Korean products gain more popularity in fridge market<\/p>\n
Rudijanto
\nContributor
\nJakarta<\/p>\n
With an annual growth rate of 10 percent to 15 percent per
\nannum, the Indonesian refrigerator market is certainly promising
\nand manufacturers are quickly developing new technology and
\ndesigns to win the hearts of consumers.<\/p>\n
This year's market size for refrigerators is expected to reach
\n1.7 million units, distributed among various manufacturers,
\nincluding Sharp, Toshiba, Sanyo, Samsung and LG.<\/p>\n
The competition is indeed tough. Major Japanese brands, such
\nas Sharp and Toshiba, enjoy the upper hand, as the local
\nperception is that Japanese technology is superior.<\/p>\n
But Korean brands are also popular among Indonesian consumers.
\nLG and Samsung have, for example, received positive market
\nresponses as technologically these producers have reached the
\nsame level as their Japanese counterparts.<\/p>\n
"Japanese and Korean brands sell equally well here. There is
\nno difference because their respective quality and prices are
\nalmost at the same level," said a salesgirl at Electronic City,
\nKelapa Gading, East Jakarta.<\/p>\n
Manufacturers admit that there is no significant leap in
\nrefrigerator technology, although some have installed new
\nfeatures to attract technologically aware consumers.<\/p>\n
For instance, Toshiba is highlighting its plasma cluster
\ntechnology which can generate ozone and deplete ion. This
\nprevents the growth of bacteria in the fridge.<\/p>\n
However, only Toshiba's higher-end products are equipped with
\nthis technology. For lower-end products, especially single-door
\nfridges, Toshiba has invented a flat design evaporator that cools
\nthe freezer quickly and efficiently.<\/p>\n
"Freezers of other brands usually have protruding lines on the
\nsurface which are needed to channel the Freon, but the surface of
\nour single-door freezer is flat. This flat surface provides a
\nmaximum cooling system," Hery Sugiarto, product manager of
\nTopjaya Sarana Utama (TSU), Toshiba's marketing arm, said in
\nJakarta early last week.<\/p>\n
Not to be left behind by this Japanese brand, Korea-based LG
\nhas also introduced its latest innovation, by integrating the
\nrefrigerator and the Internet. This enables the fridge to be
\nlinked (online) with the rest of the house, its owner and the
\nworld beyond.<\/p>\n
With a 15.1 inch digital LCD screen, the LG Internet Digital
\nRefrigerator (GR - D267DTU) boasts a video camera, speakers, LAN,
\nand modem. While in the kitchen, the Internet can be accessed for
\nvarious purposes, including online shopping, listening to music
\nand online cooking instructions.<\/p>\n
Another technological improvement in this refrigerator, known
\nas "Ice Beam Door Cooling", speeds up the cooling process by
\nthree times. In most fridges cool air comes from the back of the
\nfreezer; in the LG, the cool air also comes from the door and the
\nside walls of the freezer.<\/p>\n
Another Korea-based manufacturer Samsung is promoting its bio-
\ntechnology, that is said to be able to reduce the spread of
\nbacteria. This bio-technology is also expected to prevent the
\nloss of Vitamin C from produce stored in the vegetable bin.<\/p>\n
Samsung is also highlighting its Bio deodorizer, that it
\nclaims can preserve the aroma of each food stored in the
\nrefrigerator.<\/p>\n
In terms of cooling, the manufacturer offers a three-source
\ncooling system, in which cool air comes from the back, left and
\nright sides of the freezer.<\/p>\n
While most of these sophisticated models are available on the
\nmarket, Indonesians generally prefer to purchase simpler models,
\nparticularly single door ones.<\/p>\n
"Single-door refrigerators make up 70 percent of total sales,
\ntwo-door refrigerators, 20 percent, and more luxurious models,
\nthe remainder," said James Haley of LG Electronics Indonesia
\n(LGEI) Product Marketing.<\/p>\n
Hery shares James' observation that the biggest market is for
\nsingle-door fridges. For Toshiba, the sales of single-door
\nrefrigerators can reach over 85% of total sales.<\/p>\n
"Consumers buy fridges that fit their needs and because most
\nbuyers are newlyweds, they think a single-door refrigerator is
\nample," Hery added.<\/p>\n
The refrigerator market here is expected to swell to 1.9
\nmillion units next year. With this estimated growth,
\nmanufacturers will try harder to grab a larger portion of the
\nmarket.<\/p>\n
The market size of technologically-sophisticated products may
\nbe small, but manufacturers are more than happy to launch such
\nproducts here, as promotional activities boost their appeal to
\nlocal customers.<\/p>\n
Most high-class fridges are imported in CBU (Completely Built-
\nUp) form. For lower and middle-end products, manufacturers such
\nas Toshiba and LG have production plants in Indonesia.<\/p>\n
"We have invested cumulatively US$9 million in our
\nrefrigerator plant in Indonesia, which is the basis of production
\nfor the Southeast Asian region," said LGEI's national sales and
\nmarketing manager Sung Khiun.<\/p>\n
If LG opened its plant as far back as 1992, Toshiba has been
\ninvesting in Indonesia for 15 years.<\/p>\n
Certainly, local production has certain advantages, including
\na lower-paid labor force.<\/p>\n
However, according to Hery's market research, most customers
\nbase their decision to buy a fridge on its design.<\/p>\n
"Refrigerator design is important because the decision maker
\nis usually a woman. Females tend to prioritize the appearance of
\nproducts. Usually, after being attracted by a certain model,
\nwomen will consult their husbands over the quality of the model.
\nThus, brand becomes the second factor after design," Hery said.<\/p>\n
While this may be true, men can be more picky than women when
\nit comes to esthetics. Manufacturers have put more and more
\nemphasis on design as it seems both sexes are no longer happy
\nwith dowdy looking whitegoods.
\n Indeed, many fridges are not white at all. Color has been
\nintroduced along with modern kitchen design, and interiors are
\nmore luxurious.<\/p>\n
Manufactures may boast of their technological superiority, but
\nin today's society looking good is what really counts. The days
\nhave truly passed when the fridge was an eyesore; disguised under
\na handful of magnets and the grocery list.<\/p>",
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