Electrolux update

After 2 very favorable years for its business, as for all home furnishings, Electrolux has been in difficulty since the end of the health crisis. The Swedish group had launched a cost reduction plan in September 2022, which mainly concerned Europe and North America, with the aim of improving the profit of 2023, recalls Reuters . The Swedish manufacturer would have separated from 4,000 employees in October (8% of its workforce) to “reduce costs, cushion the fall to come and leave serenely” , and specify LSA. Electrolux even closed 2 factories in Hungary (refrigerators) and in Memphis in the USA (ovens). The group recorded some €12 billion in sales in 2022, but a net loss of €116 million. Its turnover was up by 9% in the 1st quarter of 2023, but with a further loss of €52 million.

According to the Bloomberg agency , the Chinese household appliance giant Midea (€45.4 billion in sales in 2022, +0.8% vs 2021) would be interested in acquiring Electrolux. Following this announcement on May 2, Electrolux shares gained around 4% on the Stockholm Stock Exchange, and were at the top of the Stoxx 600. Note that Midea had helped the manufacturer to introduce the AEG brand on the Chinese market . in 2016. According to Reuters and Bloomberg , analysts at JPMorgan questioned whether such a takeover would gain regulatory approval after geopolitical concerns escalated over the Ukraine crisis, given that the United States is the largest market from Electrolux.

According to Bloomberg , Samsung is another potential buyer of Electrolux. “Here we see a bit lower regulatory risk, but Samsung has already built its ecosystem in the West and we believe Electrolux would add little value to that,” JPMorgan said through Reuters , picked up by Boursier.com . Paul Palmstedt, spokesman for Electrolux, has not commented on these elements since May 2. No comment either from Midea, to date…

According to the Bloomberg agency , the Chinese household appliance giant Midea (€45.4 billion in sales in 2022, +0.8% vs 2021) would be interested in acquiring Electrolux. Following this announcement on May 2, Electrolux shares gained around 4% on the Stockholm Stock Exchange, and were at the top of the Stoxx 600. Note that Midea had helped the manufacturer to introduce the AEG brand on the Chinese market . in 2016. According to Reuters and Bloomberg , analysts at JPMorgan questioned whether such a takeover would gain regulatory approval after geopolitical concerns escalated over the Ukraine crisis, given that the United States is the largest market from Electrolux.

According to Bloomberg , Samsung is another potential buyer of Electrolux. “Here we see a bit lower regulatory risk, but Samsung has already built its ecosystem in the West and we believe Electrolux would add little value to that,” JPMorgan said through Reuters , picked up by Boursier.com . Paul Palmstedt, spokesman for Electrolux, has not commented on these elements since May 2. No comment either from Midea, to date…

Samsung loss

Samsung Electronics Co. is likely to post an operating loss in the second quarter on a chip downturn and decline in mobile demand, in what will be the first quarterly loss for the world’s largest memory chip maker in nearly 15 years, according to analysts Sunday.

Samsung Electronics could suffer an operating loss of as much as 1.28 trillion won (US$961 million), according to an estimate by Hi Investment & Securities Co.

LG Electronics estimates to log second-highest Q1 profit of W1.5tr

LG Electronics said Friday it predicted its first-quarter operating earnings at 1.5 trillion won ($1.14 billion), which will likely be the company’s second-highest profit for the January-March period, outpacing Samsung Electronics’ financial result for the first time in more than a decade.Details on each business sector’s estimated figures were not available in Friday’s earnings guidance, but market watchers expect that LG’s key business divisions for home appliances, TVs and vehicle components put up solid results in the January-March period.

Samsung seeks to overcome downturn with energy-efficient home appliances

Samsung Electronics on Tuesday unveiled the lineup of its new range of energy efficient Bespoke home appliances, in a move to attract Korean consumers and satisfy strict environmental regulations in Europe and elsewhere.

The tech giant said it will improve its profitability this year with upgraded products equipped with artificial intelligence (AI) technology.

“What consumers are most interested in recently are energy-related functions. So we will overcome the difficulties this year, through our eco-friendly products,” Samsung Electronics Vice Chairman Han Jong-hee said at a press conference.

Samsung Electronics Executive Vice President Choi Ick-soo also said that the company’s energy-efficient products have helped generate growth in sales, especially in the European market.

In the aftermath of the global economic recession, Samsung Electronics suffered a 60 billion won ($46 million) operating loss in its home appliance business during the fourth quarter of last year. This was the first time in seven years that the company suffered a quarterly operating loss in its home appliance business.

Although the vice chairman did not specify the timing of the turnaround, he said that the company expects better earnings during the second half of this year.

According to the company, the new Bespoke appliances use 30 percent less energy than first-class energy-efficiency products. In addition, consumers can further reduce the use of energy, thanks to AI technology, which can analyze how consumers use the products.

“Our washing machines can reduce microbeads from clothes by 60 percent,” Han said. “We will reduce the amount more significantly by launching a microbeads filter this year.”

