The crisis starts from China with the Covid19 pandemic, but the big Chinese Hisense (revenue among over $18 billion, gigantic decades-long profits) licensed in Europe. And it's about 2.200 employees, victims of the dramatic collapse in sales caused by the pandemic. Third world producer of tv and fridge, had acquired in May 2018 the first Slovenian manufacturer of household appliances, Gorenje, the historic European brand of majaps, which was in dire straits after Panasonic decided to sell its 12,7 percent stake, held since 2013.
Of the 2.200 jobs, well 1.000 should be precisely those of Gorenje, 700 in the manufacturing sector, 300 in the managerial sector. Hisense has declared, in fact, that in the first three months of the year the orders to the factories in Slovenia, in Serbia and in the Czech Republic have recorded in Europe a fall of a third and even a collapse of two thirds in April which will be followed by a - 25 percent for May and June.
Hisense's staff reduction will take place also in the European sales offices. An official statement from Hisense Europe communicated that all Group companies will work towards minimize layoffs using soft layoff methods, including the divestment in sectors that are not strictly part of industrial activities.
But if the consumer crisis continues at this pace, Hisense will certainly not be the only Chinese giant to take measures to contain losses on European markets, which are destined to grow anyway. The big Chinese like Hisense and Haier for some years now, they have adopted global market penetration strategies through the acquisition of illustrious – and decadent – American, European and Japanese historic brands. Because the Chinese giants, after having been suppliers of entry level products for European and American manufacturers and distribution groups for a long time, when they decided to enter world markets directly, remained inexorably stuck to the lowest price ranges.
He is alone the acquisition of Western brands and companies it has allowed them to control growing shares of the medium-high price ranges. So Hisense had managed to win Gorenje for over 300 million euros, stealing it from its "national" competitors, after acquiring Sharp USA and Toshiba (TV division) and after conquering the African market for consumer durables. And together with the brands, the Chinese also targeted factories for two reasons: to serve local markets quickly and with great flexibility and to exclude the costs of very lengthy logistics which can become very expensive for the transport of large household appliances.
But there is also a reason, the one linked to the progressive saturation of Chinese markets, where decades of development and economic growth have unleashed fierce competition between the major appliance manufacturers. Years ago they looked with extraordinary interest at the rich western markets. And best of all, just when they were devouring sales shares from Korean competitors, the coronavirus, Chinese just like them, arrived like a bolt of lightning.
