Selective settings for China wash

"We have achieved outstanding results in Europe and a variety of other markets within a very short timeframe. Our next logical step is to achieve the same ambitious objectives here in China.

"Our business in China has increased consistently by more than 50 percent each year over the past several years.

"As a percentage of our overall turnover, the China component is still limited, but our long-term expansion plans target growth there at a faster pace than that of the company as a whole."

He says it is hard work for foreign brands to develop in China. Beko has spent a lot of time in market research to find out about China's complicated market conditions.

Compared to consumers in Europe, Ambrosi says, Chinese consumer demand is constantly evolving, which requires domestic appliance and consumer electronics companies to keep abreast of changing trends.

"Each market has its own peculiarities. China is the most dynamic of all, the one where the most change has occurred in recent years and the one where we expect most change to continue to take place."

In China, Beko faces competition not only from multinational companies but also strong local electrical appliances makers.

Ambrosi says his company needs to greatly promote its brand visibility as well as cultivating its own competitive edge to survive the fierce competition in China.

"We are well aware how overcrowded the Chinese market is, and that consumers are overwhelmed with all sorts of messaging. But we will not pursue market share by lowering prices," Ambrosi says.

Beko is not an entry-level brand, he says. It is pitched at the mid to high-end market in China, with target consumers it calls the "smart generation" - people who would like to consume modern, innovative and environmentally friendly electronic goods.

Taking Chinese consumers' habits into consideration, Beko has adapted designs and introduced technological innovations to comply with the latest and most stringent energy standards recently implemented in China.

Last year, one of Beko's three-door refrigerators was given an "Innovative Product" award by the China Household Electric Appliance Research Institute because of its ability to store rice without preventing the loss of taste.

This year, the same award went to its new line of washing machines in China, the EcoMore Premium series, for having different seasonal washing programs for spring and summer clothing and fall and winter clothing.

In addition to technological innovations, offering quality at lower prices is also part of the secret of the company's success in the competitive Chinese market. Many of its high-end products incorporating innovative technologies cost less than 3,000 yuan ($490; 360 euros), which for the majority of consumers is no doubt attractive when they consider products by the likes of Germany's Siemens, Japan's Panasonic and China's Haier.

"We look at the competitive landscape in great detail," Ambrosi says. "But we are much more focused on our target consumers. We are confident that if we dedicate ourselves to listening to them and continue to care about them, we will have an advantage over other products on the market."

Ambrosi says he is confident in the Chinese market, but his company will not expand blindly. It will devote itself to optimizing distribution chan-nels and building an after-sales service network.

The company has also made specific plans for a select number of smaller Chinese cities through which to expand its penetration, and has set up sales points in Sichuan, Liaoning and Zhejiang provinces.

"It is part of our distribution expansion strategy that relies on close collaboration with local trade customers and distributors," he adds. "At the same time, our marketing efforts will be very much aligned with this plan in order to maximize our effectiveness in those specific markets.

"Overall, we are still a relatively small player compared with earlier entrants in the Chinese market, but we are ambitious and committed to succeed in the long run."

liulu@chinadaily.com.cn

 

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