(Seoul = Yonhap News) Reporter Kim Eun-kyung = Suspicion can often be seen online that home appliances sold at department stores, home appliance retailers such as Hi-Mart, Electronic Land, and online are different products even though they look similar on the outside. Those who make this claim say that home appliance companies make and sell different products depending on the distribution channel.
Some argue that there is a big difference in performance because home appliances sold at department stores use high-quality parts, while those sold online use low-priced parts.
We checked with home appliance manufacturers to see if this claim was true.
◇ If the model name is the same, the product is the same regardless of the seller.
According to the home appliance industry, if the model name is the same, the product is the same in all aspects, including parts, design, and performance, regardless of where it is sold.
This also means that if the model name is different, there is something different.
For example, in the case of Samsung Electronics' Bespoke refrigerator 4-door slim ice maker, the model name for energy consumption efficiency level 1 is RF85C90D1AP, and for level 2 energy consumption efficiency, the model name is RF85C90D2AP, with one number different.
A Samsung Electronics official said that each of the alphabets and numbers that make up the model name has a meaning, such as RF for refrigerator, 85 for 800 liter (875 liter) capacity, and C for release year (2023 model).
Just because the model name is different does not necessarily mean there is a difference in performance. Even if the performance is the same, the model name will be different even if just one of the handle colors or materials is different.
A Samsung Electronics official explained, "For example, when buying a mobile phone, just as there is no difference between the product you buy at a department store and online, if the model name of a home appliance is the same, it is the same product regardless of the distribution channel."
An LG Electronics official explained, "There are cases where home appliances of the same model name are sold simultaneously in department stores and mass retailers, and are sold online. There is no reason to do so as it is disadvantageous in terms of unit price to produce equipment or parts separately for department stores and mass retailers."
This official said, "Take refrigerators as an example, they usually move on to convenience after considering the capacity and number of doors, and design such as color is considered a secondary priority."
◇ Where did the perception that products differ by distribution channel come from?
So why has the perception spread that home appliances sold at department stores, mass retailers, and online are different?
The industry analyzes this phenomenon as a result of the characteristics of each distribution channel.
Distributors mainly configure products to suit the customers they serve. High-end products are mainly displayed in department stores visited by customers with relatively high purchasing power, and low-end products are mainly displayed in mass retailers that value accessibility.
In addition, distributors sometimes request manufacturers to supply specific products or even request that they manufacture specialized models suitable for their customers. At this time, mass retailers often request relatively inexpensive lines, and department stores often request customization of high-end lines.
The price difference between department stores and mass retailers, which are the same offline stores, is also related to the sales power of the distribution channel. The better your sales power, the more likely you are to receive products from the manufacturer at a relatively low price. Even in cases where sales power is somewhat low, prices may be lowered through unconventional promotions.
Many high-priced home appliances are heavily promoted, so even if you buy the same product, the price this week may be different from last week.
An official in the home appliance industry explained, "The price supplied by the manufacturer to the distributor may vary depending on the contract, but the consumer price is ultimately determined by the distributor." He added, "The consumer price is determined by the distributor's strategy, such as when a small profit is added even if the product is imported at a high price, or when an unconventional promotion is held to quickly dispose of inventory."
This official emphasized, "For example, even in the same mass retailer, store A, which sells 1,000 washing machines per month, can import products from the manufacturer at a more advantageous price and sell them at a lower price than store B, which sells 500 washing machines per month. However, store B may decide to make a net profit of only half that of store A and lower the price further. The important thing is that if the model name is the same, regardless of the price, it is the same product in all respects."
Online sales have an advantage in pricing because, like other products, there are no offline store operating costs.
In an article titled 'Home Appliances, What's the Difference Between Online and Stores' posted on its website earlier this month, LG Electronics stated that the difference between online prices and product quotes received from offline stores comes from ▲ purchase method and model composition ▲ price and benefit structure ▲ consultation and experience ▲ installation and delivery and follow-up management ▲ method of comparing quotes.
LG Electronics said, "It is not that one side is always advantageous, but the difference is caused by the different purchase structures for each channel. To check whether the quote you received is a reasonable price, you can check whether the model and configuration of the quote is the same as the object of comparison, how much the benefits are reflected, whether it is based on the actual total burden, whether installation and incidental costs are included, and if it is a subscription, whether the contract terms are the same."
A department store official also advised, “Offline has the advantage of being able to see and buy products in person, and if you buy multiple home appliances, you can receive various promotions, so you can choose by considering various factors.”
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