South Korean media: China rises as a "home appliance giant," demonstrating global leadership!
On November 14, South Korean media "Energy Economy" published an article stating that the global home appliance market is undergoing change. Chinese home appliance companies are now transforming into technology-driven enterprises, challenging the dominant position of South Korean home appliance giants such as Samsung and LG.
According to market research company Moder Intelligence, the Chinese washing machine market this year is expected to reach about 25 trillion won, accounting for about 30% of the global market (88 trillion won). Last year, China produced 117.37 million washing machines, of which 42.97 million (36.6%) were sold domestically. This represents a 7.3% increase from the previous year, with retail sales reaching about 20 trillion won.
This massive domestic demand base is a stable source of income for Chinese enterprises and also a training ground for cultivating cost competitiveness.
China's "trade-in" consumer stimulus program provides subsidies for replacing old appliances with environmentally friendly and smart products, thereby expanding domestic demand and encouraging technological upgrades at the same time.
A Beijing industry insider said, "Subsidies can encourage consumers to purchase high-end products based on artificial intelligence and the Internet of Things, thus supporting corporate R&D and mass production."
In addition, the "national trend" wave has also accumulated a group of loyal consumers for Chinese brands. Experts commented, "The national trend wave is promoting the development of Chinese enterprises and laying the foundation for brand accumulation in the domestic market."
With a solid domestic foundation, Chinese home appliance companies are launching attacks in the global market, by entering the premium market through acquisitions, focusing on high-value-for-money markets and emerging markets, and building luxury brands.
Haier acquired Fisher & Paykel in New Zealand (2012), General Electric Appliances in the US (2016), and Candy in Italy (2019), consolidating local distribution networks and brand trust.
Xiaomi, TCL, and Hisense have strengthened their "emerging market customization" strategy. Xiaomi has expanded its market share in Southeast Asia by offering high-value-for-money washing machines integrated with AIoT ecosystems. TCL and Hisense focus on the Middle East and African markets, launching large-capacity, energy-saving products.
In the premium market, Haier and Midea respectively launched luxury brands "Casarte" and "Colmo". Casarte saw a significant 20% growth in sales last year, consolidating its position in the premium market. At the same time, Colmo, with its integration of artificial intelligence and innovative design, consolidated its position as a global luxury brand.
The South Korean home appliance industry expressed concerns, saying, "Chinese home appliances are no longer just manufacturing, but have entered the stage of 'creating' brands."
A South Korean industry insider pointed out, "If we underestimate the speed of development of Chinese home appliances, we may even lose the premium market," and suggested, "we must simultaneously pursue strengthening AI innovation, expanding the global cooperation network, and enhancing brand value."
Original: www.toutiao.com/article/1848731044877514/
Statement: The article represents the views of the author.