Mon, May 01, 2006 - Page 12 News List

Home appliance makers make foray into 3C market

OWN-BRAND PRODUCTS Kolin and Tatung, which are better known for home appliances, are now marketing electronics goods such as MP3 players and cellphones

By Jason Tan  /  STAFF REPORTER

Last year, combined revenues for brandname 3C products and flat-screen televisions accounted for around 8 percent of Tatung's overall sales, and their contribution will double to 15 percent this year, he added.

However, analysts expressed skepticism regarding the ability of home appliance makers to cause a stir in the 3C industry.

"People will always go for the famous Tatung rice cookers, but will they buy handsets bearing the Tatung logo?" asked Ann Liang (梁嘉鈴), principal analyst of mobile devices and consumer services at Gartner Inc's Taiwan branch.

Marketing and promotion of 3C products are a completely different ball game compared with home electronics, she said.

Instead of using the same brand names -- which seem "old-fashioned" to local consumers -- on their 3C offerings, these firms might want to create a young, dynamic sub-brand, Liang said.

This would differentiate the product lines from home electronics, she added.

In the handset market, where giants such as Samsung Electronics Co and Nokia Oyj dominate, bundling mobile phones with major telecommunication operators' services is a fast way to increase product visibility, Liang said.

However, regardless of the promotions used, the basic requirement that the 3C products offer compelling designs and distinguishing features still stands, she said.

"Without this solid foundation, these products wouldn't stand out," she said. "Local home appliance makers ought to think harder about how to differentiate their products."

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