China’s Midea eyes bigger global market share after US$4.6 billion IPO
Appliance maker looks at Saudi Arabia, Brazil and Africa as it aims to expand its international sales network by a third
Midea Group, the world’s largest maker of white goods by sales, is eyeing significant global expansion of its sales network to encompass 40 countries by 2025.
The company, which gets almost half of its revenue from overseas markets, relies on outside retail operators in some regions. But it plans to expand its global operations and do a “better job” with its own retail network, particularly in emerging markets where the “growth potential is large”.
“Currently, we have our own sales subsidiaries and organisations in about 30 countries worldwide,” Fu said during a press tour on Thursday. “In the future, we will expand to more than 40.”
Midea also plans to expand its global manufacturing capabilities, establish more research and development (R&D) centres, and boost its presence in the United States, Fu said.
Revenue rose 10.3 per cent from a year earlier to 218.1 billion yuan (US31 billion) in the first half of this year, while earnings improved 14 per cent to 20.8 billion yuan.
Overseas revenue increased by 13 per cent from a year earlier, accounting for 42 per cent of the total, while mainland revenue gained by 8.4 per cent.
