Chinese Appliances Enter Korean Market
Korean firms like Samsung are watching closely as China's largest home appliance manufacturer Haier Group Co. moves into the South Korean market via discount and department stores.
For example, Hyundai Department Store announced it will hold Haier home appliance promotion sales at two of its Seoul outlets on March 4-13. Haier plans to market mainly household appliances that are not locally manufactured like wine refrigerators and small washing machines.
In Korea, Haier has been making inroads through local discount chains like Lotte Mart, Samsung Home-Plus and Carrefour Korea.. The Chinese manufacturer also plans to market small air conditioners costing less than local models.
Established in 1984, Haier is China's biggest home appliance maker, occupying over 30 percent of the country's market. In white household appliances like refrigerators and washing machines, the company ranks first in the world, and in the entire home appliance sector including PCs and cellular phones, is is placed fifth.
Haier plans to expand distribution channels in South Korea by guaranteeing higher margins of around 15 percent. But business sources say Haier's marketing performance is still poorer than expected.
Local household appliance manufacturers like Samsung Electronics and LG Electronics are not letting down their guard, though they believe that Korean customers distrust Chinese products. However, an LG Electronics official said there should be some demand for small refrigerators because the number of single households is rising."
For example, Hyundai Department Store announced it will hold Haier home appliance promotion sales at two of its Seoul outlets on March 4-13. Haier plans to market mainly household appliances that are not locally manufactured like wine refrigerators and small washing machines.
In Korea, Haier has been making inroads through local discount chains like Lotte Mart, Samsung Home-Plus and Carrefour Korea.. The Chinese manufacturer also plans to market small air conditioners costing less than local models.
Established in 1984, Haier is China's biggest home appliance maker, occupying over 30 percent of the country's market. In white household appliances like refrigerators and washing machines, the company ranks first in the world, and in the entire home appliance sector including PCs and cellular phones, is is placed fifth.
Haier plans to expand distribution channels in South Korea by guaranteeing higher margins of around 15 percent. But business sources say Haier's marketing performance is still poorer than expected.
Local household appliance manufacturers like Samsung Electronics and LG Electronics are not letting down their guard, though they believe that Korean customers distrust Chinese products. However, an LG Electronics official said there should be some demand for small refrigerators because the number of single households is rising."
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