Development track

Chigo has developed its own vision of globalization since its founding. The company's founder, Li Xinghao, called on all staff to "produce the best air conditioners in the world" by learning from countries with sophisticated household appliance technology.

In 1998, only four years after it was founded, the company began exporting its products internationally. Zhang Yongqing, Deputy General Manager of Chigo's Overseas Sales Division, recalled that at that time, Chigo was neither authorized to import and export goods, nor qualified to participate in the China Import and Export Fair, or the Canton Fair, which posed big challenges for Chigo's move to trade internationally.

The air conditioner maker's exports doubled every year from 1998 to 2003, thanks to vigorous market demand, after it officially gained import and export rights and was allowed to participate in the Canton Fair. In the years since that time, the firm has established successful long-term cooperative relations with many international corporations in the ventilation and air-conditioning industry, including Vaillant, Lennox and Carrier. So far, the Chigo brand has been registered in more than 200 countries and regions worldwide.

Chigo's President, Zheng Zuyi, has always emphasized that to succeed in international business, the company needs to create a localized brand name. "We have to make customers feel that Chigo is a local brand instead of an imported Chinese brand," he said.

Zheng admitted that the company still faces stiff competition in mature markets like Europe and the United States. Top brands from Japan and South Korea are major air conditioner sellers there. Therefore, Chigo has devoted far more time and effort to emerging markets, particularly in African nations.

International sales accounted for the majority of Chigo's total revenue in 2012. Its overseas sales last year increased by 5.5 percent year on year to 3.9 billion yuan ($620 million). During this time, the Asian and African markets enjoyed rapid growth, according to the company's data. 

Like numerous Chinese manufacturers, Chigo initially didn't have a strong international brand, and had to work for other firms as an original equipment manufacturer (OEMs). Zhang Yongqing emphasized that the company now boosts its presence on the international market by focusing on brand building and upgrading its technology.

"Chinese companies should bring our own brands and technologies overseas to boost competition in the global market," Zhang said, adding that branding campaigns will be Chigo's key tactic in developing new markets.

Chigo currently sells its products under its own brand name in Nigeria, Myanmar and Algeria and other countries.

Strict standards

Chigo's strict product quality requirements are universally acclaimed in the industry.

All products designed and manufactured by Chigo must undergo more than 200 quality and safety tests before they are put on the market.

The company's superior product quality and leading technology have won the trust of a wide range of customers, allowing it to enter the top ranks of the industry in terms of output and sales.

Chigo was again granted a national exemption from export inspection certification last October, which has improved the brand's reputation and credibility on the overseas market.

This definitely helps build consumers' confidence in the brand's future marketing prospects, said a dealer for Chigo in America.

Zheng Zuyi said that providing high-quality after-sales service has also helped his company stay on solid footing in foreign markets. Chigo's after-sales team in Nigeria, consisting of 30 professionals, has grown to be the largest and most professional team in the local market.

"The successful operation of the project in Nigeria has significantly improved Chigo's brand reputation and credibility in the African market, and will accelerate the internationalization process," said Liao Yu. CA