Electrical Equipment / Components & Telecoms

"After 26 years of working, there were almost no orders from European customers. Unexpectedly, since May this year, we have received many orders from European customers." In Zhejiang Yiwu International Trade City, an electric blanket operator sighed. According to the statistics of Yiwu Customs, from January to August, Yiwu exported 190 million yuan of thermal insulation products, including air conditioners, heat pumps, water heaters, and electric blankets, a year-on-year increase of 41.6%.

Since this year, the energy crisis in Europe has intensified. In the case of limited natural gas supply and soaring prices, local residents' demand for electric heating equipment has soared. China's air conditioners, heating fans, oil heaters and other heating equipment are favored because of their non installation, ease of movement, energy conservation and environmental protection, and affordable prices. The export of heating appliances in China has experienced a counter trend growth. First, the export of air source heat pump products broke out in the first half of the year, with a year-on-year growth of more than 50%. In the third quarter, the export of heating appliances to Germany, the Netherlands, Italy and other countries in Europe has increased significantly. After ensuring the demand of European and American consumers for refrigeration and storage products such as refrigerators during the epidemic, the satisfaction and support of China's household appliances to the world's heating demand have once again demonstrated China's backbone role in the global household appliances industry.

China's "heating solutions" are favored

The market demand of European and American countries has always been an important driving force for the export growth of China's household appliances industry. In 2022, with the housing economic dividend fading, overseas demand will gradually fall back, especially in the second half of the year, with inflation intensifying and inventories high, the pressure on China's home appliance export growth will gradually increase. According to customs data, from January to August this year, China's electricity export volume was the same as that of the same period last year. However, the export of heating appliances is growing against the trend.

According to customs data, in 2021, China's export of heating appliances to the world will reach a record 2.7 billion dollars. From January to August 2022, the scale of China's export of heating appliances to the world was 1.57 billion US dollars, an increase of 18.4% over the same period last year, including 25.3% to Europe, 23.9% and 21.3% to North America and Latin America. By category, 38.2% of the heating appliances at the outlet are other heaters, 28.2% are warm fans, 13.5% are other convection space heaters, 13% are radiation heaters, and 6.4% are liquid filled (traditional oil).

Zhou Nan, secretary-general of Household Appliances Branch of China Chamber of Commerce for Import and Export of Mechanical and Electrical Products, said that, on the whole, this year's export growth to Europe was mainly concentrated in Germany, the Netherlands, Italy, Spain and Belgium, which had a relatively large impact on the energy crisis. The main products of growth were fan type electric and pneumatic space heaters (for example, the export of warm fans to Europe from January to August increased by 49.5% year on year) Liquid filled electric space heaters (for example, the export of oil to Europe from January to August increased by 27.7% on a year-on-year basis) and radiant space heaters (for example, the export of infrared heating tubes to Europe from January to August increased by 7.2% on a year-on-year basis). These heating equipment do not need to be installed and are easy to move at affordable prices.

With the launch of the EU's energy grid digitization plan, EU countries will install 10 million heat pumps in the next five years, which again highlights the importance of heat pump installation and popularization. As an important strategic layout of European electrification, heat pump has a clear trend of long-term penetration increase. Midea Group, Haier Zhijia, Gree Electric Appliances, Hisense Home Appliances and other enterprises in China all have layout in the heat pump field. Yang Run, the person in charge of industrial online heat pump products, said in an interview with China Electronics News that in August 2022, the domestic sales volume of the air source heat pump market was 1.296 billion yuan, with a year-on-year growth of 5.7%, and the export volume was 485 million yuan, with a year-on-year growth of 60.1%. From the perspective of the overall domestic and foreign market, the export amount is still eye-catching.

Highlight the global backbone role of China's home appliance industry

The output and trade volume of China's household electrical appliances industry have ranked first in the world for many years in a row. Chinese household electrical appliances enterprises rely on their own industrial chain advantages. According to customs data, the competitiveness of products and brands in the global household electrical appliances market under the epidemic situation has increased rather than decreased. The sharp increase in the export of heating equipment to Europe is just a microcosm.

At present, China's household electrical appliances exported to Europe have maintained high standards and specifications, and have obtained the European CE certification. Most of the products have also obtained the GS certification with more strict safety regulations. In addition, they also comply with the European Union REACH and other environmental protection directives. Midea Group actively responded to the EU's "2050 carbon neutral" plan, increased efforts to promote the upgrading of heat pump products, and built a product matrix of heat pump water heaters, swimming pool machine heat pumps, commercial heat pumps, and space heating and cooling and domestic hot water. Its M thermal series products have the highest energy efficiency level (A+++at 35 ℃), and can also provide hot water up to 65 ℃ at an extremely low temperature of - 25 ℃. According to customs data, in the first half of 2022, the export volume of Midea heat pump products increased by more than 200% year on year, ranking first in China's heat pump industry.

On September 2, Hisense Home Appliances said on the investor interaction platform that Hisense brand central air conditioners, the company's product, had newly opened up the overseas heating product business and water machine business, seized the European market opportunity, and simultaneously listed domestic air source heat pumps in Italy, Poland, Spain, Germany, and France, and increased its footprint to seize the middle and high-end heating market in Europe.

With their own advantages, Chinese household appliances enterprises have ensured the demand of European and American consumers for refrigeration storage products such as refrigerators during the epidemic. Zhou Nan pointed out that this heating appliance once again proved that the competitiveness of China's home appliance industry in the world market is unshakable, and also showed that China plays an irreplaceable role in the global economy. China uses efficient production and trade to meet various needs of the world in a timely manner.

However, in the face of the hot sales of heating appliances in European countries, industry insiders have said that enterprises need to be rational. Zhou Nan stressed that the high demand for heating appliances will eventually return to rationality with the easing of European energy problems. What enterprises should do is to strictly control the quality and safety of their products, avoid vicious price competition, and not export non-standard products in order to grab orders and depress prices. At the same time, we should take a long-term view. We should not only see short-term business opportunities, but also see the long-term impact of the European energy crisis. The demand for green energy-saving products in Europe and the United States will increase significantly. China's home appliance industry should guide the export of low-carbon energy-saving products to accelerate the transformation.

The relevant person in charge of the China Household Appliance Association also pointed out that, in addition to the strong demand for heating appliances, the market space of energy-efficient and low-carbon appliances in Europe is expected to be further expanded under the background of national energy conservation and energy transformation.