A TV priced at 10 million won, and a robot vacuum cleaner at 2.29 million won. These are the prices of premium products offered by Chinese home appliance manufacturers. Chinese home appliance maker TCL unveiled an "85-inch premium TV" in the U.S. market, while Dreame is selling its robot vacuum cleaner, the "Matrix 10 Ultra," domestically. Chinese companies, which had previously targeted markets with low prices as their weapon, are now issuing challenges to Samsung Electronics and LG Electronics even in the high-end product segment.
Samsung Electronics and LG Electronics have long led the global home appliance market. Core component technology, manufacturing capabilities, and brand trust were the foundations of their competitiveness. Recently, they have focused on differentiation by leveraging AI (artificial intelligence) home appliances and premium products. However, as Chinese companies concentrate their efforts on improving product performance, the competitive landscape is shifting. With more products available for consumers to choose from, it has become difficult to drive purchases based solely on existing technological superiority.
The fact that technological prowess does not guarantee market success can also be seen in the case of Japan's Sony. Sony, which had led the global TV market with its unparalleled cathode ray tube technology, fell behind in the market transition to flat-panel TVs and ceded its top spot to Samsung Electronics in 2006. While resting on its technological advantage, consumer demand and the market's competitive structure changed. Samsung Electronics and LG Electronics, which had once overtaken Japanese companies, now find themselves in a position where they must respond to the pursuit by Chinese firms. If technological competitiveness cannot be translated into consumer purchases and profits, market leadership can change at any time.
The solution to responding to China's pursuit cannot simply be offering more expensive products or adding more AI features. What consumers want is not the technology itself, but the changes that technology brings. How much a new feature reduces household burdens or lowers energy costs can become the deciding factor in a purchase. Creating technologically superior products and presenting products that consumers are willing to pay for are separate issues.
The technological capabilities and brand value accumulated by Samsung Electronics and LG Electronics remain powerful assets. However, with Chinese companies entering even the premium market, it is difficult to guarantee future performance based solely on past competitiveness. Now is the time to go beyond merely emphasizing technological superiority and ensure that consumers feel that difference in their daily lives, leading to purchases. Being No. 1 in the past does not guarantee being No. 1 in the future.
in INDUSTRY
