Samsung, LG target U.S. built-in market in home appliance expansion

Home > Business > Industry

Samsung, LG target U.S. built-in market in home appliance expansion

Published: 05 May. 2025, 12:38 Updated: 06 May. 2025, 17:31

Audio report: written by reporters, read by AI

SKS hosted the annual Uncorked event featuring a panel on the sensory-driven future of design during KBIS 2025 in Las Vegas on Feb. 25. [AP/YONHAP]

Samsung Electronics and LG Electronics have solidified their positions in the global home appliance market. Now, they're targeting the built-in home appliance market in the United States.

Amid slowing demand for general household appliances, these companies are betting on the high value-added business-to-business (B2B) built-in market as a new growth engine to have their gadgets built into North American households and buildings.

For Korean companies traditionally focused on business-to-consumer (B2C) sales, the B2B market remains unfamiliar terrain, as the brand power that Samsung and LG have cultivated in the home appliance space hasn't carried over easily into the sector.

Unlike B2C sales, which rely on major retailers to reach consumers, the B2B built-in appliance market requires building sales channels through construction companies.

The North American built-in market has long been dominated by legacy brands such as Whirlpool, an American company, General Electric, now owned by China, Sub-Zero & Wolf, another American company, and Miele, owned by Germany.

In this context, Korean companies are turning their attention to the built-in market as a way to break out of the saturated B2C industry and tap into new business opportunities. B2B contracts are typically bulk orders, making the unit price higher and less sensitive to external factors.

Models introduce products under the Dacor brand, a built-in home appliance brand acquired by Samsung Electronics, at the Samsung Store in Shinsegae Department Store in Gangnam District, southern Seoul, on June 19, 2024. [YONHAP]

Moreover, while initial market entry barriers are high, once deals are made, they often lead to long-term partnerships, creating a strong "lock-in" effect.

The global built-in appliance market is projected to reach $64.5 billion this year, according to market research firm Euromonitor.

LG and Samsung's contrasting approaches

What’s notable is the contrasting strategies adopted by Samsung and LG. While LG aims to start its own brand and venture onward, Samsung is taking a shortcut by buying a local brand with an established business network.

LG Electronics initially partnered with U.S.-based premium built-in appliance maker Viking Range in 2010 but ended the partnership after about a year, choosing instead to develop its own brand. In 2016, it launched its ultrapremium brand Signature Kitchen Suite (now known as SKS) by deliberately removing the LG Electronics logo.

In contrast, Samsung Electronics acquired Dacor, a well-known U.S. luxury appliance brand, in 2016. By absorbing Dacor’s established brand value and local distribution network, Samsung aimed to accelerate its penetration into the high-end market.

LG Electronics showcased their premium built-in appliances brand SKS at the Design and Construction Week 2025 held in Las Vegas on March 7. [LG ELECTRONICS]

Despite their different approaches, both companies share a focus on the "ultrapremium" segment. Both are rolling out product lines that are five to 10 times more expensive than standard appliances, presuming that demand will continue to grow alongside the expansion of the luxury housing market.

A 10-year bet on the ultrapremium

Fortunately, Samsung’s and LG’s long-term strategies are beginning to bear fruit.

In a recent survey by U.S. consumer magazine Consumer Reports on the "Most Reliable Appliance Brands," SKS ranked sixth, following LG Electronics in second place.

As brand awareness and trust increase, performance is also on the rise. According to LG, its B2B appliance sales in the U.S. have grown at an annual average of more than 30 percent over the past decade since 2014.

Participants at the Design and Construction Week 2025 try out the premium built-in appliances of SKS, owned by LG Electronics, at a venue in Las Vegas on Feb. 25. [LG ELECTRONICS]

Dacor is also gaining momentum. Samsung reported that Dacor’s sales more than doubled as of 2022 compared to when it was acquired.

On Thursday, Consumer Reports noted that five of Dacor’s refrigerator models swept the top five spots in the built-in four-door, also known as the "French doors," category.

Since last year, LG Electronics has been actively targeting home builders by establishing a specialized sales team called LG Pro Builder. This year, the company rebranded Signature Kitchen Suite as SKS.

“In the U.S. home appliance market, about 20 percent of built-in B2B sales come through builders,” said LG Electronics’ home appliance and air solutions division CEO Lyu Jae-cheol at the Design and Construction Week (DCW 2025) held in Las Vegas in February. “At a press meeting last year, I said we would rank in the top three of the B2B market within three years, and we’re currently on that track,” he said.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY YI WOO-LIM [[email protected]]