In July, temperatures in many European countries exceeded 40 degrees Celsius, and the &#34;cooling economy&#34; is becoming a new consumer necessity here. The latest data released by Alibaba International Station shows that Chinese-manufactured mobile air conditioners, portable fans, ice makers, and ice cream machines have become the &#34;four major essentials for summer exports,&#34; with the GMV (Gross Merchandise Volume) of cooling products increasing by 77% year-on-year. Europe, which is &#34;not relying on air conditioning to get through summer,&#34; is becoming a destination for Chinese cooling equipment manufacturers. Recently, a reporter from the Global Times contacted several export companies in the home appliance sector and interviewed multiple European consumers to see how China's &#34;cooling artifacts&#34; play an important role in the local market.
<h2>Air Conditioning is Entering European Homes</h2>
CNN recently reported that nearly 90% of American households have air conditioning, but in Europe, this figure is about 20%. As high temperatures sweep across the European continent, air conditioning sales have surged. According to data from the German consumer portal Verivox, in 2021, only about 3% of German households had air conditioning. By 2024, this figure is expected to rise to 19%. A report released by the International Energy Agency predicts that by 2050, the number of air conditioning units in the EU could increase to 275 million, more than double that of 2019.
At the largest appliance chain store, MediaMarkt, in Berlin, the cooling products left the special correspondent of the Global Times dazzled, including air conditioners, fans, electric blankets, neck fans, and more. The staff told the reporter that these products are mostly &#34;made in China.&#34;
Among them, there are hundreds of types of air conditioning products. The reporter saw familiar Chinese brands such as Haier, TCL, and Midea among the air conditioning products. A customer named Melanie told the reporter that she was preparing to purchase a Haier air conditioner equipped with artificial intelligence technology, which is energy-efficient and inexpensive, priced at nearly 1,000 euros. She stated that the cost-performance ratio of Chinese-made air conditioners is higher than that of Korean and European products, and they also have more features.
&#34;The controversy surrounding air conditioning is becoming the focus of political games in Europe this summer. Due to the recent heatwave, Europe's resistance to air conditioning is weakening,&#34; reported the Wall Street Journal on the 22nd.
According to statistics from the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, from January to May this year, China's household air conditioner export value reached 9.45 billion USD, a year-on-year increase of 17.8%; fan export value reached 5.65 billion USD, a year-on-year increase of 7.1%; refrigerator export value reached 3.32 billion USD, a year-on-year increase of 5.1%.
The installation and operation of air conditioning are very expensive, limiting Europeans' use of air conditioning. According to MediaMarkt staff, installing split air conditioning requires permission from landlords and even government departments. Installation must also be carried out by certified professionals, costing hundreds of euros, and regular maintenance is required.
Zhu Zhou, the European Regional Director of Midea Air Conditioning, told a reporter from the Global Times that Midea's innovative product line, PortaSplit (mobile split-type) air conditioners, launched for the European market, is very popular in countries such as Germany, France, Italy, and the Netherlands, with many markets experiencing &#34;a machine is hard to find.&#34;
Zhu Zhou introduced to reporters that, unlike traditional split air conditioners, Midea's PortaSplit air conditioner, while also divided into indoor and outdoor units, is very easy to install, allowing users to do it themselves. It also has the portability of a mobile air conditioner and provides a good cooling experience. &#34;In Northern Europe, the cost of purchasing products and installation generally requires around 3,000 euros, while Western and Southern Europe are slightly cheaper. However, the price of Midea's mobile split air conditioner is 1,199 euros, and since it can be installed by oneself, a lot of installation costs can be saved.&#34;
Zhu Zhou told reporters that this summer, the keyword search volume for &#34;Midea/PortaSplit&#34; on Google Germany increased by 20 times year-on-year, with cumulative sales exceeding 80,000 units.
<h2>How to Create a Hot-Selling Fan</h2>
In addition to air conditioners, reporters observed that almost every household in Germany can find several &#34;Made in China&#34; cooling products. Many German consumers told reporters that &#34;Made in China&#34; cooling products not only have price advantages but also a complete range of product categories, often featuring unexpected and interesting innovations.
Stefan, a plumber in Berlin, Germany, works in a place without cooling equipment. Recently, he purchased a set of cooling uniforms from a Chinese brand at a department store, which are not only breathable but also protect against high temperatures, ultraviolet rays, and sweat. Reporters learned that the cooling uniforms benefit from special technologies such as cooling fabrics or ventilation devices in the clothing layers, allowing internal temperatures to be 15 degrees Celsius lower than the external environment, making them very suitable for wearing at hot construction sites.
In March of this year, Liu Lei, deputy general manager of Weiken Bear Brand Supply Chain Management (Shenzhen) Co., Ltd., knew that semiconductor cooling handheld fans would be a hot-selling item this summer. Liu Lei recalled that after the New Year, in March, orders from countries like Europe began to come in, and the semiconductor cooling handheld fan indeed &#34;exploded.&#34;
