Whirlpool whose products are distributed by Arisit a Harvey Norman owned Company is struggling, with the Company that was made famous in Australia by the jingle “Does Your Mother Own a Whirlpool” has fallen victim to competition and a lack of marketing for the brand, as a result the business is now off loading the brand to competitors in some Countries.
This week the Company revealed profits fell for a sixth straight quarter in the three months ended December with the books being propped up by the sale of a 24% stake in its Indian unit to pay down debt.
The struggling US appliance brand is currently selling down assets in Europe, Middle East, and Africa (EMEA)
According to management the European Commission this week approved the sale of their European business to Arcelik the owners of Beko and Hitachi appliances in Australia.
Also, this week the UK Competition and Markets Authority (CMA) provisionally found that the deal between Arçelik and Whirlpool is not likely to raise significant competition concerns.
In a ruling they pointed out that Arçelik and Whirlpool are two of the largest suppliers of major domestic appliances (MDAs) in the UK, including washing machines, tumble dryers, dishwashers, and cooking appliances.
The provisional decision to clear the deal was made by an independent CMA panel, as part of an in-depth Phase 2 investigation.
The panel found that although Arçelik and Whirlpool both have strong market positions, they will continue to face significant competition from other suppliers. This includes well known suppliers and brands such as BSH (including its Bosch and Neff brands), Haier Group (including its Hoover and Candy brands), Samsung and LG; retailers’ ‘private label’ brands such as Logik and Bush (Currys and Argos); and more recent entrants such as Hisense.
Similar to what is happening in Australia where Chinese brands such as Haier are growing share the UK panel found that the competitive landscape for appliances is changing.
They claimed that Whirlpool’s market position in MDAs has significantly declined over the last decade, and it is likely that its European MDA business will be fundamentally different in the future.
At the same time, Chinese suppliers such as Haier and Hisense Group have gained market share, and it is likely that they will continue to expand.
They claim that their market dynamics are supported by evidence, including from internal documents, financial analysis and third parties.
As for Whirlpool they are betting on a rebound in U.S. home sales after a tough period of lower demand due to high mortgage rates.
