Chinese home appliance brands are accelerating their presence in Africa. Africa’s population exceeds 1 billion and is expected to double around 2050. The market growth prospects are very promising. In recent years, the African economy has entered a stage of accelerated development. After basically solving food and clothing, the pursuit of material is increasingly expanding. According to statistics, the current African home appliance market is basically growing at a double-digit rate every year. Since most parts of Africa are in the tropics, it is hot and rainy all the year round, so people’s demand for air conditioners and refrigerators is obvious, especially in some economically developed countries and cities, many commercial places have begun to install air conditioners.
In fact, the demand for home appliances in Africa is still growing rapidly every year. However, many African countries have weak industrial foundations, unbalanced industry development, insufficient self-sufficiency in home appliances, and low supporting capabilities. Most equipment, components and raw materials need to be imported. And China’s home appliance industry is relatively mature. Chinese home appliances are cheap and good, and there is a big market in Africa. Chinese home appliance companies can definitely make a difference in Africa.
Coincidentally, UnitedStar, as one of the Chinese home appliance companies that are deeply involved in Africa, is centered in Nigeria. UnitedStar’s fans are recognized by the market for their differentiated fan products produced in Nigeria.
Among them, in Nigeria, UnitedStar’s solar fans and rechargeable fans have greatly improved the value of users.
In view of the tariff increase of African products and the rise of sea freight, the tariff of products has increased from 0 to 25%, and the unit price of products reaching to clients needed to be increased by 30%. In order to reduce the transportation cost, reduce the price of products, and provide customers with low price and high quality electric fans, UnitedStar builds factory in Tunis.
Chinese enterprises are full of confidence in the future development of Chinese home appliances in Africa. Different from the past, Chinese enterprises entering the African market have changed from the original trade export type to production layout and localized production, which is also the characteristic of Chinese enterprises’ layout in other emerging markets. “Building factories in Africa and improving industrial chain production” has become a plan for more home appliance companies.
The hidden opportunities in Africa are becoming a hot spot for Chinese home appliance companies to invest and start their businesses. At present, the home appliance markets in Egypt, South Africa, Central Africa, Nigeria, Algeria, Liberia and other African countries have a good development foundation, and have formed a certain scale and development environment. import.
In 2017, Nigeria imported $479 million of household appliances. Among them, 262 million US dollars were imported from China, accounting for 55.12%. Among them, air conditioners, refrigerators, washing machines, small appliances and televisions all account for more than 60% of Nigeria’s total imports, and Chinese home appliances are very popular locally.
