Hailing district in Taizhou, Jiangsu province, is accelerating the development of its smart home industry cluster, adopting a strategic model led by the leading enterprises in the industrial chain, supported by the core supporting enterprises, and complemented by the suppliers of raw materials, basic components or other foundational elements necessary for the production process. This approach has expanded the cluster's scale and enhanced its competitiveness.
The cluster, comprising smart appliances and sofa home furnishings, boasts 69 enterprises above designated size — companies with annual revenue of at least 20 million yuan ($2.93 million), including three national "little giant" firms — a title for outstanding specialized and high-tech small and medium-sized enterprises — and 14 specialized and sophisticated SMEs. It has formed a complete industrial chain and a collaborative ecosystem among large and small enterprises.
In the smart home appliances sector, which is concentrated within the Hailing Industrial Park, LG Electronics acts as the anchor company, capable of producing 2 million high-end refrigerators and 10 million compressors every year. The company has attracted over 30 local suppliers, achieving a localization rate of 70 percent for key components and contributing to the development of a sub-cluster valued at 15 billion yuan.
Looking ahead, Hailing district plans to capitalize on internet of things, artificial intelligence, and upgrades to consumption to enhance cluster capabilities. By promoting vertical integration and digital transformation, it aims to move from single-point manufacturing to a comprehensive smart home ecosystem and establish itself as a leading hub in the sector.