Siemens Home Appliances Lost in China Market

OFweek smart home network news "With the rise of domestic home appliance brands, in the brand recognition, the difference between foreign brands and Chinese local brands is gradually blurred, in the production, manufacturing, research and development, services, channels, terminals and other aspects, foreign brands Without taking up too many advantages, the willingness of consumers to actively choose foreign brands has decreased. Siemens’ home appliances have gradually declined in the Chinese market.”

Into the home appliance stores, in the assortment of home appliances before the brand, you will still stop in front of the Siemens home appliance showcase?

This is a foreign brand that once belonged to the high-end in the hearts of the Chinese people. With the Siemens Group divesting appliance business to the Bo Xi Appliance Company in January 2015, the Siemens appliance brand seems to be lost in its development strategy, showing signs of decline in its brand image.

After the Legal Weekend reporter visited a home appliance store in Chaoyang District, Beijing, he discovered that in the store, domestic brands Haier’s sales were better than “foreign brands” Siemens appliances. "Siemens home appliances are not purely imported. Although they are joint venture brands, using German technology, production and assembly in Nanjing is equivalent to the assembly of household appliances." A staff member of Cui Xing told the Law Weekend reporter.

And "assemble", the result may be caused by quality or defects.

Recently, the Siemens CXW-220-C35S956 range hood produced by Bo Xihua Electric (Jiangsu) Co., Ltd. was detected in the sample quality inspection results of the range hoods sold in circulation in the province in 2016 announced by the Ministry of Commerce and Industry of Qinghai Province. Total pressure efficiency issues, remarks show that production companies have rectified.

According to Hong Shibin, an observer of the home appliance industry, with the rise of domestic home appliance brands, the difference between foreign brands and Chinese local brands is gradually blurred in terms of brand recognition. Foreign investment, production, R&D, services, channels, and terminals are foreign investments. The brand did not occupy too many advantages. The willingness of consumers to actively choose foreign brands was reduced. Siemens home appliances have gradually declined in the Chinese market.

Siemens home appliances have reduced favorability

On July 17th, the Legal Weekend Weekend reporter visited a large appliance store in Chaoyang District, Beijing, and found that Siemens Home Appliances currently sells items in the store mainly including refrigerators, washing machines, and range hoods. The price range of refrigerators ranges from 4,500 yuan to 16,000 yuan, and the range of washing machine categories ranges from 3,000 yuan to 14,000 yuan.

According to the staff of the store, Cui Xing introduced that the price of low-priced Siemens washing machines ranged from 2,000 yuan to 3,000 yuan, but the price has been able to buy relatively high-end domestic washing machine brands.

"It's better to buy domestically-made Haier appliances, which are cost-effective, good service, and after-sale protection." Cui Xing staff told the Law Weekend Weekly reporter that "the Siemens home appliances that they realized are assembled in China, not pure imports. Now buy Siemens. The number of household appliances is far less than that of Haier appliances."

Another staff surnamed Luo told the Legal Weekend Weekend reporter that in the store, previously sold household appliances brands such as Bosch, Siemens, Panasonic and other foreign brands are now domestic brands such as Haier, Midea and Rongsheng. She explained that compared with foreign brands and joint venture brands, domestic local brands are more secure after-sales service.

The Law Weekend Weekend reporter randomly searched for several Siemens refrigerators on the Jingdong Mall App and found that there were some abnormalities such as large fan sounds, large operating sounds, and loud noises when the compressor was working.

There are even consumers who have summed up the sound produced by a certain refrigerator at various stages of operation: "The standby power consumption of the machine is about 6W without noise; the normal operation is not so loud at 40W to 65W, and it is basically inaudible during the day; the machine is fully operational. The noise is particularly loud at around 150W, and it is accompanied by a strange sound of liquid flow."

Repeatedly pass the quality black list

In fact, Siemens refrigerators were not presented by consumers in the past two years. As early as 2011, Luo Yonghao, the founder of Hammer Technology, had annoyed three refrigerators at the Siemens headquarters in Beijing because the refrigerator door was not easy to close.

In addition, the rule-of-law weekend reporter combed and found that not only the refrigerator in the Siemens home appliance category was questioned.

In June 2017, the Jiangsu Provincial Administration for Industry and Commerce notified the unqualified list of quality inspections of lamps and lanterns in the second half of 2016. The lamps and lanterns sold by Ouborui Lighting Operation Department of Siemens, Haimen City, were marked with “Insulation, Creepage Distance and Clearance of Category II Lamps. "Electric shock protection, electrical strength test, power terminal disturbance voltage" and many other quality inspections failed.

In May 2017, the Ministry of Commerce and Industry of Qinghai Province notified the unqualified list of quality inspections of range hoods in 2016. Siemens CXW-220-C35S956 range hoods have problems with total pressure efficiency.

In May 2017, Siemens embedded cookers were not able to match the number of stoves and pans, and the company responded that it would upgrade the products according to the users' complaints.

