At the APPLiA Italia Assembly, GfK unveiled fresh insights into Italy’s large household appliance market, and the numbers tell an interesting story. In the first quarter, the market saw a 2.4% rise in value and a notable 3.8% surge in volume—a clear sign that average prices are edging downward.
Category Archives: Manufacturing
Vanishing Icons: The Decline of European Home Appliance Brands
Once upon a time, European homes were filled with trusted brands like Indesit washing machines and Hoover vacuum cleaners—hallmarks of engineering excellence. These names still exist, but their origins have shifted dramatically.
Over the past decade, the European consumer electronics landscape has undergone a seismic transformation. Asian conglomerates have systematically acquired household European brands, reshaping the market’s dynamics.
According to data from Euromonitor International and GfK, Chinese brands—both native and those acquired—now hold 42% of the European consumer electronics market, up from **18%** in 2015. A closer look reveals:
– **Pure Chinese brands** (Haier, Midea, Hisense, TCL) – **22% share (€47bn)**
– **Chinese-owned former European brands** (Candy, Gorenje) – **20% share (€43bn)**
Meanwhile, Turkish powerhouse **Arçelik (Beko)** controls **15%** of the market (€32bn), acquiring brands such as Grundig, Indesit, and Whirlpool’s European operations.
Korean giants **Samsung and LG** maintain **28%** combined market share (€60bn), predominantly leading the premium segment.
What remains of truly European brands—**Electrolux, Miele, Liebherr, Bosch-Siemens**—accounts for just **15%** market share (€32bn). However, their survival strategy hinges on a **strategic retreat to the premium market**, where profit margins soar **3-4 times higher** than the mass segment.
The Shift to Premium: A Temporary Haven?
European brands are no longer battling for dominance in lower price tiers. According to McKinsey’s 2024 European Appliance Report, **78%** of European brand revenue now stems from step-up and premium products (€300+ price points), a segment where Chinese competition remains limited.
But the real question remains—can European brands maintain their stronghold in the premium space? Or is this merely delaying the inevitable?
𝗘.𝗚.𝗢. 𝗣𝗼𝗹𝗮𝗻𝗱 𝗰𝗼𝗻𝘀𝘁𝗿𝘂𝗰𝘁𝗶𝗼𝗻 𝘂𝗽𝗱𝗮𝘁𝗲
Just 8 km from the center of Łódź, E.G.O. Polska Sp. z o.o.’s (E.G.O. Poland) new site is taking shape. Construction is in its final stages. The façade and roof are complete, and all windows, doors, and gates have been installed. The technical infrastructure is also in place. Work on the production and administration rooms and sanitary facilities is also well underway. The gradual relocation to the new premises is scheduled to begin in a few weeks. The modern facilities will produce electronic systems for dryers, washing machines, refrigerators, and coffee machines, as well as control panels for dishwashers and induction heating elements. They will also house a new research and development center where innovative user interfaces and connectivity solutions for inductive cooking will be developed
Vestel to Lay Off 2,000 as Zorlu Holding Restructures Amid Debt Woes
Zorlu Holding, a prominent Turkish conglomerate, is undertaking a significant restructuring effort, including the sale of assets and job cuts, as it grapples with a substantial $4.9 billion debt. Bloomberg reports that the İstanbul-based group will eliminate 2,000 positions, roughly 10% of the workforce at its electronics arm, Vestel Elektronik.
The move comes amidst a sharp decline in Vestel’s financial performance. In the first quarter of 2025, Vestel reported a net loss of 5.08 billion Turkish lira ($157 million),
De’ Longhi Group Posts Strong Growth in Q1 2025
The De’ Longhi Group saw a robust 14.6% increase in revenue during the first quarter of 2025, driven by sustained growth in the household sector (+7.2%) and a remarkable 22% expansion in the professional division on a pro-forma basis.
A key contributor to this success was the coffee segment, which accounted for 65% of the Group’s turnover. Market expansion continued across major geographical regions, fueled by the rising global adoption of espresso and a growing consumer preference for high-quality, diverse beverage options. This trend has reinforced the premiumization of the market, further boosting demand.
The combination of increased sales volumes and an enhanced product mix in the household division, alongside the strong performance of the professional sector, led to improved margins compared to Q1 2024. At the same time, these gains enabled the Group to strengthen its investments in media and communication, supporting continued brand growth.
LG Electronics Scales Back Vietnamese Production Amid Tariff Concerns
LG Electronics has halved production at its Haiphong, Vietnam, refrigerator plant, anticipating potential risks as the U.S. government’s 46% tariff on Vietnamese goods nears its 90-day suspension deadline.
The company, which manufactures over 11 million refrigerators annually across Vietnam, Mexico, and India, is shifting output to its Monterrey facility in Mexico to maintain stable U.S. supply while adjusting operations in Vietnam.
Panasonic job cuts
Panasonic Holdings plans to shed about 10,000 jobs, or about 5 percent of its global workforce. The move is part of a drastic overhaul focusing on unprofitable businesses.The firm is considering selling its TV business and breaking up a unit that specializes in home appliances, air conditioners and lighting.
LG new Indian factory
LG Electronics India Ltd. announced the commencement of construction of its new manufacturing facility in Sri City, Andhra Pradesh.The new plant is expected to commence operations by the end of 2026.
The facility will manufacture a diverse range of products, including AC compressors, refrigerators, washing machines and air conditioners.
Beko successfully completes €125 million loan
10-year loan strengthens capital structure and supports strategic development
Agreement with SACE, Italy’s export credit agency and insurance-finance group, fully owned by the Ministry of the Economy and Finance. enhances opportunities for Italian supply chain partnerships and economic cooperation.
Midea Acquires Teka Group
Midea has finalized its acquisition of the Teka Group (excluding Teka Rus LLC), announced in June 2024 after receiving all necessary approvals.
Teka Group operates in over 120 countries with brands like Teka, Küppersbusch, and Intra, holding strong positions in kitchen and bathroom markets across Europe, Asia, and Latin America. It has 10 factories and employs around 3,000 people, recognized for innovation, quality, and design.
This acquisition combines Midea’s technology and manufacturing strengths with Teka Group’s 100-year brand heritage and global presence. The aim is to provide consumers worldwide with more comprehensive home solutions.
Midea’s support will enable Teka Group to strengthen operations, expand product lines, and enter new categories, reinforcing its three main brands.
Jian Fu, President of Midea International Business, expressed delight in welcoming Teka Group, stating the combination will deliver innovative solutions and added value to customers globally
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