By Kim Yoo-chul
Staff Reporter
Haier represents China's ambition to break through the ranks of global home appliance makers and help promote the banner of "Made in China" sweeping the world's consumer market.
That ambitious plan doesn't appear to be gaining much ground, if the situation in the Yongsan electronics market in Seoul, a supermarket for gadgets and home appliances, is any guideline. Quality and after-sale service networks as well as the strong presence of Korean makers are emerging as key culprits thwarting the Chinese’ company’s expansion here.
"I don't want to say there are serious technical flaws on Haier-branded products. But the point is a growing number of consumers come to the shop asking for a full refund," said Kim Jin-woong, who sells the Chinese products in Yongsan electronics shopping center, in an interview with The Korea Times, Monday.
"Repeated reports of explosions or malfunctions in refrigerators and PCs make potential consumers reluctant to buy Haier-branded products," Kim said, adding questions over the safety of Haier's consumer electronics gadgets are on the increase.
With cheaper prices, Haier is strengthening its marketing in Korea, Japan and as well as in North America. The Chinese brand is hoping for better penetration into the tech-savvy Korean market with what the company says is tailored products ― from wine storage units, refrigerator to washers.
"I asked one of Haier's service centers to repair the W15 notebook as the product malfunctioned just a week after purchase, however, they returned my laptop with minor repairs," said Mo Eun-jung, a 24-year-old senior student at Seoul's Korea University.
"My friends say Haier's notebooks are attractive in terms of price. But they need to improve their quality and to strengthen after-sales channels to survive here," she said, adding the increasing marketing budget will burden the maker.
Haier officials declined to comment on the complaints.
The Qingdao-based group aims to post over 100 billion won or some $108 million in sales in Korea this year through sales of flat-panel TVs, PCs, and air-conditioners with affordable prices.
Haier Korea, which started business in Korea in 2004, has seen its sales here more than double every year on good performance of low- and mid-priced consumer electronics products.
Diao Yunfeng, chief of its overseas business division last December said the group will increase its number of after-sales service centers to 300 in a partnership with local outlets this year. Currently, it runs 80 such facilities.
Industry experts say they have seen some improvement in quality in the brand's products. But the Chinese player is urgently tasked to set up detailed after-sales strategies to tackle a decreasing market share in Korea, where Samsung Electronics and LG Electronics take up the biggest portion of the nation's home appliances segment.
"After-sales policy is the top priority for consumers in Korea. Haier products are less competitive than Samsung and LG in terms of technology. Personally, Haier should focus on caring for consumers with 'policies' not to appeal with 'images'," said an official from LG Electronics.