Source: Caixin
As domestic competition intensifies, Chinese home electronics companies are seeking opportunities to expand their businesses into overseas emerging markets to sustain growth.
Konka Group, a Chinese home appliance maker known for its TVs, has set up a factory in Egypt as part of a joint venture with local electronics company Hoho Electric & Furniture Co. to tap into LED TV markets in Africa and the Middle East, state-run Xinhua news agency reported Friday.
The factory — the first phase of Konka’s “planned 100-million-dollar investment in Egypt”— will be able to produce more than 600,000 LED TVs annually, Xinhua said. The company said the joint venture is a response to the Belt and Road Initiative, Xinhua reported.
Earlier this year, Konka said it was partnering with Nigeria-based e-commerce platform Jumia, which operates in 14 African countries, to boost sales on the continent.
Konka’s turn toward African markets comes amid falling sales at home. The number of TVs sold during the first three months in 2019 fell 1.1% year-on-year to 12 million, while sales revenue plunged 13.1% to 34.9 billion yuan, according to data from Beijing-based research firm All View Cloud.