Lotte Himart’s Single One refrigerator, launched in May, was a surprise success, with the initial 3,000 units selling out within just two weeks. (Image courtesy of Lotte Himart)
SEOUL, Jul. 8 (Korea Bizwire) – In a surprising turn of events, private label (PB) home appliances are making significant inroads into the South Korean market, traditionally dominated by major corporate brands.
This trend, driven by cost-conscious consumers amid high inflation, is reshaping the landscape of the home appliance industry.
A prime example of this shift is the remarkable success of Lotte Himart’s PB brand HiMade. The company’s Single One refrigerator, launched in May, was a surprise success, with the initial 3,000 units selling out within just two weeks.
Priced under 300,000 won, this 245-liter double-door model caters to the preferences of one to two-person households with its focus on essential functions and practicality.
According to Lotte Himart, HiMade products showed average annual sales growth of 20% from 2019 to 2023. The brand’s share in overall sales also increased from 1% to 4% during the same period.
Particularly noteworthy is the recent strong performance of PB large appliances. In the first half of this year, HiMade products ranked in the top 5 for sales in categories such as wall-mounted air conditioners (6 pyeong or less), LED TVs (32 inches or smaller), and washing machines (12kg or less).
In the first half of this year, over 10,000 units of E-mart’s Electroman and No Brand PB TVs were sold. (Image courtesy of Emart)
A similar trend has been observed at E-mart’s appliance store, Electromart. In the first half of this year, over 10,000 units of E-mart’s Electroman and No Brand PB TVs were sold, competing head-to-head with established brands. Models priced around 200,000 won (32-inch) and just over 300,000 won (43-inch) led sales.
The primary appeal of these PB appliances lies in their combination of reasonable quality and affordable pricing. They are typically up to 40% cheaper than comparable products from established brands.
This is achieved by partnering with technically competent small and medium-sized enterprises for development and manufacturing, minimizing distribution stages, and focusing on core functions rather than complex features.
The strategy of targeting the growing demand from one to two-person households, particularly those in their 20s and 30s who prioritize value for money and practicality, has also proven effective.
In response to this trend, companies are ramping up their efforts. Lotte Himart is currently undergoing a comprehensive renewal of its HiMade brand, including branding, design, and development capabilities.
E-mart’s Electromart is expanding its PB product line, recently launching a popular 27-inch portable TV in collaboration with TG&Company, a small appliance manufacturer.
Ashley Song (ashley@koreabizwire.com)
