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How Galanz Group Could Further Internationalize Its Business

1. Introduction: The Current Internationalization Efforts of Galanz
Recent years have witnessed the surging of Chinese manufacturers as China has become the “world’s local factory”. Galanz Group, the Guangdong based home appliances manufacturer, has also evolved globally with China’s international growth. Since its inception in 1987 as a textile company , Galanz has been developing constantly and rapidly taping into the global market. The company quickly gained significant domestic market share as it started to focus on its areas of expertise in the microwave business sector on 1992. Since then Galanz has become the leading company in microwave-oven business, acquiring 25.1% domestic market share on 1995 and expanded into 61.4% on 1998 .
Having conquered the domestic market, Galanz reached into the global market through the OEM (Original Equipment Manufacturer) method in 1998 . This means that Galanz sells its products to other companies which will re-brand the products under their own names . OEM is proven to be a swift method of tapping into the global market for Galanz, while the other parties benefit from getting low manufacturing costs without having to set up their own operations in China.
Recently, Galanz has been starting to promote its own independent brand. Among total export volume of Galanz from the start of its global operation to 2003, the ratio of independent brands and OEM rose from 1:9 to 3:7 . This shows a change in Galanz internationalization strategy, switching focus into getting consumer to recognize Galanz as an independent brand.
Aside from its success in the microwave market, Galanz has been trying to expand its product portfolio, introducing other household appliances from then on. The company currently has 13 subsidiaries, 52 sales offices in China and branches in Hong Kong, Seoul and North America .

2. The Key Success Factor of Galanz
It is undisputable that one of Galanz’ strength is the ability to produce goods with a...