General Electric is known all over the world. Household appliances are manufactured by GE Appliances. The range of manufactured appliances is quite wide and includes a line of appliances for the kitchen, laundry, filters, air conditioners. Many people remember from their childhood the various appliances in the house made by GE.
Who owns General Electric
Since 2016, the Chinese company Hier has acquired the rights to use the GE Appliances brand. The right to manufacture and sell appliances under the GE Appliances brand has been assigned to Hier for 40 years, until 2056. The GE Appliances brand itself remains the property of General Electric, but it will be used by Hier. In today’s world, this happens very often, with many well-known brands being licensed to other companies.
Where GE appliances are made?
Also General Electric was sold all the production facilities located in the U.S., now the plants belong to Haier. General Electric has abandoned the home appliance business. GE appliances are made both in the U.S. and assembled in other countries. For example in Mexico or Malaysia. Also some of the products may be produced at Haier plants in China. This appliance manufacturing policy is the norm now, so when you buy a GE appliance, you may think it is made in the USA, but it is actually made outside of the USA.
Why General Electric sold its appliance business
Most likely, this decision was influenced by the situation in the market of household appliances. Chinese companies flooded the markets with cheaper home appliances. Competition has increased, and the business of manufacturing and selling appliances has become unprofitable for many companies. One solution is for corporations to get rid of the less profitable business by selling or licensing their brand to another company. Generally, the companies that buy or license the brand are in the appliance manufacturing business. And this production is very large, for example, 70% of the components in the world for the production of microwave ovens are produced by the Chinese company Midea.
How does Haier benefit from acquiring GE Appliances
Companies such as Haier were created as major manufacturers of home appliances. Focused first on Asian markets and then on other continents. One of the advantages of buying old brands with a strong position is entering new markets, as well as promoting your own name. It should not be forgotten that, for example, by buying GE Appliances, Hier also gained access to the factories, laboratories and developments that GE had previously conducted in the direction of improving home appliances. And also do not forget about marketing, the customer usually chooses the product by the brand he likes. If there are two Haier refrigerators next to each other in the store, which one will the buyer choose? 70% will most likely buy GE, as this brand is familiar to them and they have seen GE fridge at their grandmothers and grandfathers. But they do not know that these refrigerators have the same compressors, electronics, of course the design is different.
