Chinese enterprise digs deeper into S. Africa
(People's Daily Online) Sissy Zhang 2016-02-22 08:50
Hisense donates a high-end refrigerator to SANCCOB (Southern African Foundation for the Conservation of Coastal Birds) to keep food fresh for penguins on March 20, 2013.
Data from various sources suggests that a much tougher year lies ahead for foreign investors in South Africa due to the challenging domestic macroeconomics that exist in the country. Despite this, some Chinese enterprises like Hisense are still focusing on developing local business and becoming more deeply rooted in South Africa.
Chinese consumer electronics and home appliances manufacturer Hisense opened new headquarters in Century City in the northern suburbs of Cape Town in June. According to reports, the move was due to "increased sales and production necessitating even greater job creation.”
Entering the South African market in 1996, Hisense has maintained rapid growth in sales over the years. In 2013, it established a manufacturing plant in Atlantis, 40 kilometers away from the Cape Town CBD. Capable of producing 400,000 televisions and 400,000 refrigerators a year, the 350-million-rand ($21 million) investment directly created 700 jobs for the area while indirectly creating 3,000.
Aside from business investments, Hisense has spared no effort when it comes to strengthening ties with the local community and its consumers, seeing this as an essential part of success in the region. The first step it took was wildlife protection. In the same month it opening the factory, Hisense donated eco-friendly refrigerators to the Southern African Foundation for the Conservation of Coastal Birds to keep food fresh for penguins. It also sponsored the Hermanus Whale Festival in 2014, during which time it displayed videos of sea-life conservation throughout the festival.
“We’ve been in South Africa for more than 20 years and have become a proud South African home appliances enterprise. We are willing to stay, contribute and improve the living conditions of the local community,” Aaron Wang, the financial director of Hisense South Africa, told the People’s Daily Online.
“Hisense cares for the underprivileged and always considers how these people can really benefit from us. So we make sure our campaigns benefit different groups such as orphans, students and the disabled,” Wang explained.
Through charitable events, Hisense has built up its reputation among local South Africans. Its products are widely used in various campaigns. The company has donated television sets and raised funds for autistic children and orphanages in South Africa for years. It has sponsored high school students, the Atlantis SAPS station and the Cape Town Chinese Committee Police Forum. It also partnered with the Nelson Mandela Foundation and the country’s leading energy saving campaign 49M in 2013.
Speaking at a signing ceremony in Cape Town, Pieter Pretorius, Eskom strategic marketing senior manager, said the partnership between 49M and Hisense was in line with the initiative’s strategic intent to join forces with businesses on projects that promote sustainable living in response to the country’s constrained power system.
Every month, around 80 units of high quality wood used for packaging of refrigerator panels are disposed of at the Hisense factory. In order to efficiently make full use of this wood, the firm began working with a local wood manufacturer to make tables and chairs, which are then donated to underprivileged communities, retirement homes and schools.
Meanwhile, Hisense is supporting local innovative SMEs by sponsoring the United Nations Environment Program’s SEED Award. Once again it is a long-term project focused on sustainable development.
Wang elaborated on the reason why Hisense is so keen on these campaigns: “Only when we deepen our understanding of our customers, will we be able to truly get to understand their needs, build connections with them and integrate into the community.” Its win of the Award of Excellence at the Social Responsibility Awards for Chinese Enterprises in South Africa has encouraged its counterparts to learn from its experience in playing a part in local society.
The Social Responsibility Awards for Chinese Enterprises in South Africa were announced in December 2014, which was the first of their kinds on the African continent.
The event was founded by the Embassy of China in South Africa and organized by the South Africa-China Economy and Trade Association (SACETA), also known as the Chinese Enterprises Organization in South Africa.
Judges consisted of representatives from SACETA, the Chinese Embassy and local media outlets. Several things were taken into consideration, such as enterprises’ contributions to the local economy, employment, technology and public welfare.
Distinctive awards were given to nine outstanding Chinese enterprises in South Africa: Hisense, Sinosteel, Huawei, FAW, SANY, Bank of China, China Construction Bank, Gold One International and Rayal Ceramics.
(The story was originally published on Business Day on January, 29th, 2016.)
