Another Competition
As Samsung Electronics and LG Electronics compete in the global premium built-in home appliance market worth 50 trillion won (US$45 billion), much attention is being paid to the Korean latecomers in the market where traditional powerhouses such as Millet, Thermador, Sub-zero & Wolf are well established. Premium built-in appliances are considered a super premium category as total prices of household appliance packages and kitchen furniture usually reach hundreds of millions of won.
According to the home appliance industry on September 10, Samsung Electronics and LG Electronics entered competition by strengthening the marketing of premium built-in home appliances at similar times. Samsung Electronics took over Dacor last year and launched the 'Modernist Collection' in March, and LG Electronics began to strike back with 'Signature Kitchen Suite' last year.
The reason for the two companies launched their premium built-in home appliance business at similar times is that they judged that it was time to take advantage of their brand power that they had strengthened while having led the consumer electronics industry since the 2000s. The European and US consumer-oriented built-in home appliance market is dominated by several traditional brands so it is hard for a brand to make a foray into the market.
Samsung Electronics showed its will to enter the European market at the IFA 2017 held in Berlin from September 1 to 6. The electronics giant is aiming to attract local consumers by introducing a lineup of collaboration with high-end furniture brands such as Germany’s Nolte, Italy’s Veneta Cucine and Sweden’s Nobia. On top of that, in Poland, Samsung Electronics broadened consumer contact points by opening a built-in appliance showroom called “Cook-Bye Samsung.”
LG Electronics also doubled the size of its “LG Studio” exhibition hall at the IFA and introduced new products such as a 24-inch induction cooktop and a 30-inch gas cooktop. All of LG Studio's products emphasize luxurious sensibility by applying a black stainless steel material that does not show fingerprints. Prior to this, the “Signature Kitchen Suite” showroom opened in Korea. LG Electronics is planning to more than double the number of its stores by the end of this year.
It is expected that general interior decoration will determine the winner of the competition between Samsung Electronics and LG Electronics. Experts say that the harmony of home appliances and furniture holds the key to built-in home appliances so emotional marketing is more important than functional superiority.