Hisense South Africa Industrial Park: 11 Years of Cultivation, Fostering the Rise of Chinese Brands in Africa

Hisense South Africa Industrial Park: 11 Years of Cultivation, Fostering the Rise of Chinese Brands in AfricaOn June 6, 2013, the Hisense South Africa Industrial Park officially began production. This industrial park, spanning over 100,000 square meters, embodied the ambitious vision of Chinese brands entering the African market

Hisense South Africa Industrial Park: 11 Years of Cultivation, Fostering the Rise of Chinese Brands in Africa

On June 6, 2013, the Hisense South Africa Industrial Park officially began production. This industrial park, spanning over 100,000 square meters, embodied the ambitious vision of Chinese brands entering the African market. Eleven years later, this park has become a significant representative project of the "Belt and Road" initiative co-built by China and South Africa. It has delivered an impressive track record: annual production capacity has increased from 550,000 units to 1.5 million units, 13 supporting enterprises have been established, and over 1,000 direct jobs and 5,000 indirect jobs have been created locally. Products are even exported to Europe, solidifying the park as a symbol of the steady growth of Chinese brands in Africa.

Liu Wei, General Manager of Hisense South Africa, has personally witnessed the establishment and development of this industrial park. He shared his journey over the past 11 years, narrating the compelling story of Chinese brands continuously expanding in the South African market.

Choosing Cape Town: Embracing Dreams and Aspirations

Liu Wei recalled that the decision to locate the industrial park in Cape Town was made after extensive research. Cape Town harbor, one of South Africa's major ports, is rich in resources and serves as a hub for direct flights to South Africa and West Africa. The Atlantis region in Cape Town is a traditional industrial area in South Africa with abundant labor resources. More importantly, the local government strongly supported the investment project, offering tax incentives.

"I remember when the news spread, many locals came to apply," Liu Wei shared. "For 30 positions, over 200 people applied for interviews." Among them, a local youth named Marlon Jacobs made a lasting impression. This young man, barely 20 years old, had only completed junior high school and had never seen a welding torch before, but he was deeply interested in the welding position. During the three months dedicated to equipment installation and debugging, Hisense brought in 30 Chinese employees from China to provide hands-on training, helping them master fundamental theory and practical skills.

Eleven years have passed, and the park has created over 1,000 direct jobs and 5,000 indirect jobs locally. Approximately 70% of management positions are held by local employees. Like Jacobs, these employees now have stable incomes and are enjoying increasingly better lives.

Strengthening the Chain: Driving Upstream and Downstream Development

After the industrial park was established, insufficient industrial support quickly emerged as a new challenge. Liu Wei understood that to gain a foothold in overseas markets, you need to not only establish your own roots but also foster the development of upstream and downstream industries to continuously enhance your industrial chain competitiveness.

Take refrigerator liner production as an example. Domestic industrial parks use lamination technology, allowing for same-day delivery. In South Africa, manufacturing companies still rely on traditional processes, resulting in a delivery cycle of up to three days, directly impacting production efficiency.

To address this issue, Hisense actively introduced lamination technology principles to local companies, helping them master the new process. After persistent efforts, in April of this year, a supporting packaging company successfully adopted lamination technology, becoming the first company in South Africa to use this technology.

Besides technological advancements, Hisense has also actively assisted local companies in expanding their business operations. One small company headquartered in Durban, previously solely supplying foam boxes to fishery processing companies, had only 16 employees and 3 pieces of equipment. After becoming a Hisense supplier, their business stabilized and production scale expanded. In 2015, Hisense orders accounted for over 70% of their overall business volume. The company moved its headquarters from Durban to Cape Town and currently employs 150 people with 16 pieces of equipment.

By August of this year, Hisense had integrated 13 companies into the supporting industrial chain, driving them to adopt new technologies, processes, and equipment. Over the past 11 years, localized manufacturing has pushed down park costs and increased efficiency. Annual production capacity has grown from 550,000 units in 2013 to 1.5 million units, significantly improving production efficiency and increasing revenue fivefold.

Expanding Markets: Winning Consumer Recognition with Quality Products

On February 27, 2022, the ship's horn blared in Cape Town harbor as the first batch of refrigerators bound for the UK market were shipped from the park. Upon arrival, they were officially launched in the UK. The export of "Made in South Africa, Chinese Brand" appliances to the European market signifies a new level of quality control in production at African factories under collaborative mechanisms and also underscores the rising influence of Chinese brands.

Breaking into a new market is never easy. When Hisense first entered the South African market, it faced numerous competitors, including brands from Japan, Korea, and Europe, which had already established deep roots in the local market and spent significantly more on marketing than Hisense.

To win the market competition, Hisense decided to let its quality products speak for themselves, highlighting its differentiated competitive advantage. They closely observed the needs of local users and discovered that due to the hot weather, people in the region generally liked to drink cold beverages. Therefore, Hisense incorporated a water dispenser in the refrigerator's refrigerator section, allowing users to dispense ice water automatically without opening the refrigerator door. This product was well-received by consumers, became a bestseller in South Africa, and further opened up the market.

Targeted research and development based on local needs proved to be a key factor in Hisense's success in the South African market. They have developed various models to meet the needs of consumers in different countries and continuously improved laboratory research and development capabilities, innovating production processes. Simultaneously, they conduct daily sampling audits of product appearance, performance, and monthly testing of energy consumption, freezing capacity, etc., to ensure that products meet local market standards and consumer requirements.

Growing Together: Building a Brighter Future Hand in Hand

The success of the Hisense South Africa Industrial Park is inseparable from cooperation with local businesses and governments. Liu Wei stated that they have always adhered to the principle of mutual benefit and win-win cooperation, growing alongside their partners.

"There is a proverb in Africa: 'A lone traveler goes fast, but those who travel together go far,'" Liu Wei said. "We are constantly growing through cooperation, and our understanding of this proverb deepens."

The success of the Hisense South Africa Industrial Park is a microcosm of Chinese companies achieving success in the African market. It has not only brought economic development and job opportunities to the local area but also established a positive image for Chinese brands, showcasing the competitive strength of Chinese companies in the international market. In the future, Hisense will continue to cultivate the African market, working hand in hand with its partners to build a brighter future.

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