Blue Ocean '28 Trillion' European Built-in Appliances... Samsung and LG Battleground

Samsung Bespoke and LG Signature Kitchen Suite
Samsung Unveils Bespoke Infinite at IFA

The front view of Messe Berlin, where IFA, Europe's largest electronics fair, is held. (Image source=EPA Yonhap News)

[Asia Economy Reporter Moon Chaeseok] At 'IFA 2022,' Europe's largest home appliance exhibition held early next month, renowned home appliance brands such as Samsung and LG will actively target the European built-in market. Although China is pursuing with low-price offensives and technological advancements, this market, considered a 'blue ocean' with relatively less pressure for several years, is also a battlefield densely occupied by strong players like Miele and Bosch. Samsung and LG's winning strategy is a 'premium' approach.

On the 28th, Samsung Electronics announced that it plans to showcase new products from its premium home appliance lineup, 'Bespoke Home,' at IFA 2022, which will be held on October 2 (local time). It will also exhibit the top-tier home appliance line 'Bespoke Infinite,' which was previously released only in Korea. The 'Bespoke Oven' is scheduled to be launched in major countries such as the UK, France, and Italy in the third quarter. It has been praised for elevating the product's class by applying the 'Auto Open Door' feature, which allows the door to open simply by touching the control panel without a door handle. The Bespoke Infinite to be showcased at IFA is planned for release in Europe this December.

LG Electronics is adopting a similar strategy. In June, it participated in 'EuroCucina 2022,' an exhibition event held during Milan Design Week in Italy, showcasing its 'Signature Kitchen Suite.' This lineup combines an oven package, induction cooktop, 24-inch drawer-type wine cellar, and 48-inch built-in French door refrigerator. Ryu Jae-cheol, Vice President and Head of LG Electronics H&A Business Division, who is scheduled to attend IFA, said at the time, "We will strengthen the position of Signature Kitchen Suite in Europe, the home of premium built-in appliances, and expand the built-in business." However, LG Electronics did not mention plans to unveil new built-in home appliances at IFA 2022.

Built-in home appliances refer to furniture that leaves only the necessary functions visible on the exterior while placing the rest inside. This concept is being expanded to product categories such as refrigerators, washing machines, and ovens. As single-person households increase and space configurations become increasingly compact, built-in appliances are characterized by not occupying large visible areas, making them suitable for interior design. Europe’s uniquely narrow housing structures have allowed built-in appliances to thrive, and now Korean companies are stepping up as challengers.

According to market research firm Euromonitor, the global built-in market is approximately $60.4 billion (about 81 trillion KRW) in size. The European market accounts for 37% of this, about $22.4 billion (approximately 30 trillion KRW).

Both companies have challenged the European built-in home appliance market since around 2018, the early days of IFA. The industry consensus is that the reason for competing against European products in their home turf is the perception that it is a 'blue ocean' with relatively less pressure from Chinese competitors. The concept of integrating kitchens and appliances by linking the furniture system itself to IoT (Internet of Things) means they do not have to focus solely on 'price competitiveness' or 'production efficiency.' This is similar to how a complete electric vehicle company sells not only the car but also the OS (operating system). This approach is expected to somewhat escape the low-price competition chicken game. However, the presence of strong local players like Miele and Bosch remains a challenging factor for companies.

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