Industry observer Liang Zhenpeng said in an interview with the media that many multinational corporations have far-reaching quality standards in the Chinese market and the quality standards implemented in the European and American markets. The quality of their products produced and sold in the Chinese market is better than that of the European, American and Japanese markets. Low, but through the inspection of China's quality supervision industry and commerce departments can be completely understood.

"Siemens has a low price in the Chinese market. This low-cost promotion strategy will inevitably damage the quality of its products," said Liang Zhenpeng.

Regarding the quality and after-sales issues posed by consumers, and the reasons why Siemens Home Appliances frequently made it onto the quality list, the Rule of Law Weekend reporter contacted Siemens (China) Co., Ltd. for an interview. The other party replied: “Siemens branded home appliances are manufactured, manufactured and sold by Bosch Home Appliances. Siemens has sold the shares of Bo Xi Home Appliances to Bosch. At present, Boxi Home Appliances is 100% owned by Bosch. , Independent daily operations, sales and after-sales services. Siemens does not participate in its daily management."

On July 18th, Bo Xi’s PR company in China responded to the Rule of Law Weekend reporter: “The Chinese market is one of the important markets for Siemens’ home appliances in the world. Siemens’ home appliance products strictly comply with the relevant laws and regulations of Chinese product quality in terms of services. Siemens Home Appliances has product warranty policies, feedback systems and follow-up visits to ensure the quality of customer service."

Domestically attacked by domestic brands

According to public information, the Siemens home appliance brand entered China in 1994 and is an important brand of the company. Boxi Household Appliances Group was established in 1967 and was jointly established by Siemens AG and Robert Bosch GmbH. Siemens and Bosch Group each hold 50% of the shares. Siemens Home Appliances products are manufactured and sold independently by Bosch Home Appliances and provide after-sales services. Siemens, as an investor, does not participate in operations.

In January 2015, the Bosch Group acquired a 50% stake in the Siemens Group. Bosch Electric Appliances became a wholly-owned subsidiary of the Bosch Group. However, Bosch Electric Appliances still retains the brands, channels and markets of Siemens Home Appliances. The BSH Group is still a Siemens trademark. Licensee.

As for the reason why Bosch Appliances wanted to retain the Siemens home appliance brand, the aforementioned CUI staff told the Law Weekend Weekend reporter: “Since the core technology is still Siemens, Siemens refrigerator zero-temperature preservation technology is Siemens exclusive technology, Bosch does not. Siemens does not give technology , so Bo Xi home appliances have to use the Siemens brand."

The Rule of Law Weekend reporter noticed that a home appliance circle watcher whose name was Yu Kong had questioned that Bo Xi’s home appliance company had to sacrifice Siemens’ brand image to maximize its market share, share with the low-end market, and grab the cake. Bo Xi's home appliances have different merchants, channels, and e-commerce vendors in different regional markets. This has caused prices of Siemens home appliances to be a bit chaotic.

After the acquisition of Siemens Home Appliances Business by Bosch, why is the development strategy questioned? What is the orientation of the home appliance business of Bossin’s home appliance business?

"Either pre-acquisition or post-acquisition, Siemens Home Appliances has been a long-term owner and operator of Bosch Appliances as a home appliance brand. The team and strategy of all Bosch Appliances services for Siemens have not changed." The company's public relations company in China Reply said.

According to Liu Buchen, an industry observer, Siemens’ home appliances in the Chinese market have been tepid over the past few years. No major growth has occurred and no major declines have occurred.

"Siemens's unsatisfactory performance in the Chinese market is not unexpected. This is the inevitable result of the continued rise of local home appliance companies in China," said Liu Buchen, a reporter for the Rule of Law Weekend.

According to his analysis, first of all, due to the environmental impact of the European and American household appliances falling in the Chinese market, the global household appliance industry has experienced three major shifts over the years. The early European and American household appliances dominated the world and dominated the world. From the 1980s to the beginning of this century, Japan Appliances lead the world. Since then, China and South Korea have seen the rise of home appliances, Europe and the United States, and Japan’s home appliances have declined; secondly, the home appliance industry is not considered a highly sophisticated industry, and its profit is relatively low, which makes it less attractive to the developed countries with higher labor costs. Developed countries have withdrawn; Once again, as the world’s largest household appliance consumer market, foreign brands have only ten years of glory in China, and then their market position has been declining. Bosch and Siemens are also hard to make a converse.

“Foreign brands have two major problems in the Chinese market: First, they face the competition of local home appliance brands. Foreign brands no longer have the advantages of high quality and low price, and consumers have a high degree of acceptance. Second, foreign brand products are not available in manufacturing R&D. Leading domestic brands, and in terms of services, channels, terminals, etc., are not better than local brands, then foreign brands in the mind of consumers no longer have high value.” Hong Shibin added.

"Siemens home appliances in China, there is not much opportunity for development, and may retain very little market share, and finally slowly withdraw from the home appliances sector." Hong Shibin predicted.

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