The huge Chinese consumer market has been appealing international firms from a couple of decades already. More and more international brands have tapped into China, looking for opportunities for a lasting growth. However, many of them have been confronted with an underlying problem: how to truly conquer Chinese consumers?

This may be a thorny problem for Electrolux, the well-known international household appliances manufacturer. Although the firm enjoys a 15 percent market share in North America and 20 percent in Europe, its performance in China has not been equally satisfying. The 6th China president for the company has resigned right before the beginning of 2009 (further to disappointing results for the year 2008?) and the Asia Pacific president has taken over to give a new strategic direction to the company.

Following to the latest released, Electrolux intends now to become a mid–high to high end only brand. In fact, the company has signed an cooperation agreement with Suning, the famous Chinese electronic retailer having more than 850 stores domestically, to sell exclusively own brand washing machine products. Over the course of the next 3 months, Electrolux branded products will be withdrawn from other sales channels.  More interestingly, the two brands agreed to conduct a joint research on local consumers’ use habits of washing machines, obviously with the intention to understand how to better reach Chinese household appliance buyers and to develop product features focused on local user specific needs and demands.

So, on the one hand Electrolux will get a huge sales network and a partner who has already a strong experience in understanding the needs of local consumers. On the other hand Suning will get the opportunity to brand itself in the international market.

A match made in heaven? We definitely look forward to see how Electrolux will adapt its offering to the Chinese market – it might really show the way for other international famous home appliance brands that are having a hard time to reach to the Chinese consumer market.