquer the European market . It was by no means one of the protagonists of the world market for large appliances until recently acquisition of Slovenian Gorenje, which with the two brands Gorenje and Asko (Scandinavian brand of high-end majap), has brought in a turnover of over 1 billion euros.
The arrival of Hisense has sheltered Gorenje from future risks (the company was accusing significant losses despite having technologies and quality) but also allowed the Chinese giant to count on two European brands, known and above all widely present also in the markets of Eastern Europe and Russia. And on three European factories.
Hisense, after acquiring Sharp USA and Toshiba (TV division), is today a giant of growing industrial power that invests 5 percent of its turnover in R&D. For years, he has chosen a strategy of expansion on markets all over the world – he is also the leader in Africa – and has considerable financial exuberance, so much so that he has signed up without batting an eyelid for the sponsorship of the soccer world championships in Russia, paying several tens of thousands of euros.
THE CHINESE BUY AND INVEST
But despite being the world's third largest producer of TVs and refrigerators, it didn't have an adequate image for its size. The war that has raged for years between Koreans and Chinese in consumer electronics, where margins and earnings are now very low, has made it necessary - for everyone - to attack the most prosperous markets for large and small household appliances, after having made a massacre of local producers (European and American) and after beating and reducing the big Japanese to supporting roles. And after conquering the air conditioning markets with advanced technologies and very low prices.
Zhou Houjian, president of Hisense, also clarified a precise strategy in a recent interview granted to the authoritative English magazine GC, GetConnected, declaring that the company is mainly interested in the medium-high sectors of the market and that Hisense's future growth will be achieved almost totally abroad and possibly with acquisitions. First of all because the Chinese market is close to saturation and then because it is only possible to find those brands abroad that allow Chinese multinationals to get around the classic almost insurmountable obstacle for a profitable business: the cheap image that distinguishes made in China.
Haier thus bought Candy-Hoover for 570 million euros, with brands, market shares, after having bought General Electric and having invested almost 10 million dollars in just one of the American factories to expand the production of Premium and Super Premium side by side. And, even earlier and with great foresight, he had also acquired the New Zealander Fisher&Paykel, a very high-end builtin brand. For years, Haier has been selling its prestige and luxury appliances in China under a classic Italian name, Casarte, explicitly inspired – as explained on the website and in the catalogues – by the beauty and innovation of Italian history and art.
HIGH END AND ITALIAN MANAGERS
Will it be enough to take over historic European and American brands to establish itself on the now very saturated markets such as the American and European ones? No, also because the Chinese giants and even the Korean ones have only recently stopped filling their foreign offices with native officials, often not inclined to understand the complexities of the markets and behaviors that are absolutely different from those of the mother country. Indeed, often opposites.
Now this rigidity is beginning to dissolve and the Chinese multinationals - as well as the Korean ones - rely on Italian managers who come from Italian white goods companies and who know the difficulties, the secrets, the paths necessary to deal with increasingly demanding and very demanding retailers and consumers different, according to the countries. Haier thus achieved in 2018 a +27 percent on the European market and a +20 percent in value on the very difficult market of our country with a 30 percent increase in the average price but after many years of slow sales.
Gianluca Di Pietro, country manager of Hisense Italia who will have to follow the expansion of the company especially in the sector of large appliances and high-end built-ins, also comes from white. However facilitated by the fact that Gorenje manufactures these products not far from the border with Italy but with decidedly lower costs. Thus, with the three European factories in Gorenje (in Slovenia, Czechia and Serbia), Hisense is advantageously positioned in Europe and very close to the Middle East and Africa.
In the meantime the negotiations between Midea and Whirlpool continue, while Haier and Hisense continue to look around to buy what is left of the gigantic European majap sector, i.e. almost nothing, apart from the German Teka-Kupperbusch and the Polish Amica which has tried to strengthen itself by buying the rights to the Fagor brand from the Spanish Fagor Coop. And apart from the dazzling Italian SMEG and the district of small and medium-sized luxury cooking companies which, boasting rich and growing exports, remain independent…
Across the ocean, the advance on the (strongly growing) luxury maiap market has been underway for some time, with Haier boasting General Electric and Fysher&Paykel, Samsung which bought the prestigious Dacor, LG which created a brand special Luxury, Signature, currently independent Viking such as Sub Zero-Wolf and the new Thor brand. In a market still well controlled by Whirlpool which boasts ultra-luxury brands and brands that cover all segments, it is the competitor to beat. However, what the Asian giants and the Chinese ones in particular lack is the lack of transparency on the numbers regarding sales, quotas, strategies and the "reluctance" to answer the normal questions of the press.