Samsung Electronics emphasized the fact that it made some parts of its refrigerators and other home appliances with reusable plastic. It also noted that the new Bespoke products are equipped with Samsung’s SmartThings function to enhance connectivity between them.

During the press conference, Samsung Electronics reiterated that it will focus on nurturing the robotics business as one of its new growth engines.

“Engineers at Samsung Research plan to develop a Samsung robot platform,” Han said. “We are preparing to launch the EX1 robot this year, and there is the possibility of further development in our robot vacuums.”

His remarks came as Samsung Electronics’ recent acquisition of shares in Rainbow Robotics sparked expectation that the conglomerate may resume large-scale M&As this year. The vice chairman, however, remained cautious about the speculation.

Instead, he confirmed that Samsung Electronics will be more aggressive in using ChatGPT for its home appliance business.

“As more companies are using ChatGPT, I don’t deny the fact that it has become part of the mainstream,” Han said.

Renting large home appliances becomes popular among young Koreans

South Korea’s home appliance rental market is expanding as younger generations, who prioritize experience over ownership, prefer to rent instead of buying.

Renting large appliances such as refrigerators, air conditioner and washing machines, which cost a lot to purchase, has become an affordable alternative for people who move frequently or cannot afford the upfront costs.

According to data from the country’s top three electronics rental businesses ? Coway Co., LG Electronics Inc. and SK Magic Co. – their cumulative number of rental accounts is estimated at around 11.81 million at the end of last year. The local rental market has been steadily growing each year, with 11.04 million accounts in 2020 and 11.46 million in 2021.

As the market grows, the range of appliances available for rent is also diversifying. Large home appliances, also known as white goods, are becoming more popular, with LG Electronics starting to offer rental services for air conditioners and washing machines last year in addition to refrigerators in 2020.

LG Electronics reported that its rental business revenue in the third quarter of last year reached 551.9 billion won, a 20 percent increase from 459.7 billion won during the same period in the previous year. Samsung Electronics Co. is also offering rental services for its washing machines, dryers, air conditioners, refrigerators and vacuum cleaners in collaboration with SK Magic. The total number of products rented by these companies reached 23,000 units last year.

The main driving force behind the expansion of the home appliance rental market is millennials and young working professionals who are familiar with the sharing culture. Among the new LG Electronics rental subscribers last year, the proportion of those in their 20s and 30s was as high as 30 percent. Including those in their 40s, customers aged 20 to 40 account for 65 percent of the total.

Samsung new washing machine and tumble dryer

Samsung Launches Most Energy Efficient 11KG AI Bespoke Washing Machine and 9KG Tumble Dryer in the UK

The UK’s most energy-efficient 11KG washing machine and 9KG tumble dryer by Samsung

London, UK – 7th February 2023 – Today, Samsung Electronics UK Ltd. is proud to launch the most energy efficient 11kg AI Washing Machine and Premium 9kg Tumble Dryeravailable in the UK. When combined and used together, you can save over £1,500 on your energy bills across five years

The new Bespoke AI Washing Machine comes with an A rated energy efficiency rating – and is the most energy efficient 11KG washing machine on the market. Featuring SpaceMax™ Technology, the new Bespoke AI Washing Machine can fit a bigger sized drum into a standard 600mm depth cabinet, allowing for greater wash loads of up to 11KG – ideal for busy households. Whilst the new Bespoke AI 9kg Premium Tumble Dryer comes with an A+++ energy efficiency rating for tumble dryers – and is the most energy efficient Tumble dryer on the market

What’s more, when you combine and use the A rated Samsung Washing Machine and A+++ Tumble Dryer, you can save over £1,500 on your energy bills over five years Both also feature AI Energy Mode with SmartThings, a power-saving feature that helps to cut costs and make life smoother at every turn. It includes diverse features, such as AI ecobubble, which detects the type of fabric and optimises the volume of bubbles, washing time, temperature, and spin speed.

The Bespoke AI Washing Machine and Premium Tumble Dryer come with a five-year warranty on parts and labour when purchased from selected retailers. They also come with a 20-year warranty on the digital inverter motor, Samsung’s most comprehensive warranty to date, as part of the company’s commitment to reducing waste and promoting energy efficiency

Samsung Launches Most Energy Efficient 11KG AI Bespoke Washing Machine and 9KG Tumble Dryer in the UK

These new products can fit into a standard 600mm depth cabinet, ideal for Laundry rooms, side by side or vertical with a Samsung stacking kit.

Net Dimension (WxHxD)
600 x 850 x 600 mm

Samsung Launches New Series 7 Bespoke AI™ Oven

Samsung Launches New Series 7 Bespoke AI™ Oven
February 3, 2023Share open/close
Featuring AI Pro Cooking technology to make healthy meal prepping simple for the smartest, most versatile, and interactive kitchen space ever

London, UK – 3rd February 2023 – Samsung Electronics UK Ltd. has today announced the launch of the latest addition to its Bespoke home appliance range with the Series 7 Bespoke AI™ Oven, designed to make your kitchen smarter, more versatile and more interactive than ever.

