Foreign-owned home appliance brands often fall into the Chinese market

After Philips withdrew from its television business in China and Whirlpool air-conditioning commissioned Suning OEM, another 100-year foreign-owned home appliance brand was committed to China.

Recently, the first home appliance brand in Europe Electrolux and Gome signed an agreement to commission Gome to OEM and sell its products in China. According to industry insiders, foreign brands such as Electrolux, Whirlpool and Philips have been declining globally for a century.

Such as eating chicken <br> <br> with many foreign home appliance giant in China as the market for long past the golden age of Electrolux, the Chinese market has become the "eat no meat, discard flavored" tasteless .

Informed sources explained to reporters: “The peak period of Electrolux was in 1997-2003. At that time, Liu Xiaoming was the president of Electrolux China. Using the low price strategy, Electrolux achieved rapid growth in market share. During the period, Electrolux’s share of refrigerators once reached 10% of the entire Chinese market, and accounted for 1/3 of all foreign refrigerator brands.But since Electrolux's headquarters believed that its low price was detrimental to its high-end positioning, Liu Xiaoming was withdrawn. Sri Lanka quickly fell in the slide channel."

According to public information, Electrolux expects sales of air conditioners in China to be about 500,000 units this year. The domestic second-tier brand Oaks, only the cold sales in 2010 has reached 5 million units, is Electrolux's 10 times.

Liu Buchen, an expert in the home appliance industry, believes: “In the situation where domestic white power giants such as Midea and Gree continue to expand, and Oaks Chih-Ling’s second-tier brands are accelerating, it can be said that Electrolux can only deflate in the corner of Gome, but believes itself globally. It is impossible for Electrolux, the first brand of Baiyin, to abandon China's huge market. Therefore, for Electrolux, the Chinese market is like a tasteless chicken dish."

The fate to the United States with respect to <br> <br> Electrolux high-end brand positioning in Europe, North America, Australia and other markets, to enter the Chinese market more than a decade, Electrolux has always been difficult to gain recognition in the high-end market. With the increasingly fierce competition in the high-end market of white power in recent years, Electrolux has always been more difficult to gain a foothold in the high-end market. However, Liu Buchen believes that as Electrolux completely abandons home appliance production in China, its high-end brand image may also be difficult to keep.

In fact, as early as 2009, Electrolux granted its exclusive air-conditioning brand sales rights to Gome. This cooperation extends to Electrolux's full range of products. In the future, Electrolux will no longer be engaged in the production of home appliances in China, and will no longer be engaged in market sales, but only charge brand management fees.

However, Liu Buchen believes that even if it cooperates with Gome, it is difficult to solve the problem of market sales. "Facts have proved that the profits of companies with small market shares relying on big chain channels are necessarily low."

Liu Buyou said straightforwardly: “A foreign-funded enterprise that is neither engaged in production nor engaged in sales can achieve 'blooming of salted fish' in the Chinese market?”

A century of foreign home appliance brand <br> <br> the fall of last year, the century-old Philips also announced the sale of its TV business to TPV production and sales, only charge a franchise fee. Whirlpool signed an exclusive agreement with Suning as early as April 2008 to entrust air conditioners to Suning's exclusive sales. In the short span of four years, there have been three major foreign brands of home appliances have fallen.

Luo Qingqi (microblogging) believes that the reason why these foreign brands are rapidly declining in the Chinese market is: “The layout of foreign brands when entering the Chinese market is too simple. In addition, it is the rapid rise of domestic home appliance companies in just a few years.”

“These brands are declining all over the world. It's just more obvious in China.” Liu Buchen told reporters, “In the 1950s and 1960s, the United States and European brands were strong. In the 1980s and 1990s, the rise of Japan’s home appliance companies came to an end. After 2000, South Korea’s brand has gradually established its position, and in the recent ten years, China’s home appliance companies have developed rapidly, and brands like Electrolux, Philips, and Whirlpool are known abroad as “grandma brands” and are constantly changing. In the process of decline."

Faced with the common dilemma of "grandma brand", some chose to withdraw from the Chinese market; others chose to struggle. It seems that he is unwilling to withdraw, but he struggles hard. Today, Electrolux embarked on an almost gloomy road with Whirlpool, undoubtedly sounded the alarm bell for many old foreign brands.