Daewoo Electronics, a new subsidiary of South Korean midsize conglomerate Dayou Group, said Monday the company would enter new provinces in the Midwestern part of China with an aim to target the premium market there.
It is the first overseas expansion for Daewoo Electronics since the firm was acquired by Dayou last month, using the group’s existing distribution network in China.
Daewoo will provide its home appliances for large retailers in Sichuan, Hunan and Wuhan province, starting this year.
The company aims to increase sales at shops in China by 20 percent this year, taking advantage of the group’s home appliance provider Dayou Winia’s customer base.
Chinese customers look at Daewoo Electronics' wall-mounted washers at an exhibition in Shanghai on Sunday. (Daewoo Electronics)
The affiliated Daewoo Electronics and Dayou Winia grabbed attention at the Appliance & Electronics World Expo in Shanghai from Thursday through Sunday by showcasing their flagship products, including wall-mounted washing machines, three-door refrigerators and 18-kilogram water bubble washing machines.
Dayou Winia exhibited its signature Dimchae brand lineup including kimchi fridges and rice cookers, and Winia air purifiers and dehumidifiers.
Consumers look at rice cookers by Dayou Winia at an exhibition in Shanghai on Sunday. (Daewoo Electronics)
In addition, Daewoo said it signed a contract to sell 15,000 wall-mounted washers with Sam’s Club, the Chinese version of Costco.
“Daewoo will seek synergy with Dayou Winia in the Chinese premium market by expanding the distribution network,” said an official at Daewoo Electronics.
By Song Su-hyun (song@heraldcorp.com)
