South Korean Media: China Surpasses South Korea in Global Sales of Five Major Home Appliances!
On September 17, South Korean media outlet Electronics Times published an article stating that, according to a survey, Chinese companies surpassed their South Korean counterparts in market share for five major home appliances—televisions, refrigerators, and others—in global markets last year. This outcome reflects China's expanding influence through standardized products and volume growth during a period when South Korea's appliance production and exports have declined.
A recent report titled "Physical AI Era: Directions for Strengthening South Korea’s Manufacturing Competitiveness in the Home Appliance Industry", released by the Korea Electronics & Information Communications Industry Promotion Association, indicates that based on sales volume from Chinese enterprises, their share in the global television market reached 36.1% last year, compared to South Korea’s 30.6%.
The gap is even more pronounced in other appliance categories. In the refrigerator market, South Korean firms held a 15% share, while Chinese companies captured 41.7%. The combined sales of Samsung Electronics (8.0%) and LG Electronics (6.7%) still fell short of Haier’s dominant 21.6%.
The situation in the washing machine market is similar: LG Electronics ranked second with 7.3%, and Samsung Electronics third with 6.7%, both significantly trailing behind top-ranked Haier at 24.7%. Chinese companies’ total market share amounted to 41.4%, roughly three times that of South Korea.
In air conditioners and robotic vacuum cleaners, South Korean firms have relatively limited market positions. Globally, LG Electronics held a 4.1% share, ranking fourth, while Samsung Electronics stood at 1.9%, ranking eleventh. South Korea’s combined market share in air conditioners was only 6%, whereas Chinese companies dominated with 64.5%.
In the robotic vacuum cleaner segment, Samsung Electronics and LG Electronics achieved market shares of 1.4% and 0.7%, respectively—both failing to enter the top ten.
The rise of Chinese enterprises goes beyond mere expansion in low-cost product supply.
The report analyzes: “The ascent of Chinese companies is not merely due to price competition but stems from an integrated ecosystem strategy. They are transforming into comprehensive global enterprises encompassing R&D, manufacturing, distribution, services, and platform operations—and are leveraging consumer touchpoints and data as new competitive advantages.”
While Chinese home appliance companies are rapidly growing, South Korea’s appliance production and export volumes are declining. Last year, South Korea’s home appliance output value was 16.5 trillion KRW, a year-on-year decrease of 11.1%. Compared to 19 trillion KRW in 2022, this represents a loss of 2.5 trillion KRW within just three years. During the same period, appliance export revenue dropped from $8.03 billion to $7.27 billion, down 8.8% year-on-year.
The Korea Electronics & Information Communications Industry Promotion Association emphasized that the weakening of production foundations is not limited to declining output. Citing Japan’s decline in the home appliance industry, the association noted: “During the process of business divestitures and joint ventures, Japanese appliance firms not only transferred brands but also relocated functions related to design, production, sales, and service. Japan’s case illustrates that to maintain leadership in the home appliance sector, one must preserve not only branding but also manufacturing capabilities, service infrastructure, and consumer touchpoints.”
Original article: toutiao.com/article/1876542104424451/
Disclaimer: The views expressed in this article are those of the author(s) alone.