- Dyson’s success in Korea created demand for Chinese Dyson-like cordless vacuum cleaner products.
- Chyson became a more positive consumer term than traditional Made in China stereotypes.
- Chinese manufacturers faced both opportunity and pressure to improve product quality and brand capabilities.
At the Canton Fair and Hong Kong Exhibition in October 2017 and April 2018, customers from South Korea crowded the vacuum cleaner booth. As long as the factory has handheld cordless vacuum cleaners, it will receive a large number of inquiries from Korean customers. The next step is to discuss the quantity of underwriting for one year.
Business is so good that one wonders whether it is a return to the golden age of foreign trade in the 1990s.
All this is due to Dyson's popularity in the Korean market. With its strong product design and huge advertising investment, Dyson's share of the Korean market continues to rise.
>In the European market, Dyson ranks first in the market share of cordless vacuum cleaners. As the emerging Asia-Pacific market, the growth was the most obvious, with Australia growing by one-third, Japan growing by 30%, South Korea doubling, Indonesia (+266%) and the Philippines (+200%).
The popularity of Dyson has also led to the popularity of a word in South Korea, Chyson. Chyson is a combination of China+Dyson. It means products made in China that are similar to Dyson. Unlike in the past, Made in China products had a bad reputation abroad. At present, the word Chyson has mostly positive connotations, and many Korean consumers have high evaluations of "Chyson" products.
According to data from Gmarket, South Korea's largest shopping website owned by eBay, from May 1 to May 13 this year, sales of Chyson vacuum cleaners increased by 136% compared to April's data, and compared with the same period last year, they increased by 2,792%
The main Chyson products focus on hair dryers and cordless vacuum cleaners:
Representatives of Chyson vacuum cleaners Dibea F6 and EUP’s VH806
The popularity of Chyson vacuum cleaners is largely due to Dyson, which adopts different pricing strategies around the world. The price difference in the Korean market is larger than that in Japan and the United States. Take the Dyson V10 as an example, the price in South Korea is about 837 US dollars, and in Japan it is about 571 US dollars. Later, Dyson also realized the price problem and gave consumers a discount of 200,000 won, such as the V10 in the Dyson store in Seoul. The price of the Absolute vacuum cleaner is 898,000 won, with a discount of 1,090,000 won. The price in the United States is $699, which is about 100,000 won lower than the Korean price. The price in the British market is about $578, 250,000 won lower than the Korean market.
Because of Dyson's high retail price, Chyson products from China took the opportunity to occupy the market. Take Dibea's F6 cordless vacuum cleaner as an example, the retail price is less than $100, which is less than one-tenth of the price of Dyson V10.
At the same time, Korean consumers found that the performance of Chyson vacuum cleaners is not much different from Dyson products. A large number of factories producing cordless vacuum cleaners from Suzhou have made huge profits in this wave. Others, represented by Suzhou Dibea, opened the Korean Gmarket website. Under the vacuum cleaner project, many of Dibea's products were ranked on the first page. It is said that Dibea's shipments of wireless products in the Korean market reached hundreds of thousands in a certain month.
Recently I heard that Puppy Electric is also conquering a lot of territory in South Korea, and it is said that the shipment volume is also quite impressive.
For the vacuum cleaner industry, the development of cordless vacuum cleaners in South Korea is a good observation sample and reference direction. I personally feel that I have the following views on the future development of the wireless market:
- The Korean vacuum cleaner market has all shifted to the wireless market in a very short period of time. For other markets, the transformation may be faster than we think.
- The popularity of the Dibei brand in the Korean market (rather than the previous OEM) shows that in the cordless vacuum cleaner market, no brand except Dyson has an absolute advantage. As long as the product is good enough, even brands from China can have a place in the market.
- The next industry giant may appear in the second wave of market explosion. Who will it be?