- Rapid shift to e-commerce amid COVID-19 helps company achieves remarkable growth, while a collaboration with China Railway Express enhances logistics efficiency
BERLIN, April 2, 2021 /PRNewswire/ -- Changhong, a key player of the global consumer electronics market, saw its sales in Europe triple in 2020. Due to the outbreak of COVID-19, the company quickly switched over to developing its e-commerce arm, expanding channels and setting online shop on many of Europe's key e-commerce platforms, with the result that, online sales achieved a four times increase from a year earlier. The recent departure of the first Changhong freight train over China Railway Express (CRE) is a further indicator that the company's ability to response to trends in the market will be further enhanced.
Europe is a key market for Changhong's development outside of its home base. "The shortened transit time for 'made in Sichuan' household electrical appliances destined for countries across Europe served by the railway will go a long way in helping us accelerate expansion in the market." said Changhong Europe Electric general manager Tiger Wu. In the past, it took more than 45 days for Changhong's products to travel from Guangdong province to Prague in the Czech Republic when sent as ocean freight. Now, with CRE, transit from Chengdu to Prague is shortened to 13 days. Market and production needs can be better met while response efficiency is greatly improved.
CRE's "Changhong Express", with 41 full containers of household electrical appliances 'made in Sichuan', left Chengdu on January 6 and reached Duisburg in Germany on January 24. This is the first such movement of goods following the signing of the agreement with CRE in Chengdu and Chongqing.
"At this time, Changhong is sending refrigerator and other fully-assembled equipment, as well as circuit boards, Internet of things modules, among other such devices, to Europe through CRE, meeting growing demand in the European market as well as the needs of manufacturers located there, and providing reliable support for further rapid expansion in that market. At the same time, Changhong is integrating European resources, building a logistics service platform, and bringing back European-made auto parts to Chengdu through CRE to service automobile and other manufacturers in China." noted Wu.
Changhong Europe Electric, located in Nimburk, Czech Republic, is the largest Chinese-built manufacturing facility in the country. The flat-panel TVs manufactured there have entered many European markets and are already garnering considerable local market share. Due to the adverse effects on traditional routes since the arrival of COVID-19, CRE has become an important supply line.
Innovation in logistics and storage made possible by CRE extends to innovation in business models. Yang Jin, deputy general manager at Sichuan Changhong Electric and head of overseas business said, "China Railway Express (Chengdu-Chongqing) will help ensure the stability of the regional industrial chain and supply chain, giving full play to the size effect of international hubs and the stimulating effect on industry and trade, while exercising a key role in the rapid transformation of Chengdu and Chongqing from a back seat role across China's overall economy to one of a "portal hub" and a central player in the country's economic future. The logistics channel created by China Railway Express (Chengdu-Chongqing) is expected to further consolidate Changhong's global supply chain system. Looking forward, Changhong plans to take advantage of the Chengdu-Chongqing supply chain to continuously expand its presence in the European market and serve the European manufacturing sector. "
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