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European kitchen maker looks to tap Chinese market

Update:2017-07-13

Schmidt Kitchens, one of Europe's leading kitchen suppliers, has launched an ambitious expansion plan to tap into the Chinese middle class's growing love for modern home décor.

Just two years after opening its first Chinese manufacturing base in Guangzhou's Zengcheng district, Schmidt now plans to open another massive facility in Huanggang, Central China's Hubei province, with an investment budget set at 800 million yuan ($117.88 million).

"The decision [to open the new production base] is based on the rapid development of our business and our upbeat analysis of the future prospects for this competitive but colossal market in China," noted Zhao Bin, general manager of Schmidt Kitchens' marketing and sales department in China.

He said that his company is also seeking to expand its Chinese sales outlet and showroom network from 600 to more than 800 by the end of 2017.

The French-owned kitchen brand first expanded into China in 2014, when it launched a joint venture with Suofeiya Home Collection Co Ltd, a Shenzhen-listed bespoke furniture supplier based in Guangzhou.

Schmidt Kitchens hosts its first ever fashion show in China to showcase the flexible applications of its 3-D laser sheet material during the 2017 China (International) Building Decoration Fair in Guangzhou. [Photo provided to chinadaily.com.cn]

The joint venture invested more than 400 million yuan to establish its first Chinese manufacturing base in Guangzhou soon afterwards.

"Our business revenue has been doubling year on year. And it is expected to gain further speed when our manufacturing capacity increases and sales network expands," Zhao said.

According to a press release published by Suofeiya Home Collection Co Ltd, Schmidt Kitchens realized a business turnover of 102 million yuan in China in the first quarter of this year, a surge of 173 percent year-on-year.

The company's sales target for 2017 is 800 million yuan. Its turnover in 2016 was 417 million yuan.

Li Hailing, marketing director of Schmidt Kitchens in China, attributed the company's surge in sales to its environmentally friendly business model, which it applies to every stage of the manufacturing process, from raw materials selection to installation.

She cited particularly the company's patented 3-D laser sheet material as an example. By applying laser technology to edge banding, the sheet material is not only capable of many more colors and mold and easier to clean, but is also able to minimize pollution, according to Li.

The patented sheet material made a big splash at a recent fashion show at the year's China (Guangzhou) International Building Decoration Fair, which concluded on Tuesday. The material, with its 27 trendy styles, made headlines on many trade websites after the show, and also attracted the attention of many potential clients, particularly younger millennials, according to Li.

Schmidt Kitchens is renowned for its quality and elegant designs. [Photo provided to chinadaily.com.cn]