Chinese appliance manufacturer Dreame is focusing on 'trust' as a key factor in the South Korean market, following its success in technology. With Chinese companies already holding a significant share in the robot vacuum sector, Dreame aims to enhance its competitive edge against local giants Samsung Electronics and LG Electronics by strengthening data privacy and after-sales service (AS).
On August 21, Dreame held the 'Dreame in Seoul' event in the Han River Gavit Island in Seocho-gu, Seoul, where it unveiled its localization strategy and new products. Kim Myung-hwan, head of marketing for Dreame Korea, stated, "Our localization strategy focuses on four key areas: innovation, consumer understanding, trust, and co-growth. Our goal is to create an experience where Korean consumers can trust and comfortably choose Dreame, rather than just selling products."
A major emphasis for Dreame is data protection. The company relocated its Korean user data server from Singapore to South Korea at the end of last year. It has also implemented a system where images and videos captured by its robot vacuums are not uploaded to the cloud. Additionally, multiple encryption technologies are applied to personal data. After increasing its market share in South Korea to 12.8% last year, Dreame is expanding its product lineup this year to include personal care and kitchen appliances, in addition to robot vacuums.
Dreame is also enhancing its after-sales service. The company plans to collaborate with local firms such as Lotte Hi-Mart and SK Networks Service to expand its service infrastructure. This move aims to address the relatively weak after-sales support that has been a concern for Chinese appliance manufacturers in the South Korean market.
New products are being introduced with a focus on technological competitiveness. The 'Aqua Steam' product directly sprays 180-degree high-temperature steam onto the floor, followed by a hot water roller mop to remove contaminants. The roller mop can extend up to 8 cm sideways. Dreame plans to leverage the technology it has developed around robot vacuums to expand into cordless vacuums, personal care, and kitchen appliances.
The backdrop for Dreame's expansion in South Korea is the market landscape dominated by Chinese companies. According to IDC, in the global home cleaning robot market last year, Roborock held the top position with a 17.7% market share, followed by Ecovacs at 14.3%, while Dreame secured third place with 10.5%. All top five companies in the market were Chinese.
The competitive landscape in South Korea is becoming increasingly complex. With Chinese companies like Roborock and Dreame having established a foothold, Samsung and LG are countering with features tailored to AI, security, and the local living environment. Dreame's emphasis on not only technological competition but also data protection and after-sales service indicates that the barriers Chinese brands must overcome in the South Korean appliance market are evolving.
* This article has been translated by AI.
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