General Electric is known worldwide. Household appliances were manufactured by GE Appliances. The range of manufactured household appliances is quite wide and includes a line of household appliances for the kitchen, laundry, filters, air conditioners.
Who owns the GE Appliances brand
Since 2016, the Chinese company Hier has acquired the rights to use the GE Appliances brand. The right to manufacture and sell household appliances under the GE Appliances brand is licensed by Hier for 40 years, until 2056. The GE Appliances brand itself remained the property of General Electric, but it will be used by Hier.
Where is GE Appliances home appliances manufactured?
Also, General Electric was sold all production facilities located in the United States, now the factories belong to Haier. General Electric abandoned the home appliance business. GE Appliances home appliances are manufactured both in the United States and assembled in other countries. For example, in Mexico or Malaysia. But such a policy for the production of household appliances was not only in Haier, but was also practiced earlier by GE.
Why General Electric sold its home appliance business.
Most likely this decision was influenced by the situation with the household appliance market. Chinese companies have flooded the markets with cheaper appliances. Competition has increased, the business of manufacturing and selling household appliances has become unprofitable for many companies. One of the decisions of corporations to get rid of a less profitable business by selling or licensing their brand to another company. As a rule, companies that buy or license a brand are engaged in the production of household appliances.
What is the benefit of Haier from acquiring GE Appliances?
Companies like Haier were created as large manufacturers of household appliances. Oriented first to Asian markets, followed by expansion to other continents. One of the advantages in buying old brands with a strong position is entering new markets, as well as promoting your own name.
Do not forget that for example, by purchasing GE Appliances, Hier also gained access to the factories, laboratories and developments that GE had previously led in the direction of improving household appliances.