'Capturing Both Consumer Hearts and Wallets'... Home Appliance Industry Launches Two-Track Strategy

Nobita Sterilizing Bidet ‘BD-H700’ (left), Side Panel Type ‘BD-H500’ (right). [Photo by Kohler Nobita]

[Asia Economy Reporter Kim Jong-hwa] The home appliance industry is accelerating its 'two-track' strategy that captures both emotional value and cost-effectiveness. This move follows predictions that consumer behavior, which favored premium appliances driven by emotional value during the two-year COVID-19 special demand period, will shift towards more cost-effective consumption activities as the government declares a transition to endemic status.

As a result, home appliance stores prominently display private brand (PB) products alongside premium appliances from major companies such as LG and Samsung Electronics. This display marketing strategy targets both emotional value and cost-effectiveness by exposing not only premium appliances but also PB brands. Lotte Hi-Mart’s PB brand ‘Hi-Made’ sales grew by about 20% from January this year to the 12th of this month compared to the same period last year. The industry expects Hi-Made’s sales this year to increase by 50% compared to last year, and Hi-Mart has announced plans to expand its PB lineup according to consumer demand. Besides Hi-Mart, various home appliance brands are implementing the two-track strategy. They are releasing cost-effective basic models equipped only with the main features of popular premium appliances that have been verified by consumers. Conversely, there is also a trend of releasing premium models with upgraded main features following the launch of general models.

Kollernovita’s ‘Sterilizing Bidet’ Successfully Targets Cost-Effective Demand Following Premium Model Sell-Out

Kollernovita launched the premium bidet ‘Sterilizing Bidet (BD-H700)’ in February last year, which gained explosive popularity. Earlier this year, they introduced the side-panel model ‘Sterilizing Bidet (BD-H500)’ with enhanced cost-effectiveness. It features an ‘automatic sterilization’ function that sterilizes harmful bacteria breeding inside and outside the nozzle and within the ceramic once a day, compressing the key functions of the sterilizing bidet into one product.

The premium sterilizing bidet, released first, sold out two months’ worth of stock in just 35 minutes during a launch commemorative live shopping event, and its sales in the fourth quarter of the same year increased by 566% compared to the first quarter, maintaining its popularity. The subsequently released side-panel model also captured cost-effective demand by achieving 216% of its target sales during the launch live shopping event in February. Kollernovita is actively pursuing a diverse customer base by additionally launching a rental model of the premium sterilizing bidet, ‘Sterilizing Bidet (BD-H730).’

Lee Hyun-sik, Marketing Executive Director of Kollernovita, said, “Adapting to changing consumer demands, dispersing the business focus that was centered on premium products, and presenting new trends to seize the market key will be the home appliance industry’s challenge this year. Kollernovita is targeting comprehensive consumer demand satisfaction by simultaneously offering premium and side-panel sterilizing bidets through various sales channels such as shopping live.”

Pasco 'Premium Window Air Conditioner'.
Photo by Pasco

Paseco Launches Premium Model of ‘Window Air Conditioner’: “Back Stronger Than Ever”

There are also cases where premium models with upgraded main features are released following general models. Paseco introduced the country’s first vertical window air conditioner in 2019. Last year, it recorded sales exceeding 100,000 units, significantly contributing to Paseco’s overall revenue.

In March, Paseco achieved a fourfold increase in window air conditioner sales compared to the same period last year, and in April this year, it launched the 2022 premium window air conditioner model. The new model offers easy and quick installation, improved noise reduction, and upgraded cooling functions. It also incorporates Internet of Things (IoT) technology, allowing users to conveniently set desired temperature, wind strength, and power on/off through the Paseco Smart Home app.

This content was produced with the assistance of AI translation services.