Miele to expand presence in Korea

By Kim Yoo-chul

Miele CEO Reinhard Zinkann

SARDINIA, Italy ― Miele plans to increase its presence in Korea by expanding its luxury lineup to attract wealthy customers, according to the head of German-based premium home appliances maker, Sunday, local time.

At a meeting with Korean media at the IFA global press conference in Sardinia, Italy, Sunday, Miele Group Managing Director and CEO Reinhard Zinkann said it aims to target niche markets disregarded by Korean players, such as Samsung and LG Electronics.

In his view, Korean firms have different goals and strategies from Miele and have a long way to go to become top players in the coming years because of a lack of investment in the sector.

``Nothing is impossible. Either Samsung or LG Electronics may become the world’s top appliances maker in 2015. If they want, then they should spend more on appliances. Miele doesn’t worry too much about the Koreans,’’ Zinkann said.

``Both Korean brands Samsung and LG are competing in the appliance industry worldwide and they are attacking fiercely. So we do have to take them seriously. But we are not afraid of them. We are not in fear because we know that we can be the best.’’

Zinkann said Miele has solid brand loyalty from Korean consumers.

``LG and Samsung are rather broad brands, and they are distributed very broadly. Miele is something special. People want to differentiate themselves by owning certain brands.’’

According to Zinkann, Miele doesn’t see products by Samsung and LG as “superior.”

The two Korean firms are increasing their focus on home appliances by launching aggressive promotions and expanding their lineups in Europe and North America to cut their heavy reliance on conventional cash-cows such as TVs and smartphones.

Samsung plans to become the world’s top appliances producer by 2015, while its biggest homeland rival, LG Electronics, also aims to become the global leader.

Speaking of converged distribution strategies being pushed by LG and Samsung Electronics, Zinkann said it’s tough for the Korean companies to focus on specific products.

``Samsung and LG have TVs, smartphones and home appliances. So they have a good understanding of electronics and engineering. That is their advantage. And they have one sales channel, at least in some countries. So they have advantage of size and knowledge, but we’ll see if they will make it to No. 1. I have certain doubts,’’ he said.

Zinkann stressed Miele has been consistent in evolving technologies and products in line with its ``forever better’’ corporate motto.