Electrolux, a global home appliances market leader, is unfazed by competition from cheaper regional competitors and expects a double-digit growth this year, said Electrolux household appliances Singapore & Malaysia general manager Koh Soh Hoie.
“In terms of competition, you can’t deny that there is stiff competition from the Japanese and the Koreans, but we don’t intend to compete on price but more on the brand and the reliability of our products.
“In (kitchen) appliances, we’re cornering a significant market share (in Malaysia), over 60%. We have targeted a very strong growth this year, which is in line with the market’s growth and we definitely want to grow faster than the market,” he added.
While he would not reveal those figures, Koh said the market was expected to grow at about 15% this year.
“There is no independent (body) that tracks this (market) share. This is our own internal tracking based on a census with the suppliers and some numbers from the Statistics Department.
“In this industry, it is difficult to measure market share of kitchen appliances based on category, rather it is measured by products and it is hard to estimate the value of the Malaysian market due to the influx of parallel imports into the Malaysian markets,” he added.
Koh said such imports had “completely messed up the whole market” and made it difficult for any company to take a strong market share.
“With globalisation, everyone can go to China, source a product, re-brand it, come in and tomorrow change the name and come in again,” he told reporters at Electrolux’s regional launch of a new range of kitchen appliances in Kuala Lumpur on July 14.
The launch saw the Swedish company introducing new hobs, hoods, ovens, microwaves, refrigerators and dishwashers designed for the Southeast Asian markets.
The products have already hit the market and prices range from RM500 for an entry-level hob to about RM3,000 for an oven.
“The consumer has a mindset that Electrolux is a very premium and very expensive brand, which is not really right,” said Koh.
“We have everything from the entry level to the high end. We want the consumers to come to us to see the product, to try the product and see that it is a value for money product,” he added.
Currently, Koh said, Electrolux retails its products through about 700 and 800 point-of- sale retailers as it does not have its own network of exclusive dealers. He said the company wanted to increase this number further but within limits.
“We are very selective about our distribution. Part of our job is to ensure our partners’ profitability. We also need to ensure the quality of the outlets,” he added. He also said that in 2004, Electrolux had about 600 points of sales.
From The Edge Daily