MEDIA / H-Story

– Hyundai Corporation Distributes Home Appliances Using the Brand Name of “Hyundai Electronics”
– Enters over 150 Countries Around the World Including Europe and Central and South America, Recoding KRW 15 Billion in Sales
– Finds New Partners and Strengthens Brand Management

▲Newdaily DB

TVs and refrigerators with Hyundai logo appeared at the IFA 2023, Europe’s largest home appliances trade show.

Somewhat unfamiliar products, such as TVs, refrigerators, and vacuum cleaners, under the brand name of Hyundai Electronics were displayed at the “Hyundai” booth in Hall 6 of the Berlin exhibition center (Messe Berlin) in Germany.

However, the products were not directly produced by Hyundai but distributed in the global market by Hyundai Corporation Holdings, the holding company of the Hyundai Corporation (formerly Hyundai Group’s trading house).

The predecessor of Hyundai Corporation’s home appliance business belonged to the former Hyundai Electronics. However, Hyundai Electronics suffered a liquidity crisis following the “big deal” in the semiconductor industry in 1999 and disappeared into history in 2001. The company was reborn later with its name changed to Hynix Semiconductor and was incorporated into the SK Group, becoming the current SK Hynix. After Hyundai Electronics’ semiconductor division was transferred to Hynix, several remaining divisions were split up and sold. The home appliance business was no exception.

However, overseas local distributors who used to import/distribute Hyundai Electronics’ home appliances requested that they be allowed to procure the products and continue to use the brand name of “Hyundai” for the sake of their business. To meet such needs, Hyundai Corporation acquired the “Hyundai” overseas trademark rights related to electronic and ICT products previously held by Hyundai Electronics from SK Hynix in 2007 and began a licensing business targeting dealers of Hyundai brand products. Although Hyundai Corporation sold all of its trademark rights to HD Hyundai in 2019, it is continuing its business by sub-leasing them.

Hyundai Corporation explains that the Hyundai Electronics brand business is largely operated in two ways: licensing and OEMs. As for licensing, dealers (local distributors, etc.) in each country are allowed to use Hyundai trademarks on the products they procure and are required to pay royalties.

Currently, Hyundai Corporation is engaged in the business of major home appliances, such as TVs and white goods, as well as hardware products such as generators and tools. Over 120 dealers in over 150 countries, including those in Europe and Central and South America, are distributing Hyundai brand products. As for OEMs, Hyundai Corporation mainly works with competent Chinese manufacturers. Relevant sales amount to approximately KRW 15 billion per year. However, these products are not distributed in the Korean market.

Hyundai Corporation expects that participating in the IFA events will be an opportunity to strengthen partnerships with existing dealers, promote the Hyundai brand and new products, and secure new clients.

“As many of our clients have participated in IFA in recent years, we decided to join the event for the first time in 12 years — and the brand business is expected to grow both quantitatively and qualitatively in the future,” said Kim Jin-ho, head of the Brand Team 1, Brand Headquarters, Hyundai Corporation Holdings.

“To this end, securing quality manufacturers and dealers is important, and we plan to expand the pool of quality dealers by discovering new partners and further strengthen brand management,” Mr. Kim added.

 

September 9, 2023
Newdaily