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Chigo air conditioners in demand in Africa (XINHUA) |
Charles Dickens wrote in the opening lines of A Tale of Two Cities, "It was the spring of hope; it was the winter of despair." Last winter was truly a winter of despair for China's air conditioning market, as the industry's sales fell sharply in 2012. But Zheng Zuyi, President of Chigo Air Conditioning Co., and his company are enjoying a spring of hope.
Even under difficult market conditions, Chigo's exports have maintained double-digit growth from month to month. This growth was largely supported by the company's strong performance in emerging markets such as the Asian and African markets. Over the first half of 2012, the company posted growth rates of 30.4 percent and 284.6 percent in each of those markets, respectively, according to Chigo's financial reports.
How has Chigo achieved such good results in difficult markets? Experts believe that the company's global marketing strategy is effective because it pulls at the heartstrings of buyers, includes a large global sales network that covers more than 200 countries and regions and continues to expand at steady pace. All is based on a long-standing reputation for quality products, as well as research and development.
Global strategy
Chigo focuses its overseas development efforts on emerging markets, in particular, those in Africa. The Guangdong-based air conditioner maker started building its first overseas plant in Nigeria in 2005. The plant produces 300,000 air conditioners annually.
Nigeria, the most populous country in Africa, has great potential. By virtue of its location, the country enjoys a warm tropical climate, and its people require air conditioners to cope with warm temperatures. By the end of 2008, Chigo was one of the top three companies in terms of market share in Nigeria's air conditioner market.
"Chigo is a strong manufacturer and has an excellent R&D team, while our Nigerian partner is more familiar with local market conditions. These strengths complement each other perfectly," said Liao Yu, Executive Deputy General Manager of Chigo's Overseas Sales Division.
As a Chinese manufacturer, Chigo wants to be presented as a real Chinese brand in Africa. "We are not only bringing our products to the overseas market, but also exporting our technology and brand," he added.
Over the past few years, Chigo has launched stringent product quality control initiatives, and worked to communicate appropriate brand messages to successfully build its brand. The company promotes itself through a variety of media outlets, including TV, magazine, radio, outdoor advertising as well as holding large-scale events and expanding its franchise.
"We believe that advertising allows local consumers to be able to hear about or see our brand. This has positive effects in terms of sales and user feedback," Liao added.
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