Korean Media: Surpassing $5 Billion, Chinese Home Appliances Are Conquering the South Korean Market!

On June 5, Korea Economic Daily reported that Chinese home appliance companies are rapidly expanding into the South Korean market. Analysts point out that these companies are strengthening their previously weak after-sales service networks and focusing on niche markets centered around supplementary household appliances.

According to statistics from the Korea International Trade Association, last year China’s imports of home appliances reached $5.04319 billion—historically the second-highest figure. In the first quarter of this year, the amount amounted to $2.39478 billion, a slight 1.1% increase compared to the same period last year. Sales of certain high-end products have also grown. Data from price comparison website Danawa shows that the market share of Chinese TV brands such as TCL and Hisense rose from 3.5% in August of last year to 6% by April this year—a nearly 1.5-fold increase within just eight months.

The most popular products include vacuum cleaners, air conditioners, and fans—small- to medium-sized household appliances. Last year, China’s imports of vacuum cleaners totaled $584.07 million, up 74% from $335.29 million in 2023. Sales of air conditioners and fans reached $151.49 million and $129.27 million respectively, increasing by 36% and 19.8% during the same period.

South Korea’s imports of Chinese home appliances peaked in 2021, then declined before rebounding starting in 2023. This trend may be explained by consumers once again choosing Chinese products that align with their appliance replacement cycles. The entry of e-commerce platforms like Alibaba and Temu into the South Korean market has also played a role.

Successfully addressing after-sales challenges has been another key factor. Xiaomi opened its first official physical store in Seoul’s IFC Mall on Yeouido Island last June, along with establishing an after-sales service center. Rockstar Technology, which dominates the South Korean robot vacuum cleaner market, has built a nationwide sales network covering approximately 350 stores through its promise of “five years of free after-sales service” and collaboration with Hi-Mart supermarkets.

Original article: toutiao.com/article/1867144506510340/

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