If you don’t follow major appliance news (and most people don’t) you might not know that several mergers and acquisitions the first half of this year – especially with Asian major appliances companies, will impact the global competitive landscape for appliance manufacturers.
With Harier buying GE, Midea (China’s biggest maker of home appliances) buy a majority stake in Toshiba Corp.’s appliance unit and Samsung‘s recent play for Dacor; it appears to be successful within the appliance industry a company needs to be global.
In addition to being global, these companies need a luxury brand. I have read a report indicating that appliance sales will increase 2.5-3% this year while the luxury appliance segment will see growth of 10-15%.
With this large growth in the luxury segment I expect companies you’ve never heard of will be looking to expand in the US market.
Turkish manufacturing giant Arçelik has plans to expand their Beko brand in the US. Currently Beko’s sleek refrigerators, dishwashers, ranges and laundry pairs are only available in the northeast through retailer PC Richard and & Son.
Beko USA, is a subsidiary of the Turkish conglomerate Arçelik, whose Blomberg brand has been on sale in the US for about a decade. The company promoted Mike Goadby, who founded Fisher Paykel USA, this year to lead the expansion.
“Our aim is to be one of the top three brands in every market we are in. Beko is our leading global brand and is already performing strongly in Europe. We will maintain this, whilst taking the Beko brand to new markets in America and the Asian‐Pacific region.”
With UK economic growth expected to take a hit from BREXIT, it’s a smart move for Beko to look across the Atlantic for further expansion.
I’m sure you’d agree that this Beko Cast by Patricia Urquiola, launched at LivingKitchen is very stylish. It’s easy to overlook the sleek hood as being part of the collection because it looks custom made. (Sigh – not available here)
For now the US offering is pretty small. Appliance choices include 2 dryers, 2 washers, 2 ranges, 10 dishwashers and 12 refrigerators.
This sleek Beko built-in microwave would be a nice offering for American homes.
Another Turkish company Vestel, which has been in the US since he 90’s offering Internet-centric solutions for the home and business, could use some of the channels they’ve built for their internet connected small appliances to expand their appliance market share westward.
Vestel’s styling and ergonomics seem to be on par with what American consumers want.
Note: By the end of this year, Arcelik will have compleed its acquisition of Pakistani appliance company Dawlance for $258 million.
Arçelik, led by its global brands Beko and Grundig, has been extending its global footprint over the past years by acquiring strong regional brands in developing markets. Its 10 brands include Arçelik, Beko, Grundig, Blomberg, ElektraBregenz, Arctic, Leisure, Flavel, Defy and Altus.
Vestel Group is comprised of 24 companies operating in manufacturing, software and technology development, marketing, and distribution fields in the consumer electronics, household appliances, mobile technologies, LED lighting, and defense industries. Vestel exports its products to 149 countries under the leading Japanese and European brands.