(Yicai) Oct. 17 -- Chinese consumer electronics brands will keep expanding their presence in Europe due to matching the product quality of established competitors who are retreating from the market, according to the chief executive of leading tech event Internationale Funkausstellung Berlin.

"There's a good momentum at the moment" for Chinese brands in Europe, Leif Lindner said in an interview with Yicai yesterday. "I can judge the quality a little bit because I was working in the consumer electronics business for so long, and the quality now is on eye level, so it's a good momentum to join the market."

Lindner, who was in Shenzhen for a meeting with major Chinese tech firms that took part in the IFA last month, including TCL Technology Group and DJI Technology, identified a significant strategic opening for Chinese companies in Europe due to the retreat of Japanese rivals.

"Sony Group is shrinking market share in Europe, in Germany, while Panasonic announced that it will get out of TV consumer electronics," creating space that Chinese manufacturers can fill, Lindner noted. "Hisense Group is now number three, TCL number four in Germany."

The opportunity for Chinese brands is particularly pronounced in Germany's premium segment, where products over EUR2,300 (USD2,450) make up 28 percent of sales, Lindner said, adding that independent retailers who once relied on Japanese brands are actively seeking alternatives.

Chinese Firms' Strategic Transformation in Europe

The success of Chinese companies in Europe is built on a "fundamental transformation" in strategy, moving far beyond just quality, according to Lindner. "The perception of Chinese products is getting better and better," a shift that began five to six years ago, he pointed out.

Growing consumer acceptance of Chinese tech brands also benefits from changing perceptions driven by companies such as new energy vehicle giant BYD, Lindner said. "Consumers understand Chinese companies are doing good, are intelligent, and that is a good momentum for a moment."

Five years ago, the Chinese believed that the key to success was "this is the way people had to follow," Lindner noted. "Now they are more open, they are listening and they are adapting their strategy to local needs," he said, but warned that a critical, and often underestimated component, is after-sales services.

"Too many companies invest the least possible for after-sales service because it's a cost center," Lindner pointed out. "But if you want to build up your brand and create consistency and a good word of mouth in social media, you have to do your calculations. Having that in mind, it's like a marketing cost."

In addition, Lindner cautioned against overreach with growing market share. "You have to be bold. You don't have to be arrogant," he said, adding that some firms, such as BYD, have moderated their marketing in Germany due to the "danger when people have fears like 'we have to stop the Chinese because they're getting too dominant.'"

Chinese Firms Partially Push in Europe Amid US-China Trade Tension

The US-China trade tensions are an "additional pushing factor" that accelerated an existing trend of Chinese companies focusing on Europe, but it's not the main cause, according to Lindner. "If the car is already driving fast, let's say 150 mph, with the tariff situation now, it was 190 mph, but it was fast before."

More than 700 Chinese firms took part in the latest IFA, up from 420 a year earlier and accounting for more than 30 percent of the total exhibitors. They showed artificial intelligence-powered home appliances, next-generation displays, innovative robots, and energy storage systems.

The increasing Chinese participation at the IFA highlights growing strengths in cutting-edge technologies and a willingness to expand international cooperation through independent innovation capabilities, according to industry experts.

Regarding next year's IFA, Lindner expects AI to remain the "key driver" for growth, an area where Chinese companies' advantages could further strengthen their European position.

Editor: Martin Kadiev