By Kim Yoo-chul
BERLIN ― Miele, a leading brand in luxury consumer electronics devices, is facing an increasing challenge from Korean technology giants Samsung Electronics and LG Electronics in the market for premium products, according to one of the company’s top executives.
Reinhard Zinkann Jr., managing director and co-owner of the German company, said that the improved brand reputation of Samsung and LG, as well as the strengthened diversity of their product lineups, have them emerging as forces in the market for high-end domestic appliances.
"Korea is a nation of technologies, and I understand the standards set by Samsung and LG. I see a lot of competition coming from both companies," said Zinkann in a news conference with Korean reporters at the IFA conference in Berlin.
"The Korean appliance industry is indeed a benchmark. I believe in the growth potential of Korea as well. They believe in quality and technology and are willing to pay for that," he said.
Miele, established in 1899 by Carl Miele and Reinhad Zinkann, still remains a family-owned and operated company. It produces a variety of premium products such as ovens, dishwashers, washing machines and vacuum cleaners.
Zinkann said Samsung and LG base their core strengths on televisions and handsets, although he was confident about Miele defending its presence in the niche market for high-end appliances.
"We have a niche we're good in," he said.
Zinkann didn't reveal any investment plans for Korea, saying that the company isn't interested in spending on manufacturing lines, although establishing regional distribution channels and sales networks could be a possibility.
"We will need a distribution channel to get a touch for the market," Zinkann said.
"More Koreans are looking for brands that could give them a special lifestyle and special value. It's important to sell products, but Miele is also selling value, image, quality, durability and technology."
"China is a fast-growing inner economy in the world. But I believe Koreans have shown in the last 40 years that they are the top providers and consumers of technology."