Hisense helps African partners with Export Strategy Conference

Ms Nomfuneko Majaja, DTI's Chief Director for Advanced Manufacturing addressed delegates yesterday about the importance of exporting locally manufactured products to Africa for job creation in South Africa.

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As part of the company's commitment to Africa, Hisense South Africa played host to a number of international delegates and government officials at a two-day event held in Cape Town this week. The Hisense Export Strategy Conference saw partners from Africa, the Middle East and South America visit the Mother City to discuss trade relations and tour Hisense's factory in Atlantis.

For Hisense, the conference was more than an exercise to show off local operations. In the past, some manufacturers treated Africa as a dumping ground for inferior quality electronic goods and old stock. However, Hisense and the China-Africa Development Fund (CAD Fund) realised the potential of the manufacturing sector and jointly invested in the South African Home Appliance Industrial Park. With its Atlantis factory employing over 600 workers, and established distribution channels to 14 African countries, Hisense has already demonstrated a strong commitment to the continent. In fact, the second day of the conference was devoted to listening to the challenges faced by African trade partners, as well as possible solutions proposed.

"It is true that for Hisense, Africa is a key market, and with a local factory providing quick turnaround times for orders, South Africa provides the perfect platform for distribution," said Keith Pereira, Hisense South Africa Export Manager. "This is why this 'unconventional' conference is so vital, since for Hisense it's not just about pushing into Africa. It allows us to listen to what our trading partners are saying about their respective markets and respond to their concerns," Pereira noted.

Delegates experiencing the Hisense product available for export from SA.

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African countries belonging to the Southern African Development Community (SADC), benefit from trading through Hisense South Africa by enjoying reduced trade rates. African trade partners ordering through South Africa can also expect a much faster turnaround time in the delivery of goods, while containers can be mixed with different types of electronics, which is not possible otherwise. Furthermore, Hisense partners benefit through marketing support via the South African office, with the service department also available on request.

Joining the Export Strategy Conference were delegates from the South African Department of Trade and Industry, and the Consulate-General of the People's Republic of China. Alex Zhu, Deputy General Manager, Hisense International, addressed the delegates by expanding about the company's international vision, while Youbo Li, General Manager of Hisense South Africa, discussed the company's performance locally. "Growth is not an easy task and it takes dedication to achieve such rapid results. This is why we want to not only highlight Hisense's achievements, but also help share our knowledge and assist with growth in other markets," Li concluded.

Hisense Fast Facts

@HisenseSA

Conference delegates toured Hisense SA's factory in Atlantis, Cape Town where over 600 local staff are employed. Photographer credit: Nardus Engelbrecht

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* Hisense employs over 75 000 staff worldwide.
* Hisense products are sold in 130 countries worldwide.
* Hisense has production facilities in China, South Africa, Algeria, Egypt and Mexico.
* Hisense is one of the largest television manufacturers in the world with over 10 million televisions produced each year.
* Hisense entered the South African market in 1996.
* Hisense SA exports to 14 African countries and aims to reach more African markets with their current export strategy.
* Of the Hisense products manufactured in SA, 40% are sold locally and the rest are exported to other African countries.
* Hisense SA's TV category doubled between 2012 to 2014 - its market share grew from 9% to 18%.
* Hisense SA's refrigeration category doubled between 2012 to 2014 - its market share grew from 10% to 20%.
* On sales volumes, Hisense SA was positioning as the number two in both the TV and refrigeration categories in 2014*.
* By the end of 2016 Hisense SA aims to be one of the top three in terms of market share in the TV and refrigeration categories in all the countries they export to.
* Hisense SA's sales target for 2015 is $20 million, an estimated growth of 25%.
* Hisense SA employs over 600 locals at their production facility in Atlantis, Cape Town.
* Hisense SA manufactures 1 200 fridges per day.
* Hisense SA manufactures 1 700 TVs per day.
* Hisense SA aims to produce 270 000 units of TVs and 210 000 units of fridges by the end of 2015 at their factory in Atlantis, Cape Town.

*GFK stats