| Chinese property developers started to focus on high-quality housing since2000andsome of them were attracted by Miele; they went to Guetersloh in Germany where thiscompany headquarters are located. Until these guests were welcomed into theirheadquarters, little did the HQ in Germany know about the significance of entering theChinese market.As a result, the Shanghai Representative Office of Miele was established on October26,2004, followed by the establishment of the Beijing Representative Office in2005. Itsdevelopment within the Chinese market enabled Miele China to become establishedofficially in June2008and from this point on, engaged in retail business operations. Salescounters were established for Miele independent type appliances at the Shanghai OngoingDepartment Store and Beijing Xinguang Tiandi in September2009.As a family business, Miele delivers a global annual turnover of€2.8billion, of which,75%is generated within Europe. Even so, the successor of the4th generation of this familystill has confidence in the Chinese market. Despite major life style differences betweenChinese and German consumers, they still believe that high-status consumers desiresuperior appliances; just like those in Dubai or New York. Over the past two or three years,relying on its honorable brand image, through its extremely simple appliance design andhumanized operation manner, Miele appliances have won the favor of numerous high-endconsumers and top mansion developers in China. Based on the accumulated marketexperience in the real estate project cooperation and development for the retail market overseveral years, Miele established the first flagship store of Miele House in China, in2010.Mangrove West Coast, known as the landmark mansion of Shenzhen, is the first realestate project in which Miele participated in China. In2005, Miele started to follow up thisproject and installed appliances in a total of1,164apartments in early2006. Later, Mieleconcentrated on the markets of Shanghai, Beijing and those surrounding the two cities. Forexample, Miele appliances were used for over200luxurious apartments, including ParkHyatt Residences and Park Hyatt Penthouses in the Yin Tai Centre, a landmark structure of Chang An Avenue in Beijing. Miele appliances also serve the chairman suites and presidentsuites in the Park Hyatt in Beijing. It is reported that many stars in the entertainment andsports industries in Chinese mainland and Hong Kong have purchased apartments and livethere. Additionally, Miele appliances find their way into the mansions of Pan GuMagnificent Spectacle and the Pangu7Star Hotel facing the Bird’s Nest and Water Cube.Product design plays a very important role. This includes the appearance andoperational performance of the appliance. Dr. Zinkan indicates: On the other hand,after-sales service is equally crucial. Before entering the market, we must ensure thatprofessional after-sales services personnel are readily available. This explains why Mielehas so far set up only two branches in Shanghai and Beijing respectively.According to analysis of the market and Miele current business situation, give somesuggestions on how to find the market, how to make the develop plan in the future. |
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