Markus Miele, co-chairman of German home appliance corporations Miele, visited Korea for the first time in seven years to mark the 20th anniversary of the Korean subsidiary's establishment. Founded in 1899, Miele is a corporations that has built its technical prowess in premium appliances over 126 years, including releasing Europe's first electric dishwasher in 1929.
At a press conference held on the 22nd at the Miele Experience Center in Gangnam-gu, Seoul, Miele's chairman said, "Asia is a very important market for Miele's future growth," and "Korean consumers have a keen eye for quality and design, and their feedback is inspiring actual product development." The "Asian basket" for Miele dishwashers is a case developed by headquarters reflecting Korean consumers' opinions that they want to clean concave tableware, such as rice bowls and soup bowls, more thoroughly.
Dishwashers are also the top-selling product in Korea. The company gained popularity by being the first in the industry to introduce an automatic detergent dispensing feature in dishwashers, a function mainly used in washing machines. When Miele's dedicated detergent is mounted on the dishwasher, it automatically dispenses each time a month's worth of detergent is used. In addition, Miele's mainstay products in the Korean market include induction cooktops and vacuum cleaners.
Miele's chairman emphasized "20-year durability" as a brand differentiator. The chair said, "Uniquely in the home appliance industry, we test products to deliver the same performance as when new, based on a maximum service life of 20 years." Behind the confidence in long product lifespans are a German manufacturing principle and a family management philosophy spanning four generations. Miele directly produces more than 60% of all parts locally in Germany and has maintained a fourth-generation family management system that is free from short-term performance pressure. Currently, more than 80 descendants of the founding Miele and Zinkann families jointly own the company as shareholders.
Although the Korean market accounts for less than about 1% (about 55 billion won) of Miele's global sales (about 7.46 trillion won last year), Miele's chairman emphasized the qualitative importance of the Korean market and said the company will increase investment. The chair said, "In the short term, the situation in Korea's home appliance market is not ideal, but over the past 20 years the Korean market has continued to grow," and "Seeing this long-term growth trend, we will continue to invest in Korea in various ways, including personnel and marketing."
To target the Korean market, Miele plans to introduce new products with added functions. The chairman said, "We plan to sequentially launch in the Korean market within two to three years new products such as an intelligent cooking system that prevents overheating or overflow, and a modular 'steam drawer' capable of baking, warming, and steam cooking."
Regarding the intensifying competition in the domestic high-end appliance market, such as LG Electronics rebranding the premium built-in kitchen appliance brand "SKS," the company expressed confidence. Choi Mun-seop, president of Miele Korea, said, "More brands entering is both a threat and an opportunity as it grows the overall market pie," and "Miele's repurchase rate—existing customers buying other Miele products—is far higher than competitors, so our strategy is to steadily increase these loyal customers."
To boost customer loyalty, Miele is moving to strengthen domestic services. Since Aug., it has launched a paid service in which an expert visits to diagnose and manage product condition, and it has introduced a program that allows the basic two-year free warranty period to be extended to up to 10 years upon payment of an expense. Starting in Nov., for washing machines and dryers only, a policy guaranteeing refunds within 30 days of the delivery date will be implemented even for a simple change of mind. Choi said, "In Korea as well, there is a customer who has used a Miele dishwasher for 27 years without a breakdown, showing high product satisfaction," and "We will strengthen professional services in the domestic market provided by skilled technicians with an average tenure of more than 12 years."