“Turn out of the TV and refrigerator” Now in the heyday of’second home appliances’

Park Mo (53, a full-time employee) living in Yangcheon-gu, Seoul, paid 800,000 won at the end of last year to buy a’light wave oven’. The light wave oven is a cooking utensil that adds a microwave and an oven. So far, Mr. Park has considered’home appliances are used until they break down’. The TV and washing machine I use now were also purchased three and ten years ago, respectively.

Mr. Park said, “In the past, I would have been nagging (to my wife) saying,’Why are you trying to buy a lightwave oven when I have a good oven?’ “My wife, who has to take three meals, seemed difficult, so I bought it as a gift.”

Park plans to buy a clothing manager ahead of this Lunar New Year holiday. It is because I want to keep the clothes I wore when I go out. Mr. Park said, “I thought it was an expensive home appliance and a luxury item, but I think it became an essential product like an air purifier, so I plan to purchase it as a bonus for the New Year.

In the aftermath of Corona 19, the so-called “second home appliance market” such as clothing management, dishwasher, and oven has grown significantly. As the number of hours at home increased due to working from home and the spread of non-face-to-face culture, the demand for not only traditional’mainstream home appliances’ such as TVs, refrigerators, and washing machines, but also those who received relatively less attention, increased significantly.

According to the National Statistical Office on the 31st, the amount of consumer electronics transactions through online shopping last year (as of the end of November) was 23,869.4 billion won, an increase of about 30% compared to the same period in 2019. In particular, sales of dishwashers and dryers surged. E-Land sold 150% and 33% more than the previous year, respectively.

According to the home appliance and financial investment industry, the number of clothing management devices sold in Korea this year increased 33% from 450,000 units in 2019 to 600,000 units last year. Dishwashers also sold from 200,000 to 300,000 units by 50%. LG Electronics’ dishwasher sales increased 300% last year compared to 2019. The styler, a clothing manager, also sold more than 20%.

LG Electronics and Samsung Electronics, the two-headed domestic consumer electronics market, are greatly benefiting. Last year, LG Electronics’ household appliance (H&A) division sales recorded the highest ever. The sales were 22,2691 billion won and the operating profit was 2,352.6 billion won. The home appliance division made 73% of the company’s total operating profit. The home appliance division’s operating margin was 10.6%, ahead of Whirlpool, the world’s number one salesman, (8.8% operating margin).

The CE division, which is in charge of Samsung Electronics’ TV and home appliances, also posted sales of 48.17 trillion won and operating profit of 3.5 trillion won last year. Compared to the previous year, it increased by 7.9% (3.41 trillion won) and 36% (9500 billion won) respectively.

In the industry, it is expected that this year, the atmosphere similar to that of last year will continue. This is because the demand for’Zipcock’ is still there as Corona 19 continues. Kim Ji-san, a researcher at Kiwoom Securities, said, “As demand for dishwashers and dryers is increasing not only in Korea but also in emerging countries, the atmosphere is expected to continue this year.”

Yoon Kyung-seok, head of the kitchen appliance business division of LG Electronics’ H&A Business Division (Vice President), said, “We will continue to introduce high-quality products with differentiated convenience so that customers can experience the value of new home appliances.”

Reporter Choi Hyun-joo [email protected]