Rinnai Group optimistic of greater sales through CIIE

Nagoya-based Rinnai Group is looking to sell more high-quality heat and energy appliances to Chinese consumers through the China International Import Expo (CIIE), a major event that demonstrates the country's eagerness to further open up its doors and become a promoter of global free trade.

Shinji Katsuhiko, executive director of Rinnai Group, and managing director of Shanghai Rinnai Co Ltd, said the CIIE, the first large-scale exhibition of imported brands and products in China, "is a benefit for foreign brands to introduce high-quality products to China's vast consumer market to meet the rising demand of its growing mid- to high-end consumer base."

According to Katsuhiko, during the first CIIE, the Japanese manufacturer of gas appliances showcased a number of lifestyle solutions, including a heating system, a domestic hot water system and smart kitchen products at its 300-square-meter pavilion.

"There were already companies that wanted to connect with us before the exhibition. We are also working closely with the housing and hotel industries," he added.

Over the past three years, China has risen to become Rinnai's the second largest market, after the Japanese domestic market, in terms of sales revenue. Last year, the company generated more than 3 billion yuan ($432 million) in sales revenue in China, accounting for 24.4 percent of the group's total overseas sales.

"I believe the China market will be full of potential over the next five years. Although the offline market in first- and second-tier cities tends to be saturated, the overall consumption level is developing in the high-end direction," said Katsuhiko.

He added that consumption levels have also been increasing due to economic development in third- and fourth-tier cities where purchasing power has been elevated in recent years.

"The current post-1970 to post-1990 consumer groups are habitually online shoppers, and the current development of e-commerce channels has brought momentum to the home appliance market. From these two perspectives, the Chinese market looks promising for the next five years," he said.

Rinnai entered the Chinese market in 1993 and established Shanghai Rinnai Co Ltd with Shanghai Gas Group. In March 2017, Shanghai Rinnai launched Rinnai New Industrial Park in Shanghai's Fengxian district.