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Shenzhen-based top TV and mobile-phone maker Konka Co has set a target of improving its share of the mainland's refrigerator market to 18 per cent in five years from the current below 5 per cent.

Wang Youlai, vice-president of Konka, told reporters on Sunday that the group plans to fulfil the sales target of 2 million units of refrigerators a year in 2008 at an annual growth of over 51 per cent amid stiff competition.

"We aim to make Konka a world-renowned brand for home electric appliances; so we can't ignore the refrigerator market," Wang said.

Before shifting the strategic focus to refrigerator business, Konka had put nearly all its resources to developing high-end TV and mobile-phone markets.

The group used the high-definition technology standard in its high-end TV series, including LCD TV, plasma-display-panel TV, rear-projection TV and digital TV, at the beginning of this year. Konka TVs have reached the No 1 position in the domestic market since then, of which high-definition LCD TV has taken more than 40 per cent market share, far ahead of other competitors. Meanwhile, its mobile phone unit sales are also among the country's top three.

An authoritative market research that indicates a promising market for refrigerators in China reinforced Konka's determination to consolidate the business.

The research report showed that the refrigerator penetration rate in the central and western regions, such as Henan and Yunnan provinces, as well as some eastern regions, including Fujian and Jiangxi province, is still low but people are eager to buy one. These regions are expected to become a big market in five years, said the report.

In some big cities, replacement buying and upgrading spell good news to refrigerator makers.

"The refrigerator market, though seeming to reach saturation, still has plenty of room to grow," said Wang. "With foreign players joining the competition with domestic makers, challenges and opportunities co-exist; we believe it's good timing for Konka to join the game because we are strong in funds, research, production, sales channels and have earned a good reputation," he added.

The group transferred refrigerator-related research and development, manufacturing and sales to a new subsidiary, Anhui Konka Electric Co, in April.

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