Four years after its extraction, the South Korean home electronics company, Daewoo Electronics Corporation is now set to recommence business in the Central European land of Austria. This move is in line with the firm’s decisive aim to hit the European market, from this year onwards.
Daewoo Electronics on Wednesday confirmed the company’s resolution to re-enter one of the world’s richest markets, four years since its retreat. It also disclosed the company’s impending trades with Austria’s major buyers.
To mark its optimistic re-entrance, new deals are recently signed by Daewoo Electronics for its German unit. Indicated on the company’s current German unit deals are certain terms for its distribution of overall household appliances to Austrian home appliance importer GGV.
In addition, the company has also signed up an agreement to supply Daewoo washing machines to washing machine manufacturer Eudora and Daewoo kitchen appliances to furniture distributor Moemax.
Meanwhile, the company is also in talks about delivering Daewoo products to a discount retailer, Hofer. Besides having more than 400 stores across the land, Hofer also books 61 percent of the Austrian market shares. Apparently, Daewoo sees a great prospective on Hofer, thus, considers taking up a bond with such business entity.
Daewoo Electronics began its exports to Austria with its German unit in 1992. That was when it was still under Daewoo Group, a major conglomerate in South Korea next to Hyundai Group. Originally, Daewoo conglomerate has around 20 divisions before the Asian Financial Crisis emerged in 1998. Unfortunately, the company went through a bankruptcy in 1999. While some of its subsidiaries have failed to endure the crisis, a few of them managed to survive today as independent companies. Among them is Daewoo Electronics.
In line with the company’s effort to reorganize overseas business operations, Daewoo has decided to halt exports to Austria in 2008.
Regaining the momentum after a few years of reform, Daewoo Electronics is once again up for a new venture along with the present move to resume its Austrian sales and acquire sales boost in the European market. The company is therefore targeting four major markets in Northern Europe, including Sweden, Norway, Finland and Denmark.
Other existing Daewoo Electronics subsidiaries in Europe are situated in Rumania, France, Poland, Spain, Germany and the UK.