Haier, Hisense and Meiling from China will compete for Gorenje, the largest white-electricity company in Slovenia in Europe. Prior to this, European professional media speculated that the acquirer was Chinese-American. The rumors did not break.
The rumor was falsified. It was not the United States but Meiling.
Haier, Hisense and Meiling from China will compete for Gorenje, the largest white-electricity company in Slovenia in Europe. Prior to this, European professional media speculated that the acquirer was Chinese-American. The rumors did not break.
This accurate news came from Gorenje. On May 8th, Gorenje published a news that the company has received three offers, namely Haier, Hefei Meiling and Hisense, three Chinese companies.
The pace at which Meiling took the European mergers and acquisitions was somewhat unexpected. Starting in December of last year, BlueTech got European media news that the Midea Group from China is acquiring the largest white goods maker in Slovenia, Gorenje. There is also another Chinese company, Haier.
Later, when verifying this information with people familiar with Gorenje, the other party did not make an accurate response. It only stated that there were 2-3 willing companies, including the participation of Chinese companies, but did not disclose the company's name and other specific information.
Informed sources close to Gorenje revealed to Blue Technology that around the Spring Festival in 2018, the three Chinese companies led their respective business negotiating groups to have close contact with Gorenje. In the preliminary preparations, Gorenje conducted a due diligence investigation on Chinese companies. Trying to find the best partner for you.
At the same time, Chinese companies have also made careful arrangements and due diligence in terms of laws, finances, and channels. According to sources, one company has prepared for eight or nine months, and this company has accelerated international mergers and acquisitions in recent years. And there are obvious advantages in the global ecological chain construction.
However, with Hisense, Meiling figure appeared, adding some variables to the M&A matters. The ultimate merger and acquisition case will need to be finalized by Gorenje.
Gorenje, which focuses on refrigerators, washing machines and other products, is facing a 'one-of-three election'. Regardless of who is the ultimate success, this is the first case of Chinese M&A in China after the appliance industry entered 2018, which means the acquisition of China’s home appliance industry in Europe. Expansion will further accelerate.
For most Chinese consumers, Gorenje is unfamiliar. Why did the above three Chinese companies acquire the brand of Slovenia instead of the rest of Europe?
In fact, Gorenje is a relatively well-known brand in Europe. For Chinese companies, successful acquisition of Gorenje will have absolute strategic significance.
The first is to use Gorenje to open up infiltration channels to other European countries. Gorenje was established in 1950. It is the largest white goods manufacturer in Slovenia (Home Appliances) and has a 4% market share in Europe. It is a European major appliance manufacturer. one.
Most importantly, since the establishment of Gorenje, they have continued to expand to other countries. Its expansion method is multi-brand and multi-channel. Up to now, it has 6 shares of Gorenje, Mora, Atag, Pelgrim, Etna, Körting and Sidex. Brand.
In terms of channel expansion, the Gorenje Group currently includes 83 companies, of which 59 are located outside Slovenia and its products are spread over more than 70 countries.
This means that the acquisition of Gorenje is equivalent to an increase of sales in 70 countries and its six sub-brands.
In the European market, the expansion and maintenance of channels is more difficult than in China. Therefore, through the acquisition of a mature brand open channel, the formation of multiple brand positions will have a multiplier effect. For example, Gorenje in Germany, Austria, France , Denmark and Italy and Australia have established distribution and sales networks.
Secondly, through Gorenje's sports marketing in Europe, it cuts into sports marketing. Gorenje's sports marketing in Europe has a certain brand influence. Well-known include: Slovenia Nordic Ski Team, Gorenje Handball Club, French Football Championship Coupe de la Ligue, etc. The total sponsor of the project.
For Chinese home appliance companies, getting closer to European consumers through sports marketing is one of the shortest paths.
In 2013, Haier sponsored the Italian National Volleyball League and sponsored the football match between the Italian national team and the Polish national team, laying the foundation for Haier’s position in Italy.
In 2016, Hisense sponsored the European Cup to increase sales and brand awareness of Hisense in Europe. Therefore, in Europe, sport is one of the most popular marketing methods that most easily impress consumers.
Thirdly, it helps to build a complete ecosystem. Gorenje also produces ceramic, kitchen and bathroom furniture in addition to home appliances, and provides energy, ecology and trade services. Also with Swarovski, Pininfarina, Karim Rashid and Ora -?to have a good cooperation.
China's household electrical appliance companies already have a sound industrial chain and ecosystem. Once they have successfully acquired Gorenje, the integration of the resources of any Chinese brand in Europe and the establishment of an ecological circle will be a useful supplement.