Core Insights - The Chinese electric water heater industry reported impressive export figures in the first half of 2025, with a total export volume of 7.0678 million units, a year-on-year increase of 4.48%, and an export value exceeding $286 million, reflecting a year-on-year growth of 15.6% [1] - Despite the positive performance in overseas markets, there are concerns regarding over-reliance on single markets, which has led to significant revenue declines for some companies [1][3] Group 1: Structural Risks Amidst Growth - The global demand for Chinese-manufactured electric water heaters remains strong, supported by effective product adjustments and market strategies [3] - Companies like Haier and Midea have seen substantial production increases, indicating that emerging markets present significant growth opportunities [3] - However, rapid growth without structural support can lead to vulnerabilities, especially in a market characterized by high product homogeneity and low technical barriers [3][4] Group 2: Strategies for Diversification and Localization - To avoid the "single market trap," Chinese manufacturers are recognizing the need for diversified export strategies rather than relying solely on volume [4] - Localized product innovation is crucial, with companies developing products tailored to specific regional needs, such as voltage stability for markets in South Asia and Southeast Asia [5] - Establishing local manufacturing can mitigate high transportation costs and adapt to changing import policies, providing long-term strategic value [6] - Integrating local brand channels can enhance market penetration while leveraging the advantages of Chinese manufacturing [7] Group 3: Practical Solutions for Smaller Enterprises - Smaller companies lacking the resources for overseas factories or acquisitions are turning to flexible cooperation models, such as establishing direct procurement relationships with large overseas home improvement companies [8] - Utilizing foreign trade platforms for market testing combined with flexible production capabilities can reduce dependency on single markets or major clients [8] Group 4: Long-term Stability through Structural Resilience - While growth in export value and product sales is encouraging, reliance on a single country or customer base can undermine long-term stability [9] - Companies should consciously diversify risks and avoid short-term sales dependence on single markets, actively seeking a diversified market structure [9] - The ability to develop customized products for different regions and customer needs is essential, moving away from a one-size-fits-all approach [9] - Exploring new channels and customer groups is vital to avoid complacency with existing clients [9] Group 5: Path to Sustainable Growth - The key to establishing a solid foothold in overseas markets lies in optimizing export structures through diversification, localization, and differentiation [10]

Core Viewpoint - The article discusses the transformation of Garden, a century-old baking brand in China, from a traditional food manufacturer to a modern consumer brand, emphasizing the importance of innovation while maintaining quality and emotional connections with consumers [4][5][22]. Group 1: Brand History and Evolution - Garden was founded in 1926 in Hong Kong and has become a significant part of the daily lives of millions of consumers in China, representing a nostalgic childhood flavor for many [4][9]. - The brand's key product, "Life Bread," was launched in 1960 to address nutritional deficiencies in Hong Kong, becoming a legendary product that has sold for over 60 years [12][14]. - Garden has evolved from a traditional food manufacturer to a modern consumer brand, focusing on quality and emotional connections with consumers while adapting to market changes [4][22]. Group 2: Market Strategy and Consumer Engagement - Garden's strategy involves maintaining its core values of quality and trust while embracing change, optimizing supply chains, and enhancing R&D efficiency to accelerate product innovation [22][24]. - The brand is focusing on younger consumers by launching products that cater to their lifestyles, such as "Healthy Multi-Bread" and "Lucky Cookies," which emphasize lightness and interactivity [28][31]. - Garden is rebranding itself to appeal to younger audiences, shifting from a nostalgic narrative to a contemporary resonance, utilizing social media for engagement and user-generated content [36][39]. Group 3: Trends and Future Directions - The company identifies five key trends shaping the industry: health consciousness, functional foods, convenience, community-driven consumption, and digitalization [52][53]. - Garden is investing in health-oriented product development, creating low-sugar and high-fiber options to meet the evolving nutritional preferences of consumers [49][47]. - The brand is enhancing its digital capabilities to better understand consumer needs and streamline operations, ensuring agility in responding to market demands [64][65]. Group 4: Localized Production and Sustainability - Garden is establishing a localized production and distribution network across China to improve efficiency and responsiveness to regional market needs [66][68]. - This strategy not only meets the demand for product diversity but also strengthens the brand's connection to various consumer cultures across the country [68].