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Since the beginning of summer this year, there have been frequent high temperature warnings in many parts of the country. According to a report from the World Meteorological Organization, with climate change and the return of the El Ni ñ o phenomenon, the world's highest temperature record may be set this year or next year. With the heatwave hitting, sales of cooling appliances represented by air conditioners and fans have surged.

Short term weather factors and shopping festival hotspots have injected new growth momentum into the household appliance industry. However, despite this occasional opportunity, household appliance enterprises are also gradually exploring certain factors that can achieve long-term growth. According to import and export data, such as comfort and design in products and overseas expansion in Marketing channel.

According to the 2022 annual report of Jinhai High Tech, a leading domestic air filtration material manufacturer, based on a 10-year update cycle, assuming that the air conditioning penetration rate in major countries in South and Southeast Asia reaches the current rural level in China, the corresponding annual demand exceeds 50 million units. If the penetration rate can reach the overall level of Chinese residents, the corresponding annual demand exceeds 80 million units, and the overall market prospects are broad, It's equivalent to recreating a Chinese market.

In addition, according to import and export data, from the perspective of industrial synergy, Southeast Asian countries have gradually eliminated control and promoted economic strategies, providing a good foundation for Chinese enterprises to export to the Southeast Asian market. More importantly, with the official implementation of RCEP, more than 90% of goods trade within the region will ultimately achieve zero tariffs. The reduction in trade costs is expected to enhance the synergy between ASEAN and China, which in turn will bring a large number of import and export opportunities.

According to import and export data, it can be seen from the Canton Fair in April this year that more and more Chinese home appliance companies are targeting the Southeast Asian market. For example, Haier Zhijia plans to build hundreds of brand experience stores in Southeast Asia by 2023, and TCL expands its capacity in Southeast Asia and South America. According to import and export data, the production of air conditioning enterprises in June this year was 17.78 million units, a year-on-year increase of 38.6%. Among them, export production was 6.01 million units, a year-on-year increase of 29.9%.

The export of Chinese home appliances also injects new vitality into upstream component manufacturers. In recent years, overseas revenue of domestic home appliance component segment companies such as Sanhua Intelligent Control, Haili Co., Ltd., and Xingshuaer has shown a significant upward trend. Not long ago, Jinhai High tech stated in the interactive section of the performance briefing that "due to the rapid growth of overseas markets in recent years, the company has actively expanded its overseas market business and continuously improved its profitability." According to import and export data, Jinhai High tech has reached cooperation with Japanese air conditioning enterprises since 2000. The company has now established research and development production bases and marketing centers in Thailand and Japan, At the same time, the sales network covers multiple countries and regions around the world.

Nowadays, China's home appliance production and manufacturing have become an indispensable and important part of the global supply chain. The production and trade volume of China's home appliance industry have consistently ranked first in the world for many years. Relevant enterprises in various links of the home appliance industry chain have accelerated their pace of going overseas, and it is expected to continuously open up new prospects for the sustained high-quality development of the entire industry.