1. Introduction: Galanz's Current Internationalization Efforts Recent years have seen a surge in Chinese manufacturers as China has become the “local factory of the world”. Guangdong-based home appliance maker Galanz Group has also evolved globally with China's international growth. Since its inception in 1987 as a textile company, Galanz has developed steadily and rapidly and entered the global market. The company quickly gained significant national market share as it began to focus on its microwave expertise areas in 1992. Galanz has since become the leading company in the microwave oven industry, capturing a domestic market share of 25.1% in 1995 and expanding to 61.4% since 1998. After conquering the domestic market, Galanz entered into the global market through the OEM (Original Equipment Manufacturer) method in 1998. This means that Galanz sells its products to other companies who will rename the products with their own name. OEM has been proven to be a quick method to enter the global market for Galanz, while other parties benefit from low production costs without having to set up their operations in China. Recently, Galanz has started promoting its own independent brand. In Galanz's total export volume from the start of its global operations to 2003, the ratio of independent brands to OEMs increased from 1:9 to 3:7. This demonstrates a change in Galanz's internationalization strategy, shifting the focus to whether consumers recognize Galanz as an independent brand. In addition to its success in the microwave market, Galanz sought to expand its product portfolio, introducing other home appliances thereafter. The company currently has 13 subsidiaries, 52 sales offices in China and branches in Hong Kong, Seoul and North America.2. The Key Factor to Galanz's SuccessIt is indisputable that one of Galanz's strengths is the ability to produce goods at substantially lower costs. However, almost all Chinese manufacturers are cost-effective in terms of producing goods. What makes Galanz surpass other Chinese manufacturers is its initial method of internationalization. The choice to use the OEM method proved to be a crucial success factor. By using OEM, Galanz entered the global market cost-effectively, avoiding the costs associated with promoting its brand and establishing a distribution network. It also allowed the company to use OEM partners' manufacturing equipment to make its own branded products to sell domestically.