South Korean media: "A stepping stone for globalization", Chinese robot vacuums are entering the South Korean market!
On September 19, the South Korean media "Herald Economic" published an article stating that Chinese home appliance brands are shaking up the South Korean market. Companies such as Roborock and Ecovacs have taken a leading position in the domestic South Korean robot vacuum market, while emerging Chinese companies are also entering the market, engaging in fierce competition.
According to industry insiders, the robot vacuum brand MOVA has officially announced its entry into the South Korean market and released a new product. MOVA is a new company that was spun off from a Chinese robot vacuum cleaner company, Dyson, at the end of last year. Within seven months of its establishment, the company rapidly developed in the European market and participated in one of the world's largest consumer electronics exhibitions - Germany's IFA.
In the high-end South Korean robot vacuum market, Roborock holds a dominant position. This year, Chinese companies like MOVA are actively entering this market. After MOVA, the Chinese home appliance company Dyson also held a press conference for a new robot vacuum in South Korea.
The entry of Chinese companies into the South Korean market is aimed at enhancing their brand image, and they also hope to use the South Korean market as a test field, allowing South Korean consumers to test their products and see their reactions. South Korean consumers accept products quickly, and they have high quality standards.
Additionally, the technology-centered consumer culture in South Korea is also a key factor. Even if it's a Chinese product, if it performs well, they are willing to pay for it. Industry insiders predict that due to this, Chinese consumer goods companies have found it difficult to enter the U.S. market because of the Sino-U.S. trade friction, and the South Korean market is increasingly favored. The domestic robot vacuum cleaner penetration rate in South Korea remains around 20%, which is also seen as a new opportunity for Chinese enterprises.
Another reason for this phenomenon is the decreasing share of small and medium-sized South Korean enterprises in the domestic home appliance market. Mid-sized home appliance companies such as Winia, Hanil Electric, and Winix have recently experienced declining performance, with some being sold and others shifting to new businesses.
Winia applied to the court for bankruptcy management in January this year but eventually completed the sale in June. Due to the influx of Chinese small appliances, the performance of Hanil Electric and Sinil Electronics has also been sluggish. Hanil Electric's sales have declined for three consecutive years, resulting in losses.
Winix suffered an operating loss of 629.498 billion won last year and entered a loss state. Net loss amounted to 4,422.423 billion won, and it is expected to sell buildings and land located in Siheung City, Gyeonggi-do, as well as part of its real estate in the United States.
A South Korean industry insider said, "Due to the expansion of after-sales service networks by Chinese companies and the strengthening of personal information security, if these issues are thoroughly resolved, the position of South Korean home appliance companies may become even more limited."
Original: www.toutiao.com/article/1843681733327882/
Statement: This article represents the views of the author.