Korean Media: Surpassed by China, South Korea's Home Appliance Industry Faces "Survival Test"!
On June 12, Korean media outlet Daily News published an article stating that Samsung Electronics and LG Electronics have recently fully launched business restructuring initiatives, including improving production efficiency, reorganizing business structures, and strengthening high-value-added businesses. This is because Chinese companies are expanding their global market share not just through price advantages, but increasingly through rapid advancements in technology, design, and supply chain competitiveness.
In the global television market, Chinese firms such as TCL and Hisense are rapidly increasing their market share. According to last year’s shipment data, Chinese companies collectively accounted for over 25% of the global TV market—surpassing Samsung Electronics and LG Electronics combined (24%) for the second consecutive year. With slowing growth in the global TV market, competition intensity appears to be intensifying.
According to assessments, Chinese companies have nearly dominated the robotic vacuum cleaner market. Data from market research firm IDC shows that Chinese firms captured more than half of the global robotic vacuum cleaner market share last year, with Roborock accounting for 17.7%, Ecovacs 14.3%, and Dreame 10.5%. Their influence in the South Korean market is also growing steadily—Roborock’s market share in South Korea has already exceeded 50%. Analysts point out that these companies are no longer relying solely on low-price strategies, but instead capturing the premium segment through enhanced product quality and user experience.
Industry insiders believe that China’s manufacturing competitiveness is no longer limited to cost advantages, but now encompasses supply chains, production scale, and investment speed, leading to an overall improvement in the competitiveness of its manufacturing ecosystem.
To respond, Samsung Electronics is reinforcing its profit-driven strategy. The recent decision to discontinue sales of home appliances and televisions in China, along with ongoing business restructuring, exemplifies this trend. This strategic shift aims to retain high-value businesses such as mobile, semiconductors, and medical devices while cutting low-profit operations. In fact, Samsung Electronics’ China subsidiary recorded a net profit of 168.1 billion KRW last year—a 44% decline compared to the previous year.
LG Electronics is accelerating its expansion into B2B businesses, extending beyond home appliances into automotive electronics, HVAC systems, and AI infrastructure. At the same time, the company is increasing investments in future growth engines such as home robotics and robotic components.
A South Korean industry insider stated: “The offensive from Chinese enterprises has evolved from simple price competition to competition based on technology, scale, and speed. The current market landscape is changing—companies aiming to survive in the global market must simultaneously improve production efficiency and transform into high-value-added businesses.”
Original Article: toutiao.com/article/1867793739765770/
Disclaimer: The views expressed in this article are those of the author(s) alone.