The ancient lands of the Middle East have emerged as a new frontier for overseas expansion by Chinese appliance companies, showcasing their unique charm and potential. Leading players like Hisense, Haier, TCL, and Midea are directing their attention towards this prosperous market, achieving significant growth and influence through localized strategies, brand strengthening efforts, and continuous innovation.
1. Hisense Sustains Remarkable Growth in the Middle East and Africa
In recent years, the Middle East and Africa have rapidly become hotspots for Chinese appliance companies’ overseas expansion. Among them, Hisense, as one of the earliest entrants, has achieved remarkable results in this promising territory. From 2012 to 2021, Hisense’s revenue in the Middle East and Africa grew at an annual average rate of 25.9%, making it one of the fastest-growing overseas markets for the brand. This growth trend was particularly evident from 2017 to 2021, with sales revenue soaring from $663 million to $1.28 billion, representing an annual average growth rate of 17.88%. Hisense’s success stems from its precise understanding of market demand and sustained product innovation. Addressing the localized demand of Middle Eastern and African consumers for large-screen high-definition displays, Hisense introduced flagship products like UELD picture quality flagship products and laser TVs. These products not only offer ultimate audiovisual experiences but also garnered widespread acclaim among the region’s high-end consumers, particularly the laser TVs which have become popular products in the local market. In addition to product innovation, Hisense also focuses on improving its channels and after-sales service systems. In the UAE market, Hisense air conditioners have secured the second position in the industry, climbing three spots since 2019. This achievement is attributed to Hisense’s commitment to high-quality technology and continuous improvement of its channels and after-sales systems. Meanwhile, Hisense has established 25 research and development institutions, 34 industrial parks, and production bases globally, adhering to the strategy of research, production, and sales localization. To further accelerate its global localization layout, Hisense unveiled its Dubai R&D Center in November 2023. Leveraging Hisense’s global R&D resources, this center will conduct in-depth research on local consumption demands in the Middle East and Africa, focusing on developing high-quality products that are comfortable, intelligent, and environmentally friendly. Additionally, the center will provide timely technical and product training, as well as pre-sales and after-sales technical support to partners.
2. Haier Establishes Strong Presence in the Middle East Market through Localization and Innovation
As a leading Chinese appliance giant, Haier has demonstrated strong influence and market leadership in the Middle East market in recent years, particularly in core categories like refrigerators, washing machines, and air conditioners. Behind this achievement lies Haier’s efforts in localized production, brand awareness enhancement, and continuous innovation. Firstly, Haier has successfully implemented a localized strategy in the Middle East market. By establishing production facilities such as the Egypt Ecological Garden, local manufacturing not only caters to the preferences and cultural differences of local consumers but also reduces tariffs and transportation costs, improving market responsiveness. This localization production model allows Haier to flexibly meet the demands of the Middle Eastern market, further consolidating its market leadership. For instance, in response to the extremely high temperatures in the Middle East, Haier innovatively developed air conditioning products equipped with cool core bridge technology, maintaining 100% cooling capacity even at 55°C and stable operation even at 68°C. This innovative solution tailored to specific market demands gives Haier products a significant competitive advantage in the Middle East market. Secondly, Haier has extensive brand awareness in the Middle East region. This is due to its continuous marketing efforts and focus on customer service. By establishing brand experience stores in key markets in the Middle East and North Africa, Haier has brought itself closer to consumers, enhancing brand reputation. This consumer-friendly brand image has earned Haier trust and loyalty in the Middle East market. During the pandemic, Haier Biomedical developed solar direct-drive refrigeration technology series vaccine refrigerators, addressing vaccine storage safety issues in North Africa due to power shortages and gaining favor among local consumers. Even in a high-temperature environment of 43°C, the temperature inside the box can be maintained below 8°C for up to 120 hours, far exceeding the World Health Organization’s requirement to maintain the refrigeration temperature for 72 hours.
3. TCL Expands into the Middle East and North Africa Market with Smart Technology
As globalization accelerates, Chinese appliance giant TCL is speeding up its layout in the Middle East and North Africa (MENA) market. Recent industry data shows that TCL’s market share in smart TVs in the region continues to grow, with its brand influence steadily increasing. In recent years, there has been a surge in demand for high-tech smart products in the MENA region. TCL seized this market opportunity, successfully entering the mainstream consumer market with its innovative product line and precise market strategies. Particularly in the smart TV field, TCL’s products equipped with 4K ultra-high definition, HDR technology, and smart interconnection functions have been well received by consumers. For example, in 2023, TCL launched the latest generation of Mini LED and QLED TVs in the MENA market, allowing local consumers to access cutting-edge consumer electronics technology. According to the latest report from market research institutions, TCL’s smart TV shipments in the MENA region have grown significantly year-on-year, and its market share has steadily increased. As early as the third quarter of 2018, TCL’s smart TV shipments in the Middle East and North Africa region reached approximately 100,000 units, with a market share of 10%. This achievement is due to TCL’s in-depth understanding of local market consumption habits and the successful implementation of product localization strategies.
4. Midea’s Deep Layout and Prospects in the Middle East Market
Midea, as a leader in Chinese appliance manufacturing, has demonstrated strong strength and influence in the Middle East market in recent years, especially in the air conditioning and washing machine sectors. Through deep localization production, precise market positioning, and continuous technological innovation, Midea has successfully established a solid market position in the region. Firstly, in terms of market share, Midea’s performance in the Middle East region is particularly outstanding. Taking its self-owned brands such as Midea and Clivet as examples, these brands account for more than 80% of the market share in the central air conditioning field in the Middle East, undoubtedly becoming the leader in the region’s air conditioning market. This dominant position is attributed to Midea’s profound understanding of the Middle East market characteristics and precise grasp. For example, in response to the hot climate and urgent demand for high-energy efficiency in the Middle East, Midea focused on research and development, launching air conditioning products with innovative features such as energy-saving frequency conversion technology and intelligent control, which were well received by local consumers. Secondly, Midea’s localized production strategy in the Middle East market has also achieved significant results. By investing in the establishment of production facilities in Egypt and other places, including refrigerator, washing machine, and water heater factories, Midea not only meets the local market demand but also greatly reduces dependence on imports. This localized production model not only shortens the supply cycle and reduces costs but also enables Midea to respond to market changes more quickly and meet the diverse needs of consumers.
In conclusion, the Middle East has become a battleground for Chinese appliance giants