Chinese Brand Changhong Targets Samsung Sony & LG

Changhong is a relatively unknown name in Australia despite being a TV and appliance powerhouse in China. Now they are getting set to take on Samsung, a Korean brand that 15 years ago faced the same brand recognition problems, that Changhong is currently facing.

The Company that is set to launch a multimillion dollar marketing campaign is currently negotiating with a leading AFL team, with executives from the team recently visiting China.

The deal if finalised could help Changhong, a Sichuan based company with 80,000 employees, get better traction in the Australian market, which has been targeted as a growth market by the Chinese brand who grew unit sales 30% and profits 15% last year in Australia, despite losses from the closure of Clive Peeters, Wow Sight & Sound Stores and the failure of Retravision Southern.

In coming weeks the Company is set to launch new large screen LED and Plasma TVs along with a new range of large fridges that will come with 10 year warranties. 

David Shen, the CEO of Changhong Australia, believes the Company’s unique relationship with Harvey Norman and The Good Guys will lead to growth for the Company who is set to launch several new TVs with 5 year warranty.

Shen believes that he can grow the Changhong brand in Australia, claiming that the products he is delivering are as good as what Korean and Japanese Companies like Samsung, LG, Panasonic and in particular Sony are selling in the Australian market.

“A lot of the products sold by the Korean and Japanese brands are made in China, Sony is a classic example” he said.

“Some of their products are made in Changhong factories” he added.

Chinese exports of TVs and appliances rose 17 per cent in May compared to a year earlier – a trend that has intensified over the past year.

Shen believes that in a few years’ time the Changhong brand will be as well-known as Samsung.

“Now is the perfect time for Chinese brands to make their push in Australia, we have excellent products which when a consumer compares with a Japanese or Korean product they will see it is as good as what they are manufacturing. The big difference is that we will be cheaper and we offer 5 and 10 year warranties because we believe in the quality of our products”.

As TV prices fall in Australia, Shen believes that Changhong can deliver a new generation of Smart TVs that will be as good as what brands like Sharp, Sony, Panasonic and LG are currently delivering. He said that getting the software right so that consumers get a good content and application experience was critical and that Changhong recognised this and will shortly launch several new models.

“Software on a TV has to be as easy to use as a on a mobile phone” he said.

Shen is also set to take on Panasonic in the refrigeration market with new 400 litre fridges that have a 10 year warranty. “We are the #1 refrigeration brand in China and our products are not only high quality, they are innovative, practical and highly functional” said Shen

In China Changhong has created a fridge that becomes transparent when you approach it. The idea has been developed in an effort to cut down power costs as it allows users to see what they want out of the fridge prior to opening the door.

Called the S.Home Refrigerator, it is a full-size fridge that becomes transparent as you approach it, the doors appear opaque from a distance, but up close you can see clearly what is inside the fridge.

“It’s like looking through a glass door, he view allows you to choose your food or make a grocery list without having to keep the door open” said a Changhong executive.

The technology could have a big effect on energy use in Australia as opening a fridge door accounts for 7 percent of household electricity use per year, according to Energy Australia.