OFweek Smart Home Network News Toshiba Lifestyle Inc., a subsidiary of Midea Group, will sell “Toshiba†brand white goods in China, and plans to use the 2,200 stores and e-commerce sites owned by Midea in the entire country. The Toshiba-branded white goods withdrew from sales in China in 2015. It will use the acquisition of Midea in 2016 as an opportunity to re-enter the Chinese market.
As the first products to return to China, the Toshiba-branded microwave oven jointly developed by Midea and Toshiba Lifestyle will be launched in July. The microwave oven is equipped with a menu that selects pudding or steamed egg, and can automatically heat cooking functions, which is different from the low-price beauty brand products that only have basic functions. The price level is expected to be the same as in Japan, which is approximately 160,000 yen (approximately RMB 9606). This microwave oven is manufactured by Toshiba Lifestyle.
We will also consider introducing refrigerators in the future. Toshiba brand home appliances will be positioned as the highest-end product in Midea Group's product group.
Midea owns more than 2,200 stores in China, and also sells about 5,000 home appliance stores to Suning Yunshang Group. The Midea and Toshiba lifestyles will use these sales networks to sell Toshiba branded products throughout China.
In addition, sales in China will also rely on e-commerce. In addition to the US e-commerce website, it will also be sold on major e-commerce sites such as Tmall International.
Midea's sales for the entire year of 2016 is converted into approximately 2.582 trillion yen in Japanese yen. Toshiba’s lifestyle has contributed 124.0 billion yen in the second half of the year alone. The Toshiba lifestyle will put China’s sales on the right track and strive to turn a profit in 2017.
Toshiba branded home appliances were sold by Toshiba in China before 2015 and later withdrew from the Chinese market due to continued poor performance. As part of the restructuring of white goods, Toshiba entered into a partnership with China Skyworth Group in 2015 and plans to promote cooperation in the production and sales of white goods. However, with the white goods division entering the U.S. flagship in 2016, the company plans to release the cooperation with Skyworth in the future.
According to data from Euromonitors, a British investigation company, China's white goods market scale (sales) increased by 2.5% year-on-year in 2016, reaching 10.469 trillion yen when converted into yen, which is equivalent to Japan’s 3. 5 times. China’s income levels are constantly rising, and the demand for high-quality and high-quality home appliances is growing.
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