Chinese electronics no longer hide under Japanese labels

Chinese technology and home appliance corporations are changing their strategies, entering the market with their own original brands, instead of the American and Japanese brands they have acquired.

Haier, launched to sell the same sub-brand Aqua in Vietnam.

In the past decade, Chinese home appliance companies such as Midea, Haier, Hisense have been continuously acquiring long-standing brands from the US, Europe, and Japan. They then use that “cover” to penetrate the appropriate international market. These companies only develop their original brands at home, serving the domestic market.

Since the pandemic, their strategies have gradually changed. Hisense and Haier logos have appeared at global sporting events… Instead of hiding, these companies confidently appear in the international market.

The same strategy is being applied in Vietnam. After many years of “hiding” and doing business under the name of Japanese companies, Chinese companies are now openly appearing in the domestic market for the first time.

Step into the light

Many major brands in the world are now owned by Chinese companies. Haier, Hisense, Midea, TCL… have acquired a large number of long-standing American, European or Japanese electronics brands such as Toshiba, Sanyo, Candy, GE Appliance.

This is a process that has lasted for decades, as a way for businesses of billion-population countries to step out into the world. This method shows a high level of efficiency, making Chinese companies take the lead in many fields. Hisense and TCL are in the top 3 TV brands in the world. Haier is also the electronics company with the largest total revenue, not Samsung, LG or Sony.

Hisense is currently the world's second-largest TV manufacturer in terms of sales, owning Toshiba. Photo: Hisense.

After a period of hiding under the "label" of Japan and Europe, these Chinese companies changed direction, using their original brands to enter markets outside the mainland.

In mid-2024, Hisense chose the Euro to launch in the Vietnamese market. They are a partner of UEFA, sponsoring major European football tournaments. In fact, this company has long sold genuine TVs under the Toshiba brand. The Chinese company acquired the Chinese company's audiovisual equipment division in 2017.

Similarly, Haier recently launched 3 washing machines in Vietnam, the first devices in their massive ecosystem. This company owns the Sanyo brand, then changed its name to Aqua and sells a variety of domestic electrical products including washing machines, air conditioners, refrigerators, etc.

Among the “Big 4” Chinese electronics in Vietnam, Midea has a quieter presence. They still sell mainly through the Toshiba brand and the Comfee sub-brand. They do business mainly in the kitchen appliances, large-sized and industrial air conditioners.

No more discrimination against Chinese goods

Using multiple brands to tap into new markets is a common practice among Chinese companies. However, there are big differences between how mobile and electronics companies operate.

Oppo, vivo or realme all have parent company BBK in China. However, they operate independently, with separate distribution channels and warranties. Similar to Honor, Huawei, the two brands were previously under Huawei but operated independently.

However, when Hisense and Haier entered the Vietnamese electronics market, they used the existing platforms of their subsidiaries. The personnel, business networks, and after-sales services of these enterprises were shared.

Haier is positioned higher than Aqua, selling expensive washing machines like Samsung and LG.

“Acquiring established brands like Aqua and Toshiba helps Chinese companies enter markets more easily and safely at lower costs. They don’t have to invest too much in advertising in the early stages.

Currently, original brands like Hisense or Haier are strong enough globally, no longer having to hide behind Japanese names. They want to build their own brand identity to increase loyalty and long-term value," Mr. Huy Nguyen, representative of the electronics - home appliances system CellphoneS told Tri Thuc - ZNews.

Meanwhile, Mr. Pham Quoc Bao Duy, Director of FPT Shop's electronics industry, said that domestic users are also gradually changing their shopping habits.

“Consumers are gradually losing their prejudice against Chinese brands because their customer base is getting younger. They often choose products that suit their needs. When sub-brands are successful, they take advantage of it to communicate and gain trust,” said Mr. Bao Duy.

However, a company maintaining multiple brands and operating them in parallel can also cause a backlash. Currently, Hisense and Haier are positioned in a higher-end segment than their sub-brands, selling expensive products.

However, as they expand, it is entirely possible that two products from the same company will be at par in price, “stepping on each other's toes”.

Source: https://znews.vn/dien-may-trung-quoc-khong-con-giau-minh-duoi-mac-nhat-ban-post1558973.html