this post was submitted on 18 Sep 2025
196 points (100.0% liked)
Hardware
4142 readers
213 users here now
All things related to technology hardware, with a focus on computing hardware.
Rules (Click to Expand):
-
Follow the Lemmy.world Rules - https://mastodon.world/about
-
Be kind. No bullying, harassment, racism, sexism etc. against other users.
-
No Spam, illegal content, or NSFW content.
-
Please stay on topic, adjacent topics (e.g. software) are fine if they are strongly relevant to technology hardware. Another example would be business news for hardware-focused companies.
-
Please try and post original sources when possible (as opposed to summaries).
-
If posting an archived version of the article, please include a URL link to the original article in the body of the post.
Some other hardware communities across Lemmy:
- Augmented Reality - !augmented_reality@lemmy.world
- Gaming Laptops - !gaminglaptops@lemmy.world
- Laptops - !laptops@lemmy.world
- Linux Hardware - !linuxhardware@programming.dev
- Mechanical Keyboards - !mechanical_keyboards@programming.dev
- Microcontrollers - !microcontrollers@lemux.minnix.dev
- Monitors - !monitors@piefed.social
- Raspberry Pi - !raspberry_pi@programming.dev
- Retro Computing - !retrocomputing@lemmy.sdf.org
- Single Board Computers - !sbcs@lemux.minnix.dev
- Virtual Reality - !virtualreality@lemmy.world
Icon by "icon lauk" under CC BY 3.0
founded 2 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
Why aren't there smaller companies looking to make a basic appliance without all of the BS? Call it "Basic Appliance" and sell it at Costco. Make it so it's slightly less expensive than the Samsungs, etc. Maybe even put the Kirkland brand on it. Seems like the perfect money making operation.
It's been a while since I worked on the US appliance market, but there are no smaller companies in the appliance space outside of some high European brands at the top end of the market.
I am not that well versed on the manufacturing side of the things, but I believe it is impossible for a smaller player to compete in the mass market due to extremely low margins (under ~5%), particularly in the "basic appliance" segment and the fact that manufacturing is extremely sensitive to scale (your per unit manufacturing cost will likely be significantly higher than Samsung, LG, Hair, Electrolux etc.).
Essentially, a smaller company will always have SKUs that will be more expensive than the comparable SKU from a major company while also being "offbrand" and having weaker distribution and ecosystem networks.
A Chinese company could definitely pull it off, if they wanted to.
The thing is they, song with most of the world, probably wouldn't want to start a business venture in the USA anyone soon
Haier (they mostly use local brands from what I remember) and have factories in the US. Honestly, I don't think they are interested in low margin business and if anything are probably looking to implement something similar to Samsung.
Haier is the chinese company that owns GE Appliances.
Yup, that's the brand I was looking for. I think they own Honeywell too, I could be wrong.
Costco only takes a 10 or 15% markup though. Assuming they're doing the usual of doubling their costs, hopefully that would be under the cost of their competitors. Even if it was equal or slightly more expensive, I would support them.
It's not the retailer side that's the problem, it's the manufacturing side. CostCo is almost certainly not going to get into the appliance market. It's a difficult market that's not very similar to other electronics or other home improvement segments. Not to mention that CostCo's economies of scale with appliance manufacturing would be terrible. They would be limiting their hypothetical appliance manufacturing business to one retailer in one country (albeit a very large one). Not to mention current tariff risks. A "basic" class appliance SKU would be more sensitive to the relatively higher costs for manufacturing in the US. Appliances are manufactured in the US, but the economics would be more negative on a relative basis for a "basic" class appliance brand owned by a retailer.
I am not very knowledgeable about CostCo's in-depth per-segment strategy, but I suspect appliances in particular are more sensitive to margin issues even on the retailer side. Appliances are big, bulky and difficult to deal with (on a relative basis).
Don't get me wrong, I would welcome more competition, but what you're proposing is likely not possible. You would probably need regulation considering the nature of the appliance market.
They're already in the appliance market, they sell them. If you mean as a private label, they just put their name on other company's products. I think they call it no-label or something like that.
It wouldn't be the first time something like that was done either, especially in the appliance world. I occasionally get a call for an IKEA or Kirkland Signature Appliance... They're always just rebadged units from a major manufacturer, often Whirlpool in the cases I've encountered.
I see, I didn't know that they had a private label appliance product line (don't remember seeing their brand in their sales data, but I probably missed it).
And they are significantly cheaper than comparable SKUs from branded products (especially the entry level brands, Frigidaire I believe is one)?
We have that here in sweden at least, and unsurprisingly it seems to sell quite well. And of course since it's so hilariously cheap for them to produce it's not like they have to sell many to make profit.
Frankly a lot of the time they somehow manage to keep the quality high enough that with the price they're sold for it kinda feels too good, like i think these things might well last the rest of my life, why are they selling things i won't have to buy again??
That's awesome. I wonder if they would distribute to the US? Do you mind sharing the company name?
It's like, all stores that sell household devices. Biltema, jula, ICA, Clas Ohlsson, presumably IKEA but the nearest IKEA to me is more than an hour away so it basically doesn't exist.
I doubt they'd distribute to the US just because it'd be a very strange thing for them to do, i'd imagine you can get basically the same things direct from china anyways.