When BSH Home Appliances established a sales company in Nanjing in 1997, the German appliance giant had been in China for just three years.

BSH’s growth in Nanjing can be summarized in three phases, according to Simon Song, President of BSH Greater China. “The first decade was about building a solid manufacturing base, the second about expanding our product range and strengthening our brands. The most recent decade has been about innovation.”

Throughout, one aim has remained constant: building a complete value chain in China.

From manufacturing to headquarters, step by step

BSH entered China in 1994 with a washing machine factory in Wuxi. A refrigerator factory followed in Chuzhou in 1995, then the Nanjing sales company in 1997.

In 2004, BSH invested in a home appliance park in Nanjing, bringing together R&D, manufacturing and logistics – marking another major expansion by the company in the city. BSH China holding company was established in Nanjing in 2010 and recognized in the following year as Nanjing’s first multinational regional headquarters, and one of the first batch in Jiangsu.

In 2020, BSH opened a new R&D center building in Nanjing with an investment of 400 million yuan, making it the company’s largest comprehensive R&D center worldwide. In June 2024, BSH signed a strategic cooperation memorandum with Nanjing municipal government, upgrading its China R&D center to a global R&D center and establishing a China home appliance talent center.

Throughout this process, Nanjing municipal and district authorities provided full-process services – from policy guidance and site selection coordination to headquarters recognition, offering a replicable model for other multinationals establishing regional headquarters in Nanjing.

Nanjing’s role in BSH’s global footprint has been continuously upgraded, from a manufacturing base to its China headquarters and a global R&D center.

Why Nanjing?

Asked why BSH chose Nanjing for its China headquarters, Simon Song pointed to three key words, talent, logistics and ecosystem.

“Nanjing has excellent universities and a strong talent pool, giving us a solid foundation for long-term development,” he said. 

The city’s location in the Yangtze River Delta offers clear advantages as a transportation hub with sea, land and air connections. Home appliance suppliers are concentrated in Nanjing and nearby cities, while retailers including Suning and Five Star are headquartered there.

“With the ecosystem, the talent and the transportation links in place, what matters most is the business environment,” Simon Song added. “Over nearly three decades, governments at all levels, from the province to the municipal, district and sub-district levels – have given us considerable support.”

Developing in Nanjing, Reaching the World

BSH’s Global R&D center in Nanjing employs about 700 engineers, working on projects for both China and global markets.

“Initially, our work focused more on bringing global R&D projects to China. Now we also develop technology for the rest of the world,” Simon Song said.

Core technologies for large-capacity refrigerators and washer-dryers are developed by China-based R&D teams and exported to the world. The Nanjing R&D center now holds more than 1,000 patents in force, nearly 40% of which are inventions.

Localization is also deepening. On products, BSH has also developed a steam drawer for Chinese consumers, which BSH describes as a world first, and active-oxygen disinfection technology for washing machines.

Local suppliers are becoming more closely involved, too. Nanjing Panda Electronics has worked with BSH on lighting systems and other components since 2019. “We want to do more than source locally,” Simon Song said. “We also want to bring local suppliers into our global supply chain and help them grow.”

Building Capacity for Future Development

The home appliance talent center established in 2024 serves three main functions: trains BSH employees, works with retail and distribution partners to develop industry talent, and supports industry-academia-research collaboration with universities.

“Nanjing’s universities are naturally our first choice for recruitment,” Simon Song said. Their graduates account for about 20 per cent of BSH’s annual graduate intake. The company also recruits sales management trainees from universities across China and plans to launch a strategic management trainee program open to graduates worldwide.

AI is being used across BSH’s operations, from simulating consumer responses during product development to scheduling production, managing equipment and inspecting product quality. Other uses include creating marketing materials, training sales advisers and handling after-sales enquiries through AI agents. “AI is now everywhere,” Simon Song said.

Growing with the City

After nearly three decades in Nanjing, BSH has both witnessed and benefited from improvements in the city’s business environment, Simon Song said.

He hopes to work with government and industry organizations to create innovation platforms bringing together BSH, its suppliers and other partners. He also wants to help build a stronger home appliance industry cluster based in Nanjing. “This requires joint efforts from the government and us – a two-way commitment.”

“Investing in Nanjing is investing in the future.”

From a sales company in 1997 to its China headquarters and a global R&D center today, BSH has spent nearly three decades deepening its root in Nanjing. The company has grown with the support of the city’s industrial base, talent pool and business environment. In turn, its investments in R&D, people and local suppliers have helped Nanjing build the capabilities that support its continued growth.