Household appliance makers accelerate overseas expansion plans

Chinese small home appliance makers are ramping up efforts to expand their footprint in emerging overseas markets and pooling more resources into localized research and development as part of a broader push to bolster global sales and enhance international influence, industry experts said.

They added that an increasing number of homegrown small appliances, such as robotic vacuum cleaners, air fryers and coffee makers, are gaining popularity among overseas consumers, thanks to their creative designs, simple-to-use features and online promotional events.

Chinese intelligent home appliance manufacturer Dreame Technology is accelerating steps to make inroads into overseas markets and is investing heavily in research and development, while making technological innovation based on user demand.

Currently, the company's products have been sold in more than 100 countries and regions, including Europe, North America, Southeast Asia, East Asia, the Middle East, Africa and South America. Revenue from international markets accounted for 65 percent of its total revenue in 2024.

Global sales of the company's robotic vacuum cleaners and floor-cleaning machines increased by 178 percent and 100 percent year-on-year respectively from January to May, ranking first in 18 countries and regions around the world.

Its gross merchandise value in Southeast Asia soared more than 150 percent year-on-year in the first half of 2024, while sales in Japan, South Korea and Australia increased 292 percent year-on-year during this period.

The company is stepping up localization efforts and has launched tailor-made products in accordance with usage habits and application scenarios in different countries, expanded both online and offline channels — including emerging e-commerce channels — and formulated differentiated marketing strategies.

Yu Hao, founder and CEO of Dreame Technology, emphasized the significance of increasing investment in supply chain systems, building independent production capacity covering the entire industrial chain and establishing global retail channels. Yu said the company will take active steps to expand into overseas markets and recruit high-quality talent worldwide.

Bear Electric Appliance Co Ltd, a maker of small home appliances based in Foshan, Guangdong province, said its sales revenue from overseas markets reached 668 million yuan ($93.06 million) in 2024, with overseas customers mainly coming from Japan, South Korea, Southeast Asia, Europe and North America.

Li Yifeng, chairman and general manager of Bear Electric Appliance, said the company will continue to build brand recognition overseas, intensify promotional efforts, expand retail channels and bolster global operational capacity.

Li said the overseas business mainly focused on the original design manufacturer model, but now it is beefing up efforts to promote its self-owned brands to go global and develop the cross-border e-commerce business.

The company, founded in 2006, has developed and produced a series of creative electrical appliances, including yogurt makers, egg boilers, crock pots and steamers to entice young consumers.

"Expanding into overseas markets could not only relieve the pressure of high inventories in the domestic market, but also increase the brand awareness and international influence of Chinese small home appliance brands," said Liu Jiyuan, deputy head of the research innovation department of Beijing-based market consultancy All View Cloud.

Liu said globalization is both an opportunity and a challenge for Chinese home appliance manufacturers, adding this will promote the sector's high-quality transformation and upgrading.

Guangdong Xinbao Electrical Appliances Holdings Co Ltd said due to tariff increases from the United States, the company will actively explore emerging markets such as Europe and Southeast Asia, increase investment in the research and development of high value-added products, and strengthen the construction of overseas manufacturing bases.

The Foshan, Guangdong province-based company specializes in designing and manufacturing small home appliances such as electric kettles, blenders, toasters and coffee makers.

Overseas consumers are paying greater attention to quality of life, personal health and food safety, and showing increasing demand for Chinese-made small household appliances with high cost-effectiveness, said Liu Buchen, an independent researcher tracking the home appliance sector.

Chinese home appliance makers should attach great importance to products' R&D, and invest more in technological innovation in order to enhance the core competitiveness of enterprises on the global stage, he added.