(Yicai) July 29 -- China's white goods exports, excluding color televisions, showed signs of recovery in the first six months, climbing 4.6 percent from a year earlier to USD71.8 billion, according to customs data. However, industry insiders cautioned that the global macroeconomic environment remains challenging and overseas consumer demand has yet to fully recover.

Export growth rates of various types of home appliances showed a mixed performance in the first half. Cooling appliances, health and environmental products and small kitchen appliances recorded rapid growth, while exports of some large appliances and traditional low-end categories logged a year-on-year decline.

As the largest home appliance export category by value, air conditioners faced pressure from a high comparison base last year and other factors. Total export volume tumbled 9.7 percent in the first half from a year ago to 51.4 million units. Of this, exports to Europe slumped 4.2 percent to 13.3 million units.

However, an unusually hot summer triggered shortages of portable air conditioners in parts of Europe, including several Western European countries. Customs data show that China’s exports of home air conditioners to the European Union climbed 2.4 percent in the first six months from the same period last year to USD1.5 billion, with export volume increasing 4.6 percent to 9 million units. Among that category, exports of portable air conditioners to the EU surged, with the value soaring 66 percent to USD250 million and volume jumping 62.9 percent to 2.1 million units.

Global economic conditions remain weak and overseas consumers are still cautious about spending, Yu Xuehui, founder of Cixi Home Appliances Store, a small home appliances export platform in Ningbo, told Yicai. As a result, home appliance exports in the first half cannot yet be considered to have fully bottomed out and recovered.

The moves of leading manufacturers show that emerging markets and Europe remain key areas for expansion. Recently, Midea Group established a subsidiary in South Africa, with its washing machine factory there scheduled to start production this year. Meanwhile, the European Heat Pump Association also visited Haier’s headquarters to learn more about its large heating and cooling business.

Industry experts told Yicai that the current challenges facing China’s home appliance exports include product diversification, regional imbalances and slowing growth. Exports of traditional air conditioners and low-end small kitchen appliances are declining, while industry growth increasingly relies on environmental appliances and high-end small appliances. The market share in North America continues to shrink, placing higher demands on companies to diversify their sales channels. A return to rapid export growth is unlikely. Companies need to seize opportunities in emerging markets and focus on high-value product categories to offset pressure from weaker traditional markets and low-end products.

Air conditioner exports faced pressure in the first half, Li Xuefei, an analyst at China Industrial Online, told Yicai. Orders from the Middle East have declined sharply due to geopolitical conflicts, while high inventory levels in Eastern Europe and Latin America have suppressed new purchases. Conversely, demand for portable air conditioners in Western Europe has increased due to the hot weather, resulting in shipments surging 70 percent year on year. However, the inventory levels for split air conditioners remain relatively high.

Editor: Kim Taylor