Dominant Position: Dongbu Daewoo Electronics Signs Partnership with Entekhab | BusinessKorea

Monday, January 22, 2018

Customers are looking at Dongbu Daewoo Electronics’s Refrigerator installed with lock
Customers are looking at Dongbu Daewoo Electronics’s Refrigerator installed with lock
SEOUL, KOREA
4 July 2016 - 2:15pm
Jung Min-hee

The Middle East-specialized product of Dongbu Daewoo Electronics is refrigerator with a door lock. The product was invented from understanding the habits of Middle Eastern people who don’t like others touching their personal belongings. Visitors or children cannot access the refrigerator freely. Dongbu Daewoo Electronics unexpectedly hit the jackpot as soon as it released the product in 1998. As of now, its cumulative sales has exceeded 1.5 million units, accounting for more than 60% of the total sales of its refrigerators in the Middle Eastern market.

Dongbu Daewoo Electronics released a new product “hijab washing machine” with the specialized laundry function of “Islamic Rinse” in 2014, targeting the Middle-Eastern Market. The product not only protects the delicate fabric of hijab, but also sticks to the rules in the Koran for washing hijab.

Moreover, considering the Middle Eastern people’s preference to gold color, the Korean electronics company presented first the “gold drum washing machine” and “gold microwave,” attracting attention from the local buyers. In addition, the “cool keeper refrigerator,” which can keep low temperature for a long time, was released as a means of preparation for the power failure occurring in some regions in the Middle East due to its poor electric power situation. It has been selling amidst high acclaim.

Operating businesses centered on the UAE subsidiary along with branches in Teheran, Amman, Riyadh, and Cairo, Dongbu Daewoo Electronics has achieved the success by developing local specialized products after entering the Middle Eastern Market in mid 90s.

Dongbu Daweoo Electronics established the largest home appliance factory on behalf of a local company in UAE. Dongbu Daewoo Electronics signed a technology & facility supply contract worth US$85 million with “NIC,” the biggest home appliance factory in Middle East, which was supported by the UAE government.

NIC, which has sufficient capital but lacking technology and knowledge, had been searching for a partner to operate the home appliance factory. It chose Dongbu Daewoo Electronics who showed the biggest enthusiasm. NIC got 100% share of the factory, and Dongbu Daewoo Electronics was granted with the exclusive rights to supply the design service and construction materials. Dongbu Daewoo Electronics provided every support needed for the production and factory operation including the technology and equipment needed for the establishment of the factory.

The lift of the economic sanction of Iran this year gave wings to Dongbu Daewoo Electronics once more. The company signed a business partnership with the biggest home electronic appliance company Entekhab on May 16. By signing the contract, Dongbu Daewoo was granted with an exclusive supply rights of brand products.

Entekhab, founded in 1988, has over 3,000 employees and 200 stores in 8 major cities in Iran. Dongbu Daewoo Electronics, the only company to sign a product supply contract with Entekhab, has been in a close relations for almost 10 years since 2007.

With the partnership, Dongbu Daewoo Electronics is planning to supply differentiated products such as global platform refrigerator, washing machine, fryer oven, and classic refrigerator. In particular, it will accelerate inroads into the Iranian TV market, while releasing a new LED TV product from this year,

Entekhab Group said it signed the contract once again with Dongbu Daewoo Electronics because the latter’s products are cost effective and suitable for the Iranian consumers who value rational consumption. Also, it is planning to provide local production, promotion and after-services.

With the lift of economic sanction, Dongbu Daewoo Electronics think that it is able to implement aggressive marketing strategy based on the brand awareness gained so far from the long-term relationship with Entekhab. Above all, with the partnership contract, Dongbu Daewoo Electronics is expected to hold a dominant position in product competitiveness compared to local importers, by utilizing Entekhab’s production facility.  

 

 

 

 

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