In the industry, a &#34;hot product&#34; is defined as monthly sales of 100,000 units, and Liu Lei's company's semiconductor cooling handheld fan has a monthly sales volume of about 200,000 units.
&#34;Usually, we need to feel the trend six months ahead of the market.&#34; Liu Lei told reporters that in recent years, new hot products have emerged every year. This year, Vietnam and Thailand also saw a hot-selling hat with a fan installed inside, which is both cool and sun-shielding, and there is a trend of it becoming popular in the European market as well. Last year, high-speed handheld fans ranked high in global sales, and before that, various cooling devices for making ice cubes were also very popular.
Currently, semiconductor cooling handheld fans are sold for over 100 euros in the market. &#34;You can understand that a metal piece cools through technology, and the air blown out carries the icy feeling of the metal piece, which is very refreshing.&#34; Liu Lei stated that although it seems like a simple technology, similar products cannot be made in the European local market. &#34;It's not cost-effective for Europe to make it themselves, mainly because of high costs and expensive labor. The technology for small household appliances is already very mature in China, with a complete industrial chain including injection molding, circuits, assembly, batteries, etc. In Shenzhen alone, even in our company, I can meet over 80% of the demand,&#34; Liu Lei said.
Chen Jian'an (pseudonym) runs a mobile phone parts company in Shenzhen and accidentally discovered the market demand for portable fans, also producing neck-mounted fans and other products from part of the production line
&#34;The market pays great attention to the demand in some niche areas, from vertical fans to desktop fans, and to different scenarios, such as waist-mounted and neck-mounted fans. Customers have specific needs in certain scenarios, and what the Chinese market can do is quickly seize customer demand and timely adjust products,&#34; Chen Jianan told Global Times reporters. &#34;If you can uncover customers' explicit or implicit needs and produce quality products consistently, the chances of success are very high.&#34;
<h2>Increasing Emphasis on Product IP</h2>
During the overseas expansion, Liu Lei encountered many domestic peers in various regions unexpectedly. In the European market, he believes that his company's familiarity with the local market is not as good as that of other peers. A few years ago, ice machines became extremely popular, and after a large number of ice machines from Zhejiang were launched, market prices continued to decline, and profits became very low. In April this year, Liu Lei's company was still gradually selling ice machines overseas, &#34;It may not even be profitable, but we keep them to maintain popularity and retain old customers.&#34;
In addition, Liu Lei told reporters that after many years of going overseas, he places great importance on product IP (intellectual property). &#34;Don't underestimate a small fan; before we launch it, we first need to ensure that its patented appearance and other aspects are registered in various regions. When we develop a product, the initial investment cost is close to 200,000 yuan even before we see the actual product.&#34;
In Yiwu International Trade City, Zhang Jiying, founder of Zhejiang Xingbao Umbrella Industry, also felt a surge in demand for sun protection products in the European market. Zhang Jiying told reporters, &#34;Our advantage is that we can continuously improve products based on their needs.&#34; According to European customer demands, her umbrellas have added many features, such as built-in fans and flashlights, with an increasing variety of styles. Some umbrellas are particularly lightweight, weighing only about 100 grams, with frames made of carbon fiber and fabric using nanotechnology, making them compact and portable, which is very popular among consumers.
Zhang Jiying said that in Yiwu, one does not only feel the ups and downs of international trade but also learns to flexibly pivot according to market demands. &#34;When everyone says business is hard, we don't complain about the market being bad; all the bad is our own fault, because our products haven't been updated or we haven't served customers well,&#34; Zhang Jiying said. &#34;If we serve our customers well and improve our products, customers will not be able to live without our products, and that is what we have always aimed to do.&#34;
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As temperatures in many European countries exceed 40 degrees Celsius, the sales of cooling products such as mobile air conditioners and portable fans made in China have surged, becoming a new essential for summer consumption. According to data from Alibaba International Station, the GMV of cooling products has increased by 77% year-on-year. The penetration rate of air conditioners in European households is gradually rising, and it is expected that by 2024, the proportion of households with air conditioning in Germany will reach 19%. Chinese brands such as Haier and TCL have performed well in the local market, with consumers recognizing their cost-effectiveness and functionality

- In July, temperatures in several European countries exceeded 40 degrees Celsius, leading to a surge in demand for cooling products, particularly those manufactured in China.  
- The sales of air conditioners and cooling devices have significantly increased, with exports of Chinese air conditioners reaching $9.45 billion in the first five months of this year, a 17.8% increase year-on-year.  
- As European consumers increasingly adopt air conditioning, the market for portable and easy-to-install cooling solutions is expanding, highlighting the competitive advantage of Chinese manufacturers.

Wallstreetcn

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