How Chinese air con maker Gree conquered China and the world
2017-04-19 18:57 GMT+817343km to Beijing
EditorZhao Hong
With most of the world set to heat up in the coming months, air conditioner makers are ready for their busy season. After a bumper year in 2016, one company in particular can be excited about the summer.
A third of all air conditioners in service around the world are made by China’s Gree, which won the bidding to provide its products for the stadiums, athletes' village and media centers of the Olympic Games in Rio de Janeiro last year.
Now it is looking to send a chill through the headquarters of its competitors by consolidating this success, particularly in Brazil. Perennial hot weather has made the largest country in Latin America a hot pie in the eyes of global manufacturers of air conditioners.
Gree air conditioners for sale in Tianjin, China. /VCG Photo
Gree has pulled ahead of its competitors in the Brazilian market, with energy-efficient technology, updated products and omnipresent service.
"As one of the earliest Chinese home appliance producers going overseas, we have been in Brazil for 16 years, have a presence in 24 states in the country, and have over 300 dealers and more than 500 service providers," Xie Dongbo, general manager of Gree Brazil, told Xinhua.
Gree has topped the world for 12 years in terms of production and sales volumes of air conditioners, and has remained China's leading household electric appliances manufacturer for 14 years, with its revenues edging up to 15 billion US dollars in 2015, according to the company.
Gree manufacturing workshop in Guangdong Province, China. /VCG Photo
Could Brazil’s sluggish economy hamper Gree? Its executives are hoping that the Olympics seal of approval will put the company’s name front of mind for any Brazilian looking to stay cool.
To win the Games contract, it had to pass a government review for its production management, social responsibility and sustainable development.
"This was a fully dimensional examination of Gree," said Wang Weizhen, deputy general manager of Gree Brazil.
"According to the organizing committee, there were zero complaints about our service and products during the Rio Olympics, which meant that none of our machines broke down when the Games were held. We won the respect of the organizing committee," Wang added.
The Rio Games experience not only illustrated the company's success in supplying a major global event but Gree's way of doing business abroad.
"Besides technological advancement, localization is another recipe. We make money in Brazil, and we let the local economy and people benefit too," said Xie.
Based in Manaus, the heartland of Amazonia, Gree Brazil has become a major contributor to the local economy over the past 16 years.
"The job fulfills me," said Andreza Rocha, a local member of Gree Brazil staff. "I fit the cultural atmosphere of this enterprise. The senior managers from China are excellent, and I have learned a lot from them."