Siemens Home Appliances Lost in China Market

"Domestic home appliance brands are gaining momentum, leading to a noticeable shift in consumer perceptions. Once regarded as symbols of luxury, foreign brands like Siemens are finding it increasingly difficult to distinguish themselves from their Chinese counterparts in areas such as brand recognition, production, R&D, services, distribution, and customer support. As a result, the allure of choosing foreign brands has diminished, and Siemens' presence in the Chinese market is waning. Walking into any appliance store, you might find yourself pausing in front of the Siemens display, but the appeal is fading. This brand, once synonymous with premium quality, has struggled since Siemens AG sold its home appliance division to Bosch in January 2015. Since then, the brand's identity seems to have lost focus, with its image slipping among consumers. During a visit to a Beijing appliance store in Chaoyang District, the Legal Weekend reporter noted that domestic brands like Haier outsell "foreign" brands such as Siemens. A staff member at the store mentioned, "Siemens appliances are not fully imported; they are joint ventures assembled in Nanjing. While they use German technology, the assembly process means they're essentially locally produced." This localization raises concerns about quality. Recent quality inspections by the Qinghai Provincial Bureau of Commerce revealed issues with a Siemens CXW-220-C35S956 range hood, specifically regarding total pressure efficiency. The company has since addressed these issues. Industry observer Hong Shibin notes that with the rise of domestic brands, the distinction between foreign and local brands is blurring. Foreign brands no longer enjoy significant advantages in production, R&D, or service delivery. Consumer preference for foreign brands has diminished, contributing to Siemens' decline in China. A visit to an appliance store in Beijing revealed that Siemens' offerings include refrigerators, washing machines, and range hoods. Prices range from $650 to $2,300 for refrigerators and $430 to $2,000 for washing machines. Staff members reported that low-priced Siemens washing machines start at around $280, but similar quality domestic brands offer better value for money. One staff member, Cui Xing, commented, "It’s better to go with domestic brands like Haier—better service, cheaper prices, and stronger after-sales support." Another staff member, surnamed Luo, added that domestic brands like Haier, Midea, and Rongsheng now dominate the store's sales, citing better after-sales security as a key factor. Online, consumers have noted issues with Siemens refrigerators, such as excessive noise from compressors and fans. Some users even described the varying levels of noise during different operational stages. Siemens appliances have faced repeated quality issues. In 2011, founder of Smartisan Tech, Luo Yonghao, expressed frustration with Siemens refrigerators due to faulty door closures. More recently, in June 2017, the Jiangsu Provincial Administration for Industry and Commerce flagged Siemens lighting products for failing insulation tests. Range hoods and built-in cooktops have also appeared on quality blacklists. Liang Zhenpeng, another industry observer, highlighted that multinational corporations often lower quality standards in China to cater to lower price points, affecting overall product quality. When asked about these recurring quality issues, Siemens (China) Ltd. stated that Bosch Home Appliances handles manufacturing, sales, and after-sales services independently. Siemens sold its stake in Bosch Home Appliances in 2015, leaving it entirely under Bosch's ownership. Regarding the retention of the Siemens brand by Bosch, a store employee suggested that Siemens' core technologies remain integral to the brand. For example, Siemens' zero-degree preservation technology is exclusive, preventing Bosch from adopting it. The legal weekend reporter also noted that inconsistencies in pricing across different regions and channels have further diluted the Siemens brand's image. Despite this, a spokesperson for Bosch China stated that the Chinese market remains crucial for Siemens home appliances, emphasizing adherence to local quality regulations and robust after-sales support. Domestically, domestic brands like Haier, Midea, and others continue to outpace foreign competitors. With rising local competition, Siemens' future in China appears uncertain. Industry observers predict that the brand may retain a minimal market share before gradually exiting the market altogether. As Liu Buchen, an industry analyst, explained, the struggles of foreign brands in China are part of a broader trend. Local brands are rapidly advancing, forcing foreign brands to adapt. Quality, service, and pricing remain critical factors influencing consumer choices. Siemens' challenges reflect a broader challenge faced by many foreign brands in China—adapting to a rapidly evolving market dominated by local players."

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