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South Korean Electronics makers target built-in appliances market
:: 08 March, 2007
Local electronics companies, including the two giants LG Electronics and Samsung Electronics, and small- and medium-sized companies, are competing to grab a bigger share of the built-in appliances market, industry officials said yesterday.
Built-in appliances, ranging from a set of kitchen ware, to combinations of washing machines and driers, to an eco-friendly vegetable washing sink, have recently been receiving a lot of attention from Korean housewives, especially after the government eased regulations on home renovations in November last year, they said.
"Now family members want their living room and kitchen to look neat and tidy, unified in colors and with similar designs. That's what we are looking at," said Kim Hyung-jong, an official at LG Electronics, said.
LG Electronics, which leads the home appliances market in Korea, has recently released a new built-in appliances brand - DIOS Built-In. Customers can select the number and the order combinations of refrigerators, freezers and kimchi refrigerators depending on their lifestyles, food preferences and home interior, LG said.
"From 2002 to present, LG has recorded an annual growth of 80 percent in terms of built-in appliance sales and it will continue to grow," LG's Kim said.
"When we consider people change their furniture and home appliances every 10 years on average, the changing season is imminent now because built-in appliances first made their appearance in 1999," he said.
Industry watchers estimate that the volume of the built-in appliances market will grow to 650 billion won this year, up 20 percent from 550 billion won last year.
Samsung Electronics, which launched a premium built-in package in partnership with Italy's high-end kitchen appliances maker Salvarani in February last year, is also strengthening their marketing on built-in appliances in the local market.
"We focus on B2B (business to business) marketing, dealing with construction businesses that are renovating homes or building new apartment buildings," said Chae Hee-kook, an official at Samsung Electronics.
Samsung Electronics is conducting "experience marketing" at over 100 air conditioning showrooms across the nation, hoping to introduce their built-in appliances to more customers, according to the company.
Meanwhile, the rising demand of built-in appliances is also good news to small and medium sized electronics companies like Ciko Inc, which specializes in the built-in products.
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