One of world’s fastest growing home appliance brands ‘Beko’ storms Thailand – promises Thai consumers ‘more, with the best technology’
- Aims for AEC success with unique ‘do more’ proposition that has made Beko the UK’s #1 best-selling home appliance brand, and Europe’s #2 best-selling home appliance brand
- Now studying possibility to make Thailand regional production hub for AEC for refrigerators, washing machines and air-conditioners
- Available in 30 outlets in Thailand in 2014, including Power Buy, Power Mall, Home Pro; targets 100 outlets within 2015
‘Beko’, one of the world’s fastest growing home appliance brands, today announced its launch in Thailand. The brand’s debut in Thailand spearheads its regional ambition to become a favourite brand of consumers in the ASEAN Economic Community (AEC) and a goal to replicate in the AEC its phenomenal success throughout Europe where its innovative washing machines, refrigerators, dishwashers, and cookers have become market leaders.
Mr. Levent Cakiroglu, global CEO of Arcelik A.S., the owner of the Beko brand, said, “Beko is a new generation, global home appliance brand that is sweeping the world with an unrivalled proposition to the consumer: to do more, and to do it better with the best technology.”
“It’s been a winning proposition that has made Beko UK’s best-selling large home appliance brand, as well as made Beko the #2 best-selling brand of home appliances in all of Germany, Italy, France, and other European countries, combined,” he said.
Mr. Cakiroglu said, “To support our appeal to consumers in this region, we are seriously studying the possibility of building in Thailand a manufacturing plant. If we were to do so, such a plant would be a supply hub for the region, producing and exporting refrigerators, washing machines and air-conditioners to the AEC. Thailand would be a base from which we hope to repeat in the AEC our success story in Europe, which is one of the world’s most competitive markets for large home appliances.”
He said, “The Asian consumer is as sophisticated and as demanding as the European consumer. Our cutting-edge technology appliances and responsiveness to consumer needs have enabled Beko to grow rapidly in Europe in a market that is crowded with well-established global brands. We are confident that the demanding Thai consumer will respond positively to Beko’s sensational offer to do more, and to do it better with the best technology.”
He said that there were more than 440 million users of Beko appliances in over 100 countries around the world, and that he expected the Thai and AEC market to add another eight million users of its products and around Bht 16,000 million (US$ 500 million) in sales in the AEC within the next three years, including in the Philippines, Vietnam, Malaysia, Singapore, and Indonesia.
The Beko brand is an unfolding global success story that has been a phenomenon in Europe because of its ability to compete with the biggest global brands. In only five years, it has doubled its market share in Europe and doubled its sales worldwide. In large part, its popularity has come from marrying a reliable and competitively priced product with an understanding of consumer needs, and then quickly being able to integrate into products innovative and useful features. For example, it has a line of washing machines and dishwashers that have slim designs that make them better suited to modern condominium living; a function in its washing machines called ‘Cool Hygiene 20C’ that reduces energy use by 70% in the cleaning of lightly soiled clothes that have been worn only once, and which is very often the case in Thailand; and superfast programmes that ensure superbly washed clothes in just 14 minutes for a 2kg load, to serve the increasingly time-short consumer.
Mr. Cakiroglu said, “Our Research & Development force of more than 1,000 people has been a major competitive advantage and it has also put our company among the world’s top patent holders. Our R&D capabilities have enabled the design of products that are better suited to modern lifestyles and created numerous world-bests and world-firsts in our categories, such as the world’s quietest washing machine and the world’s first refrigerator with an ice-cream maker in it.”
He said that Beko uses its R&D capability to design into its products the particular needs of regions. “We have been studying the individual needs of the AEC countries, including Thailand, for almost three years now and have incorporated innovations and features that will make the products particularly suitable for the special needs of consumers in this region. For example, we have a special technology that ensures that odours do not linger inside the fridge and mix between freezer and fresh food compartments. This is particularly important in Asia where foods can have a stronger smell and our research tells us that this is an important consideration for Asian consumers.
“Next to this, in Asia, we noted a special focus on vegetable freshness. We have a proprietary technology called ‘EverFresh+’ that helps preserve vegetables for up to 30 days and keeps them crisper much longer; and, with a view to the hot climate in this region, Beko refrigerators also have automatic ice-makers that are capable of producing large amounts of ice, quickly,” he said.
He added that Beko’s “R&D muscle has also given Beko some of the best green credentials in the industry, including designing and manufacturing the world’s most energy-efficient washing machine which is rated A+++ (-70%), and which was just launched last month at the world’s biggest home appliance conference in Germany.”
Beko’s combination of innovative features and superb quality with stylish designs, has also won Beko products global accolades, including eleven in the last two years from one of the world’s most prestigious design awards programmes – the Red Dot Awards. In July, a Beko dishwasher was presented with the prestigious ‘Leading Design’ Award by the British Electrical Manufacturing and Retailing Awards in London for its technology, style, and useful features.
Mr. Cakiroglu said that Thailand-based Titanco International Co., Ltd., which has been established for 40 years and with extensive experience in home appliances, has been appointed as the local partner for Beko in Thailand. He said that Titanco International, with over 220 staff, will be responsible for sales as well as after-sales support, which is a key part of the Beko brand’s promise to the consumer.
Mr. Dhevan Liauburindr, President, Titanco International Co., Ltd., said, “Beko products have extra-long warranties and Beko is the only global home appliance brand offering 12-year motor and compressor guarantees across its entire range of refrigerators, dryers, dishwashers, ovens, and most washing machines. In addition, our team of technicians and engineers in the field, as well as our service centres and call centre will ensure superb after-sales care that will be second to none.”
Beko is currently available at more than 30 premium retail outlets, including Power Buy, Power Mall, Home Pro, and other leading home appliance retailers, and will be in 100 outlets within 2015.
The Washing Machine market in Thailand is worth approximately Bht 16,000 million and the Refrigerator market approximately Bht 12,500 million. During 2014, both markets are expected to grow at around 3%, and be worth approximately Bht 29,000 million, combined.
Beko is a part of the Koc Group, one of the world’s largest business enterprises, headquartered in Istanbul, Turkey, employing over 80,000 people, with consolidated sales of around US$34,000 million (approx Bht 1,100,000 million), 12,000 dealers across all its businesses, and17 R&D Centres.
The group’s home appliance business registered sales of approximately US$5,600 million (approx Bht 181,000 million) in 2013, employs around 25,000 people, and operates the world’s largest refrigerator plant under one roof, as well as Europe’s largest washing machine plant under one roof.
Established in 1926, the Koc Group operates in four main sectors where it has leading positions: Consumer Durables, Energy, Automotive, and Financial Services.
