HOUSEHOLD ELECTRICAL     APPLIANCESINDUSTRY—THE    PILLAR OF ECONOMY IN SHUNDE

Situated in the hinterland of the Pearl River Delta, Shunde adjoins Guangzhou, Foshan and some big cities, to the southeast ，64 sea miles from Hong Kong, to the south, 50 sea miles from Macao. Shunde administers 10 towns (districts), with a total area of 806 square kilometers, the permanent resident population of 1.05 million, the transient population of 500 thousand, and the population of Shundenese people who live in HongKong, Macao and other places in the world reaches 400 thousand . After the issuance of reform and opening policy, the economy of Shunde has been developing rapidly and gradually transformed from a traditional agricultural town to a new and developing industrial city in south China, and it has also established Kelon, Ronshen, Midea, Macro, Galanz and many other brand names. The production and sales of refrigerator, air conditioner, microwave oven, electric cooker, electric fan, electronic sterilizing cupboard and water heater are far ahead of other cities in the country. With more than 2000 household electrical appliances and fittings production enterprises with extensive scope, these together enable the city enjoy fine reputations of “Kingdom of Household Electrical Appliances ”and “the Capital of Household Electrical Appliances”. In 2001, the whole city produced 2.18 million refrigerators, 3.37 million air conditioners, 33.47 million electric fans, 7.2 million electric cookers, 410 thousand of hood fans, 600 thousand washing machines, 11.3 million microwave ovens, 1.16 electronic sterilizing cupboards, 18.85 million gas appliances. Not only has the household electrical appliances industry become the pillar in the economy of the city but she has also occupied outstanding place in the whole country. In 2001, the output value of household electrical appliances enterprises with extensive scope reached 337.41 hundred million Yuan, accounted for 45% of industry total output value of the city, among which the output value produced by enterprises with sales exceeding 1 hundred million Yuan reached 292.06 hundred million Yuan, which accounted for 48.7% of output value of exceeding-hundred-million-Yuan enterprises of the city, if pluses the output value of fittings production enterprises, the proportion will exceed 50% of the total . In addition, according to incomplete statistics, the household electrical appliances industry output value of Shunde accounted for 15% in the same industry in the country in 2001. In 2001, the total volume of export trade was USD 30.88 hundred million, among which the household electrical appliances occupied the half. Under the guidance of “developing the economics of scale, establishing the international name brands ”, many of the famous brands have appeared in the market competition. Among the 16 China ’s Famous Trademarks in Guangdong, 5 of them are from Shunde, they respectively are Ronshen (refrigerator), Midea (electric fan and air-conditioner), Macro (gas appliances), Kelon (air conditioner),Galanz (microwave oven). Guangdong Kelon Group. Co., Ltd. is the sole enterprise possesses two famous trademarks, Macro is the only gas appliances enterprise which owns China’s famous trademark. Huabao (air-conditioner), Kangbao (electronic sterilizing cupboard), Vanward (gas water heater), Zhengye (pipe hood fan and air interchanger) are confirmed as Famous Trademarks in Guangdong. After Midea, Kelon, Ronshen, Galanz were confirmed as China’s Famous Trademarks by China’s Name Brand Strategy Promotion Committee, Macro and Vanward are listed in the China’s Famous Trademark in 2002. In the 7 most famous gas water heater name brands, Shunde occupies two. Till now, 6 products from 5 enterprises are confirmed as China’s Famous Trademarks. According to the list of China’s Most Valuable Name Brands issued by Beijing Name Brand Assets Evaluation Co., Ltd., in 2001, Midea ranked the 8th, the brand value was 101.36 hundred million Yuan, increased nearly 40 hundred million Yuan than in 2000.The brand value of Kelon was 98.08 hundred million Yuan and ranked the 10th, Ronshen 55.06 hundred million Yuan, ranked 16th, they two amount to 153.14 hundred million Yuan . Besides these, according to the evaluation from authoritative institute, in the early 2000, the invisible assets of Galanz reached 101 hundred million Yuan and became one of the most influential and valuable name brands. In recent years, the enterprises of Shunde implemented the name brand strategy, they developed pluralistically and expended the advantage of their name brand. Many famous foreign household electrical appliances enterprises invested in Shunde. The participation of Toshiba, Sanyo, Matsushita, Bosch, Whirlpool and some other famous enterprises reflects the effect of name brand strategy of the city.