South Korea’s third largest electronics firm Dongbu Daewoo Electronics has been increasing its foothold in the Chinese market with its strategies specifically targeting locals.
The company, which made inroads into China in July 2013, runs 256 dealerships as of July, and plans to open 50 more stores by the end of the year.
Customers look at Dongbu Daewoo Electronics’ products at a dealership in Zhejiang Sheng, China. (Dongbu Daewoo Electronics)
Despite a slump in private consumption in China, the Korean company saw its revenue double in the first half of 2015 compared to the same period last year.
The electronics manufacturer, however, declined to give the exact figures.
A company official said that the firm’s retail channels tailored to each region of the market helped boost the sales. In the metropolitan cities, like Shanghai and Beijing, it mainly sells its products through large retailers while in less populated, but fast growing, cities the firm sells its products via small electronics shops.
Its washing machines and refrigerators, for example, are on sale at 20 retail stores run by U.K.-based retail giant B&Q in Shanghai.
Since Korean products are considered premium by Chinese consumers, Dongbu Daewoo Electronics is conducting marketing promotions which emphasizes that its products are shipped from Korea. All its electronics products sold in China are manufactured at the firm’s plant in Gwangju.
The official said that the company would keep making efforts to appeal to Chinese consumers with electronic products that cater to their tastes.
By Kim Young-won (email@example.com