Chinese appliance manufacturers are expanding their presence in overseas markets through strategies beyond just pricing. Acquiring local companies to absorb technology, brands, and distribution networks, along with increasing local production, has become a common approach.
According to industry sources, Haier has utilized its 2016 acquisition of GE Appliances for $5.6 billion by maintaining existing brands and production and service systems. This strategy has reduced the time and costs needed to build a Chinese brand from scratch, leveraging familiar names like GE, GE Profile, Café, Monogram, and Hotpoint. Currently, GE Appliances employs about 15,500 people in the U.S.
Haier is also expanding local production. This month, GE Appliances announced an additional $1 billion investment in its Louisville, Kentucky, facility, with over $400 million allocated to relocating a dryer production line from Mexico to the U.S. Since 2016, the total investment or commitments to the U.S. have reached $6.5 billion. This strategy aims to respond to tariffs and logistics costs while getting closer to local consumers and distribution networks.
The trend of localization through mergers and acquisitions has also continued in Europe. In 2019, Haier acquired the Italian appliance company Candy, gaining the Candy and Hoover brands along with a European sales network. By operating Haier, Candy, and Hoover together based on regional brand recognition, Haier has accelerated its market entry.
TV manufacturers are rapidly advancing their technology. TCL has established a supply chain from display to finished products based on its panel subsidiary CSOT, making mini LED its main technology for mid-range products. In the first half of this year, mini LED TV shipments reached 2.43 million units, a 77.1% increase from the previous year. Hisense is also expanding its premium product line with large TVs and RGB mini LED technology.
Entering the market with low-cost products and gradually adding local brands, production networks, and premium technology has proven to be a competitive strategy. Samsung Electronics and LG Electronics are also in a position where they need to develop responsive strategies.
An industry insider stated, "In the past, the strength of Chinese companies was seen mainly in price competitiveness, but now they have significantly caught up in local production, distribution networks, and product technology. Korean companies need to clearly demonstrate the technological and service differences that consumers can actually feel, rather than just emphasizing a premium image."
* This article has been translated by AI.
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