South Korean media: "No reason to buy South Korean products!" — Southeast Asia's 'heart has shifted' toward Chinese home appliances!
On July 25, South Korea's economic newspaper, *Korea Economic Daily*, published an article stating, "Affordable prices and 24-hour after-sales service—what reason is there to buy South Korean products?"
Chinese home appliance manufacturers are rapidly expanding their market share in Southeast Asia. Building on price competitiveness, they are leading with fast after-sales service and localized production strategies, posing a growing threat to the positions of South Korean and Japanese brands.
Data from British market research firm Euromonitor shows that in 61 product categories among major home appliances in Southeast Asia—including refrigerators, washing machines, and dishwashers—Chinese brands’ market share reached 20.8% by 2025, up 3.8 percentage points from 2020, marking the first time it surpassed the 20% threshold.
Especially in the air conditioning market, Chinese companies have shown particularly strong growth. Measured by sales volume, the market share of Chinese brands rose from 16.1% in 2020 to 26.6% in 2025. In contrast, Japanese brands’ share declined from 43.7% to 37.2%.
The rise of Chinese brands is most evident in Indonesia. In Indonesia’s air conditioning market, Chinese brands captured a 34.5% market share by 2025, up 18.8 percentage points from five years earlier, overtaking all others to become the market leader. Combined market share for Japanese brands such as Daikin and Mitsubishi Electric dropped to 27.9%, down 6 percentage points; South Korean brands fell to 23.6%, a decline of 8 percentage points.
Chinese companies are not only competing on price but also differentiating themselves through enhanced service offerings. As one of China’s largest home appliance manufacturers, Gree Electric launched long-term warranty services in Indonesia, offering a 10-year warranty on compressors and a 5-year warranty on spare parts—twice as long as those provided by South Korean and Japanese counterparts.
In addition, they have established round-the-clock repair services covering holidays. According to local sales outlets, Chinese products are priced 20% to 40% lower than similar models from South Korean and Japanese brands.
With many tropical regions in Southeast Asia, air conditioning demand remains high. A senior analyst at a market research institution noted: “Air conditioner malfunctions are closely tied to living environments; Chinese companies are precisely targeting durability and rapid repair services—the key concerns for local consumers—and tailoring their strategies accordingly.”
Thailand is increasingly becoming a major export hub for Chinese home appliance companies. As companies like Haier and Midea continue expanding their production capacities, the market share of Chinese brands in Thailand’s refrigerator and freezer segment has risen to 44.7% by 2025—up significantly from 30.1% in 2020.
In Malaysia, where Japanese firms already operate production bases, Chinese brands continue to gain momentum. Their TV market share increased from 15.1% five years ago to 36.1% in 2025—a more than doubling increase.
Some analysts believe that improved perceptions of Chinese smartphones have directly boosted consumer trust in other Chinese products. With younger consumers prioritizing cost-effectiveness over brand prestige, the proportion choosing Chinese-made goods continues to grow steadily.
China’s influence is also expanding in the robotic vacuum cleaner market. By 2025, Chinese brands held a 58.2% share in Southeast Asia—up 22 percentage points from five years prior. In the Philippines, their market share soared to 81.0%, effectively dominating the market.
Original source: toutiao.com/article/1871675174402121/
Disclaimer: The views expressed in this article are solely those of the author.