When Will Built-in European Conquest Happen... Korea's Struggles in the Battleground of 'Kitchen Appliances'

Declared Top Rank in 2023, but Not Easy

LG Electronics' ultra-premium built-in 'Signature Kitchen Suite'. (Photo by LG Electronics)

[Asia Economy Reporter Moon Chaeseok] Several years ago, a domestic company announced plans to conquer the 'European built-in' market starting in 2023, but it has yet to achieve significant results, revealing difficulties in the 'kitchen appliances' sector. Since a successful localization strategy is essential and premium appliance companies like Germany's Miele hold a dominant market share, many express concerns about the challenges.

According to the industry on the 11th, LG Electronics announced multiple times that it would rise to the top tier of built-in appliances around 2023 but has not shown clear achievements. Ryu Jaecheol, Vice President, who attended the 'IFA 2022,' Europe's largest home appliance exhibition held for five days from the 2nd (local time) in Berlin, Germany, only stated, "We will develop built-up (new products) within the year." It was not specified whether this referred to the kitchen appliances sector or the previously strong refrigerator and washing machine categories.

Among these, the 'kitchen appliances' sector is identified as one where localization strategies are absolutely necessary and securing loyal customers is difficult. It is a sector where domestic companies face somewhat more challenges compared to refrigerators and washing machines. According to a representative from Miele, a leading European premium kitchen appliance company, conquering the European market will not be easy without concrete soft-landing plans such as localization strategies.

The problem is that, according to announcements from Samsung Electronics and LG Electronics so far, there has been little mention of kitchen appliances. Considering that built-in appliances are 'package appliances' that combine several products, there is a concern that they might end up in the worst-case scenario of having only the platform (Samsung SmartThings, LG ThinQ) but failing to sell package products.

Ina Raukote, Vice President of Miele's Kitchen Appliances Division, said in an interview with Asia Economy, "Miele is definitely focusing on built-in appliances rather than freestanding devices in the kitchen appliances sector, and we believe there is potential in that market." She added, "'Kitchen appliances' is a market where cultural differences and gaps in understanding customer habits between Asia and Europe clearly exist."

She said, "The biggest difference when Asian companies, including Korea, enter the European market, especially the kitchen appliances market, is 'cooking habits,' and overcoming this will be key." She gave an example, "In Asia, unlike Europe where baked dishes are common, people prefer gas cooking appliances with strong heat output needed for stir-frying rather than ovens and induction cookers. Even if high-quality appliances are offered to European customers accustomed to ovens, it will not be easy."

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