Vacuum Cleaners in South Korea

PROSPECTS

Cordless vacuum cleaners becomes the leading format in vacuum cleaners

Cordless vacuum cleaners became the majority category in vacuum cleaners in 2019 with this set to continue over the forecast period while cord vacuum cleaners are on the decline. Cordless vacuum cleaners appeal to consumers as they offer convenience but relatively weak suction power, a shorter battery life, as well as being more expensive than standard variants.

Robotic vacuum cleaners offer consumers time savings

Robot vacuum cleaners is expected to post positive volume sales growth over the forecast period. The growing numbers of dual-income parents mean they have less time to clean their homes every day.

Growth in internet retailing at the expense of many bricks and mortar retailers

Increases in the unit prices of vacuum cleaners are making consumers more sensitive to price encouraging many to look to internet retailing for relatively cheaper prices than bricks and mortar stores. Even though electronics and appliance specialist retailers is a major distribution channel, such retailers are also launching internet retailing channels in addition to their stores offering an omnichannel approach, in order to expand their distribution reach.

COMPETITIVE LANDSCAPE

Domestic players characterise the category though their presence is on the decline

Domestic players remained in the majority in vacuum cleaners in 2019 though their share has gradually declined. LG Electronics sustained strong momentum due to the popularity of its cordless series.

Lower-priced Samsung Electronics cordless variant less successful

Samsung Electronics also introduced its cordless vacuum cleaner at a relatively cheaper price than premium cordless vacuum cleaners although it continued to lose category share in 2019. Nevertheless, the decline in cord vacuum cleaners negatively impacted the volume sales of domestic players which are now preparing to launch cordless vacuum cleaners in response to changing consumer demand.

Players invest in enhanced customer service, though new product development remains the best strategy to boost share

Until 2017, Dyson was distributed by a local distributor while Dyson Korea was set up in 2018. However, Dyson lost share in cordless vacuum cleaners due to a lack of service support, but began to provide its customers with an official service, also offering frequent price discount promotions and increasing media exposure.

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