Source: CHEAA-run China Appliances
Based near the port of Kobe in Japan, Aux’s first overseas R&D center officially went into operation on March 26, 2019. Within Japan’s air conditioner industrial cluster, the newly founded center bears the strategic mission of the fast-growing company, which is, making Aux a global brand.
The rising star of Chinese air conditioner industry attaches great importance to this momentous event. Zheng Jianjiang, Chairman of the board of Aux, says, “The founding of our Japan-based R&D center marks a critical step of our global expansion.”
Continuously breaking new ground in air conditioner market, Aux has been actively transforming its technologies, manufacturing, distribution channels and brand building. In the past 2018, Aux posted 86 billion RMB in revenue, a year-on-year growth of 33%, and retained the titles of top online sellers, seller with top favorable ratings, and seller with fastest growing domestic sales, which the company has been rewarded for several consecutive years. Regarding quality as the cornerstone and innovation as the soul, Aux has invested more than 3 billion Yuan in technology development and quality improvement in the past three years. In the meantime, it develops a unique distribution mode of “online wholesaling”, making itself the forerunner of online direct selling.
As of March 2019, Aux has five R&D centers and ten manufacturing bases under its umbrella with a combined air conditioner production capacity of more than 28 million units, aiming to achieve a 35% sales growth every year and sales of 55 million units in 2022. With its sights set high and its foundation in Chinese market, Aux believes global expansion is an integral part of its future strategy.
“Available in more than 100 countries and regions globally, Aux’s air conditioners saw overseas sales of 5 million units in 2018, making it the fastest growing air conditioner exporter of China for the fifth consecutive year. And this was achieved amid the gloomy economic landscape of 2018.” Zheng Jianjiang says.
Aux’s development concept is clear after releasing its new strategies of this year. Further enhancing innovation and quality while stepping up overseas expansion are two strategies ready to be launched. And to achieve these globally, the establishment of overseas R&D centers plays a critical role.
After careful deliberation, Aux founded its first global R&D center in the Kansai region of Japan, a core R&D area of Japanese home appliance industry that boast strong people and complete industrial supporting services as a technology cluster.
Aux plans to develop this center into an innovation incubator as well as a talent training center. The Japan-based center is expected to employ more than 150 experts and expand its scope beyond air conditioners to include kitchen appliances and portable appliances in three years to come, and is ready to start its work in air conditioner system development, structure development, electric control, quality management, industrial design, etc.
In what ways, could this center affect Aux, a domestic giant gearing up to go global? It could be:
(1) An overall improvement in technology and R&D. The center will focus on the control technology and reliability tests of multi-splits and the development of commercial central air conditioners for some time to come, which is expected to significantly enhance the brand’s technological capability in commercial field as well as global air conditioner industry.
(2) Enhanced innovation. Another key area of focus of the center is the application of simulation technology married with the advanced control technology of Japan. It will effectively improve the efficiency of product design and will allow fast and reliable product innovations that target certain markets.
(3) Elevated quality. Japan sets a role model for the world when it comes to product quality. Aux will leverage Japan’s advantages in quality control to raise its bar, laying a solid ground for its global expansion.
(4) A pivot of global deployment. With the surge of overseas sales and fast-growing production capacity, Aux is ready to deploy globally. And the Japan-based center is expected to be a pivot for it to go global.
(5) Strong improvement of brand influence. Aux always values brand recognition, and its vitality wins the heart of young consumers. The establishment of its Japanese R&D center is expected to strengthen its brand influence domestically and internationally.