The Series 7 Bespoke AI™ Oven is set to revolutionise the healthy meal prepping experience, through its powerful and intelligent AI Pro Cooking[1]technology, to produce delicious meals that cater to users’ dietary requirements.

AI Pro Cooking optimises cooking settings while monitoring food. If the oven is set to cook a recognised dish, it will recommend the cooking mode, temperature, and cooking time. Individuals can also see how their meal is coming along in real-time, by pairing the oven with the SmartThings App[2] and tapping View Inside. In addition to this, Samsung’s Dual Cook Steam™ gives users the ability to prepare healthy steamed dishes while cooking separate dishes at different temperatures, at the same time.

With the oven’s internal camera and powerful AI and with the Sense Inside feature[3]– the first food recognition and burn detection[4]– the oven can suggest cooking settings by recognising 80 different dishes and ingredients[5]. With the integration of SmartThings Cooking and Samsung Health, the Bespoke AI™ Oven can look at a user’s workout stats and diet goals to recommend meal options based on the ingredients they have at home.

The Bespoke AI™ Oven has a simple, sleek design, as well as a convenient auto open door for a more streamlined aesthetic. The smart oven is designed with a handleless, flat door design that syncs perfectly with any modern kitchen. With just a touch of your control panel, you can effortlessly open the smart oven’s door.

Available in Black Glass and Satin Beige. Samsung also offers matching compact ovens and warming draws

Miele presents Pioneering GmbH

Miele has founded its own incubator in order to further promote the development of innovative solutions from within the ranks of the workforce and implement them faster. With Pioneering GmbH, Miele is ensuring a creative environment in which internal start-ups can bring their ideas to fruition faster, well away from established structures. Management of Pioneering GmbH is to be shared by Ina Nordsiek, Director Intrapreneurship within the business unit, and Hendrik Stegelmann, Director Digital Innovation and Products with Smart Home. Both will assume their new responsibilities alongside their existing tasks.

Particular attention will be paid to promoting business ideas which represent a strategic fit but are outside Miele’s previous core business field. «With Pioneering GmbH – Nordsiek explains – we are offering administrative freedom and elbow room and a professional and inspiring environment in which we bring together the best of the start-up and the Miele world». As Stegelmann added, «on the one hand, teams have the liberties and autonomy of a start-up whilst on the other being able to fall back on the support of a globally active family company».

In more concrete terms, ideas for innovative business models, product or process solutions from the New Growth Factory or Smart Home are transferred to the new company which, after careful evaluation by Miele, are considered promising. Once there, development of the so-called Minimum Viable Product continues through to market maturity, initial discussions with potential customers and market trials under real-life conditions. If the business case overcomes this hurdle, it is either integrated at Miele or pursued further as a separate start-up founded at that point

Samsung Electronics and LG Electronics suffered a steep drop in sales of home appliances

Samsung Electronics and LG Electronics are working on special measures to cope with the steep drop in sales of home appliances.

Samsung Electronics has recently divided the Kitchen and Living Development Groups under the Development Team of the Home Electronics Division into five development groups — the Refrigerator, Cooking Equipment, Dishwasher, Clothing Care, and Vacuum Cleaner. The Software Development Group under the Development Team was also subdivided into five groups by product group.

In early 2022, Samsung Electronics sent six executives from the Video Display (VD) and Mobile Experience (MX) Division to the development team of the Home Appliances Division. It also established a next-generation home appliance research team at Samsung Research, a leading research and development organization.

Samsung Electronics has completely overhauled the Home Appliance Division because it recorded a loss of 318 billion won in the fourth quarter of 2022, analysts say.

LG Electronics, the No. 1 global consumer electronics company, is placing a big bet on the electric vehicle business. The company is expected to try to offset the sluggishness in the home appliance sector with sales growth in the electric vehicle business.

IBK Investment & Securities estimated that LG Electronics’ H&A Division’s operating profit plunged from 445.5 billion won in the first quarter of last year to 19.2 billion won in the fourth quarter of the same year. Stock market analysts forecast that Samsung Electronics and LG Electronics will enter a deficit tunnel in both TV and home appliance businesses in the first half of this year.

Unlike the Home Appliance Division, LG Electronics’ VS Division is estimated to have recorded operating profits from the second to fourth quarters of 2022 in a row, recording its first surplus on an annual basis. Its sales also reached 8 trillion won to 10 trillion won in 2022, which is estimated at 10 percent of LG Electronics’ total sales. Since the launch of the VS Business Division in 2013, the proportion of its sales in the automotive electronics domain has never exceeded 10 percent of its total sales. Industry insiders expect LG Electronics’ backlog of orders for electric vehicle business to reach more than 80 trillion won as of the end of 2022.