Af­ter Rio, Van­ward goes for gold

China Daily (USA) - - BUSINESS - By ZHENG CAIXIONG in Guangzhou zheng­caix­iong@ chi­

Guang­dong Van­ward New Elec­tric Co Ltd (Van­ward) is ex­pect­ing the 2016 Rio OlympicGamesto be a spring­board for the com­pany to ex­pand its pres­ence in world mar­kets in the com­ing months.

Van­ward, a ma­jor gas ap­pli­ance man­u­fac­turer in the main­land, raised its im­age af­ter its prod­ucts won ac­knowl­edg­ment in the Rio Olympics, ac­cord­ing to Huang Sheng, gen­eral man­ager ofVan­ward.

The Foshan-based com­pany sold 10,000 gas wa­ter heaters to the Rio Olympics and the qual­ity was well re­ceived by their users, Huang said.

More than 99 per­cent of the wa­ter heaters were in­stalled and used in 3,604 apart­ments in 31 build­ings in the Olympic Vil­lage and 120 sup­ple­men­tary business facilities be­fore the Olympic num­ber of gas wa­ter heaters that Van­ward sold to the Rio Olympics Games opened this month.

“Van­ward is the only man­u­fac­turer that of­fers wa­ter heaters to the Rio Olympics and that in­di­cates the qual­ity of Van­ward’s prod­ucts has well been rec­og­nized in Brazil and the world,” Huang told China Daily on Tues­day.

But Huang re­fused to re­veal how much Van­ward earned from sell­ing the wa­ter heaters to Rio Olympics, say­ing it is a com­mer­cial se­cret.

“With the suc­cess­ful sales to the Rio Olympics, Van­ward is now seek­ing strate­gic co­op­er­a­tive part­ners to in­crease its sales in world mar­kets in the com­ing years,” Huang said.

“Al­though Van­ward has no plan to set up pro­duc­tion facilities abroad or pur­chase over­seas com­pa­nies at the mo­ment, we hope to be able to es­tab­lish a long-term strate­gic co­op­er­a­tive part­ner­ship with off­shore com­pa­nies and use their sales net­works and chan­nels to jointly ex­pand into the in­ter­na­tional mar­ket in the fu­ture,” Huang said.

Huang said he be­lieved Van­ward’s sales would con­tinue to grow in the com­ing years, as the qual­ity of its prod­ucts had been rec­og­nized by the mar­ket.

To this end, Van­ward has signed a con­tract with Ger­many’s Bosch group to jointly con­struct a new pro­duc­tion fa­cil­ity to ex­pand its pro­duc­tion in Foshan in Oc­to­ber.

Ac­cord­ing to their terms, both par­ties will equally share the to­tal in­vest­ment of 412 mil­lion yuan ($63.38 mil­lion) for the fac­tory, lo­cated in Foshan’s Gaom­ing dis­trict.

The joint ven­ture will mainly study and pro­duce new gas wa­ter heaters and re­lated prod­ucts and com­po­nents.

Van­ward is not alone in pro­mot­ing its world pres­ence via the Olympic stage. Foshan com­pa­nies, in­clud­ing Midea Ap­pli­ance and Chigo Air Con­di­tion­ing, are also spar­ing no ef­forts to pro­mote their sales dur­ing the Rio Olympics that will not end till Aug 21.

Chigo has also won pub­lic bid­dings to in­stall about 20,000 air-con­di­tion­ers in Olympic Vil­lage and re­lated venues and com­mer­cial build­ings.

In ad­di­tion to com­pet­i­tive sports, the Olympics is also an im­por­tant stage for ma­jor in­ter­na­tional com­pa­nies and man­u­fac­tur­ers to demon­strate and pro­mote their tech­nolo­gies and prod­ucts, ac­cord­ing to ChenMing, pro­fes­sor and di­rec­tor of the mar­ket­ing depart­ment with the School of Business Ad­min­is­tra­tion, South China Uni­ver­sity of Tech­nol­ogy. Xie Xin­tian con­trib­uted to this story.


A Van­ward work­shop in Foshan, Guang­dong prov­ince.

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