Chinese Air Conditioners Target Niche Market in Korea with Compact Models, Challenging Samsung and LG Dominance

Sold on Temu, AliExpress, Coupang, and More... Top Rankings Achieved
TCL and Haier Products Stand Out... High Share of Compact Models
Targeting Single-Person Households and Campers... Affordable Prices
"Re-entering the Market with New Strategies... Future Market Share Worth Watching"

Chinese companies that are expanding their presence in the domestic IT and home appliance market?including segments such as robot vacuum cleaners, TVs, and smartphones?are now expected to set their sights on the air conditioner market as well. With the onset of the summer heatwave approaching in July, the home appliance industry remains on high alert.

According to the home appliance industry on June 24, Chinese home appliance companies are ranking high in air conditioner sales through e-commerce platforms such as Temu, AliExpress, and Coupang. On Coupang, TCL and Haier products currently hold the second and third spots in air conditioner sales, respectively.

When searching for 'air conditioner' on Coupang, the TCL model appears first. Coupang homepage.

It is estimated that more than half of the Chinese air conditioners sold in South Korea are "compact" models. While there are also a significant number of wall-mounted air conditioners produced and sold by companies like TCL and Haier, the number of compact models is much higher. Compact air conditioners are designed for easy portability and installation anywhere, making them especially popular among single-person households and camping enthusiasts in South Korea.

The main reason for the popularity of Chinese air conditioners is their price. Compact models are typically priced in the 100,000 won range, while wall-mounted air conditioners are about 200,000 won cheaper than domestic products. Some air conditioners have improved convenience by being usable even without an outdoor unit. Free after-sales service is also available through e-commerce platforms.

An industry insider stated, "Chinese companies that made a large-scale entry into our air conditioner market in the early 2000s and experienced failure are now using those experiences as a lesson, and are re-entering the market with new strategies," adding, "Although their current market share is very small, it is worth watching to see if it will increase in the future."

Industry estimates suggest that the market share of Chinese air conditioners in South Korea has not yet surpassed 10%. Most analysts believe that it will be difficult for Chinese brands to break the dominance of Samsung and LG, which together control nearly 90% of the market, at least for the time being. However, some point out that as Chinese companies have recently excelled in artificial intelligence (AI), the likelihood of more "AI home appliances" being released by Chinese firms is high, which could pose a significant threat to domestic companies in the future.

Chinese companies are expected to launch an aggressive campaign based on sheer volume going forward. According to data from the National Bureau of Statistics of China, air conditioner production in China reached 265.98 million units last year. Xiaomi announced that it shipped more than 6.8 million air conditioners last year, the highest number since the company was founded.